Ramsay profits up on UK growth

Australia's largest private hospital operator, Ramsay Health Care, has increased its full-year profit by 39.3 per cent, driven by a strong Australian result and continued UK growth.

The company posted an annual net profit after tax of $148.28 million in the 12 months to June 30, increasing from $106.47 million in the prior year.

Operating revenue increased 5.4 per cent to $3,399.25 million in 2009-10.

Ramsay says it was driven by to a strong Australian operating result and continued growth in the UK, where National Health Service volumes helped lift overall private hospital admissions.

"The result also reflects lower interest costs and the realisation of cost efficiencies achieved in the UK business."

Ramsay says it is targeting core net profit growth of 13 to 15 per cent in the current financial year, translating to earnings per share growth of 10 to 12 per cent.

"The underlying strength of Ramsay's Australian business, the continued solid performance of its UK operations and recent entry into the highly disaggregated French market put Ramsay in an excellent position to capture future demand for health care," the company said in a statement on Thursday.

"Ramsay will continue to assess expansion opportunities via brownfield developments and acquisitions which add long-term value to its shareholders."

Ramsay Managing Director Christopher Rex said Australian earnings margins improved as hospital admissions grew and further operating leverage was achieved.

In the UK, Ramsay continued to attract more NHS volumes whilst achieving further cost efficiencies, he said.