EBITDAR down but Ramsay reports positive signs on price and volumes

Ramsay Healthcare has reported a 1.6% rise in its UK revenue to £209.6m for the six months ended 31 December 2018.

The Australian-owned company said a challenging Q1 had impacted on earnings in the first half and EBITDAR was down 9.2% to £44.8m.

In common with Spire and BMI, Ramsay has reported a decline in NHS activity following the removal of waiting times targets and penalties for NHS trusts. However, it said positive signs of growth were beginning to emerge.

Commenting on the results, Ramsay Health Care managing director Craig McNally said: ‘In the UK, while Q1 was challenging and impacted overall earnings for H1, there were good signs of recovery in NHS volume growth in Q2 and we are optimistic this will continue into H2 FY ’19.’

Ramsay said it was also anticipating a ‘positive announcement’ on NHS tariffs from April 2019.

However, despite encouraging signs on price and volume growth in the UK, McNally added: ‘There is some way to go in the UK, and Brexit may pose some challenges in the short term, but we are pleased that volume growth is returning and tariff looks likely to improve.’