News: Pulse Health to drive growth by developing, acquiring more hospitals

Pulse Health (ASX:PHG) is making good on its drive for niche growth in the private hospital sector with the development of the new specialist surgical facility on Queensland’s Gold Coast.

Pulse Health’s hospital portfolio increases to eight with the development of a new specialist surgical facility on Queensland’s Gold Coast.

Earlier this year, it raised $30 million from investors which was undertaken specifically to pursue acquisition opportunities within Australia’s private hospital sector.

The company will lease the new specialist surgical hospital on Queensland’s Gold Coast, that will have six operating theatres and 24 beds, along with on-site radiology, pathology, pharmacy and consulting suites.

The hospital is forecast to be profitable within 12 months of commissioning in late 2015. The agreement brings to eight the number of hospitals now operated by Pulse, mainly in regional Queensland and New South Wales.

Given the cash war chest after debt, further niche acquisitions can be expected in areas of high need of hospital and related services.

It is likely future acquisitions or development will focus on surgical and rehabilitation specialist hospitals.

The past financial year capped a year of growth which saw group revenue up 9% to $52.4 million, while underlying EBITDA increased by 9% to $8.7 million (2013 $8.0m). 

Operating cashflow increased by 53% to $2.3 million (2013 $1.5m) and a maiden fully franked dividend was declared of 0.5 cents per share.