Ramsay faces headwinds

ASX LISTED hospital healthcare group Ramsay Health Care has announced a downturn in its FY18 guidance.

Given the performance of its UK hospitals in the current challenging environment, and following a review of the carrying value of its assets, Ramsay said it would recognise a charge of £70 million (AU$125 million) net of tax based on an “onerous lease provision” and certain UK site write-downs.

The company said it has also experienced weaker growth rates in procedural work and inpa ent admissions in its Australian opera ons in recent months and delays in the rollout of the Ramsay Pharmacy franchise network.

With “disappoin ng May results and with no material improvement an cipated for June, Ramsay advises that its FY18 Core EPS growth is now expected to be approximately 7% compared to the guidance of 8% to 10% previously provided,” the statement revealed.

Commen ng on the trading update, Ramsay md Craig McNally said, “Ramsay expects opera ng condi ons in both the UK and Australia to remain challenging.

“Given the current climate around private health insurance and affordability, we expect this trend will con nue into FY19.

“In the current climate the Company is focused on rese:ng and strengthening its business for the longer term.”