Ramsay upgrades core net profit guidance February 1, 2010 -...

Ramsay upgrades core net profit guidance February 1, 2010 - 6:54PM
AAP

Hospitals operator Ramsay Health Care Ltd expects first half core net profit to rise more than 30 per cent after better than expected performances in its UK and Australian businesses.

The likely net profit result for the six months to December 31 is between 32 to 34 per cent more than the prior corresponding period, the company said in a statement on Monday.

"The strong core NPAT (net profit after tax) growth in this period is a result of better than expected performance in the UK and Australian businesses," the company told the Australian Securities Exchange.

"Ramsay's UK operations have benefited from internal cost restructuring in the second half of the 2009 fiscal year, as well as the realisation of cost efficiencies in the first half of the 2010 fiscal year."

Ramsay said the Australian operating performance had been slightly ahead of expectations, and that overall interest costs had been lower than expected.

Ramsay said core net profit growth for the full 2010 financial year was expected to be in the range of 18 to 20 per cent, above earlier guidance for core net profit growth of 12 to 14 per cent growth over the prior year.

"This upgraded core NPAT (net profit after tax) guidance of 18-20 per cent growth would translate into core EPS (earnings per share) growth of 10-12 per cent for fiscal 2010," Ramsay said.

Ramsay shares were 43 cents higher at $11.90 on Monday