Al Noor Hospitals Q1 revenue up 24pc
Abu Dhabi, April 28, 2014
Abu Dhabi-based Al Noor Hospitals Group said its revenue for the first quarter in 2014 increased by 24.7 per cent to $111.6 million when compared to $89.5 million last year.
Announcing the results for the period between January 1 to April 28, 2014, Al Noor said the healthcare group continued to perform in line with the board’s expectation in the first quarter, demonstrating strong revenue growth and stable Ebitda margins.
The number of revenue-generating physicians increased by 32 during the first quarter and by 132 compared with the first quarter of 2013, of which four came from the acquisition of the Gulf International Cancer Center (GICC), said a company statement.
Al Noor Hospitals said it remains confident of achieving its target of hiring 70-80 additional physicians in 2014 as a whole. The group successfully concluded the purchase agreement for GICC, valued at $21.8 million, it added.
In the first quarter, three new medical centres were commissioned. The medical centres at Bateen and Baniyas are in neighbourhoods with significant Emirati populations, and the ICAD medical centre is in an industrial workers residential facility.
Al Noor continues to remain debt free with a strong net cash position allowing the group to continue exploring further acquisition opportunities.
Dr Kassem Alom, the CEO of Al Noor Hospitals Group, said: “Trading in the first quarter has been in line with management expectations and we continue to make good progress hiring and retaining our physicians. Overall Al Noor remains on track to meet expectations for the full year and continue to view the outlook with confidence.”
“We have successfully concluded the commissioning of medical centres in Bateen, Baniyas, and ICAD, helping us extend our reach into areas where we did not have a presence previously,” he noted.
Al Noor said it continued to attract highly qualified medical staff during the first quarter. The revenue generating physicians increased from 470 by the end of 2013 to 502 by end of the first quarter 2014, an increase of 32 physicians. The company is on track with its physician hiring program for the year.
Outpatient volumes increased significantly with growth at existing and new clinics supplemented by a good start from the recent acquisitions. Inpatient volumes were flat overall, with increases in Airport Road Hospital and Al Ain Hospital compensating a reduction at the Khalifa Street Hospital, due in part to the on-going major refurbishment.
Al Noor recently completed the acquisition of GICC for $21.8 million, with an additional payment of $2.7 million made to lease the land for 25 years and a further payment of up to $2.2 million are subject to performance conditions.
"GICC is the only private cancer treatment centre in Abu Dhabi. By acquiring GICC we have added a high-growth service to our portfolio and further differentiated ourselves from our competitors," explained Dr Kassem Alom.
"Developing a cancer center is challenging due to rarity of expertise in the region, high Capex required, and long gestation period. GICC is well equipped, with surplus capacity and employs well-known and highly experienced physicians," he added.
The acquisitions completed in 2013 are performing as expected and their integration is underway supported by SAP implementation.
At Khalifa Street Hospital, as part of the growth plans, the group is taking up additional space in the existing building and enhancing the interiors of the clinics and inpatient rooms to improve the patient experience.
Construction on the new hospital in Al Ain continues as planned and we continue to expect to commission the hospital in 2016.
The new consolidated laboratory has been installed at the Khalifa Street Hospital and integration with other facilities is being worked upon.
As of March 31, 2014, Al Noor is debt free and has $63 million of cash and bank deposits, said the Abu Dhabi-based company.
A dividend payment for 2013 amounting to $17.7 million, and the GICC acquisition at a cost of $21.8 million was completed and funded during the first quarter from the cash on hand. Capital expenditure on medical equipment and software for the first quarter of 2014 was $6 million, it added.-TradeArabia News Service