20 Dec 2017 07:00
20 December 2017
NMC Health plc
(the "Company" or "NMC")
H2-17 GROUP STRATEGY & TRADING UPDATE
H2-17 Operational performance in line with expectations; outlook for 2018 remains positive
NMC Health plc (LSE: NMC) the leading integrated healthcare provider operating across the United Arab Emirates, is pleased to announce that operations during H2-17 have continued to perform in line with expectations. Consequently, the Company remains comfortable with the full-year guidance provided for FY17, which was reiterated during the H1-17 results conference call. NMC also maintains a positive outlook for FY18, supported by improving efficiencies at existing facilities, as well as new growth avenues available to the Company both within and outside UAE.
In order to properly capitalize on new growth opportunities, NMC is updating the Growth Strategy framework outlined in 2015.
Augmenting our core strategy
NMC's strategy encompasses three distinct phases: Capacity growth, Capabilities focus and Geographic expansion. While maintaining a firm focus on these three key tenets, NMC's updated strategy is aimed at enhancing the depth and breadth of our existing infrastructure. The augmented Growth Strategy entails:
1) Addition of new verticals: NMC intends to add new healthcare verticals, focusing on highly underserved segments in the UAE, as well as the wider GCC. Furthermore, the Company continues to develop its underlying Centers of Excellence, with the potential for some to be upgraded to new verticals in the medium term.
2) Targeting wider emerging markets: After successfully growing its geographic footprint outside the UAE, NMC is now expanding its target market focus from the GCC to wider emerging markets for the healthcare business. The Distribution business will continue to be focused on the UAE.
3) Fertility to be developed as a global business: NMC's fertility business remains the only exception within the healthcare segment, as it will continue to be developed globally. Given the nascent stage of the fertility sector around the world, both developed and emerging markets offer substantial growth opportunities. As the world's second largest player in the fragmented IVF market, NMC's strategy of developing an institutionalized business makes it a prime candidate to become a global consolidator.
4) Rapid adoption and deployment of technological innovation: NMC aims to embrace technological disruption instead of becoming disrupted by it. A number of innovative projects are already under way that will 1) add new services (which were not achievable previously without new technology), 2) improve patient experience and 3) improve operational efficiencies. NMC is developing a robust innovation structure and will not rely on acquisitions alone.
Prasanth Manghat, Chief Executive Officer, commented:
"Having made considerable progress on all the goals we set for ourselves in 2015, our updated strategy lays out a clear roadmap for continued growth. We successfully enhanced the level of complexities offered at NMC's facilities through both organic and inorganic expansion, established a firm foothold in Saudi Arabia and the broader GCC and continue to establish Centers of Excellence in key specialties within existing hospitals. As our business grows, we are looking to add complexities in the form of new verticals, enter exciting new markets and deeply integrate technology to expand the very boundaries of the healthcare sector."
Analyst and investor conference call
A conference call for analysts and investors will take place today, Wednesday 20 December 2017, at 17.00 UAE / 13.00 GMT.
Enquiries:
NMC Health plc
Prasanth Manghat, Chief Executive Officer
+971 (0)50 522 5648
Prashanth Shenoy, Chief Financial Officer
+971 (0)56 3290545
Asjad Yahya, Investor Relations
+971 (0)56 2190975
Media:
FTI Consulting, London
Brett Pollard / Mo Noonan
+44 (0)20 3727 1100
FTI Consulting, Gulf
Shane Dolan
+971 (0)4 437 2100
About NMC Health
The NMC group (the "Group") is the leading private sector healthcare operator in the United Arab Emirates, with a nation-wide network of hospitals and operations in the country since 1975. The Group currently operates or manages over 40 assets across 11 countries. NMC is also ranked as one of the top 3 in-vitro fertilisation ("IVF") operators globally. The Group is also a leading provider of long-term medical care in the UAE through its subsidiary ProVita. Pursing an aggressive international expansion program from 2016, the company now has over 35% of its licensed bed capacity in the Kingdom of Saudi Arabia (KSA), where the company has introduced long-term and multi-specialty care services. The enlarged company received almost 4.3 million patients in 2016. The Group is also a leading UAE supplier of products and consumables across several key market segments, with the major contribution coming from healthcare related products. The Group reported revenues of US$1.2 billion for the year ended 31 December 2016.
In April 2012 NMC was listed on the Premium Segment of the London Stock Exchange. NMC is a constituent of the FTSE 100 Index.