Ramsay Health Care posts 5.2% drop in UK revenue

The Australian-owned company expects earnings growth to be subdued in the UK, and a neutral outlook in France.

Ramsay Health Care has posted a 5.2% drop in UK revenue to £424.2m for the 2018 financial year as dampened NHS demand continues to rock the independent hospital sector.

The Australian-owned company, which slashed its earnings guidance in June after flagging a £70m charge related to the UK business, said it had seen a ‘significant downturn in NHS volumes’ in the year to 30 June.

In common with other independent hospital providers working in the NHS, Ramsay said it expects the market to pick up in the longer term, particularly in the light of the new funding announced for the NHS. For the time being, however, it expects earnings growth to be ‘subdued’ as continued challenges in the UK combine with slower growth rates in its domestic market and a neutral outlook in France.

However, the company says long-term fundamentals were continuing to drive the market for healthcare and it remained committed to expanding its global portfolio.