Portfolio Update – Purchase of Ramsey Health Care

By May 20, 2021Portfolio
Across investor accounts, we have bought Ramsay Health Care (ASX: RHC), a global health care company with a reputation for operating high-quality services and delivering excellent patient care. Ramsay facilities cater for a broad range of health care needs from primary care to highly complex surgery, as well as mental health care and rehabilitation. Ramsay Health Care employs more than 77,000 staff and treats 8.5 million patients in its hospitals and primary care clinics located in Australia, France, the United Kingdom, Sweden, Norway, Denmark, Germany, Italy, Malaysia, Indonesia and Hong Kong. We are positive on the medium-term outlook for Ramsay Health Care for the following reasons:
  • Population growth combined with aging demographics in key markets provide long term patient volume growth prospects;
  • Stretched UK public patient waiting lists look likely to be fast-tracked through the private hospital system;
  • Material balance sheet capacity to be used for acquisitions or buybacks;
  • The business has played a key role in treating COVID-19 globally, potentially putting the business in good stead for future government dealings.
While COVID-19 government restrictions present a near term earnings risk due to potential elective surgery disruption, robust longer-term organic patient growth prospects combined with RHC’s balance sheet capacity for acquisitions offsets the uncertainty and serves to provide an opportunity to enter the position at an attractive valuation. We have funded the purchase of Ramsay Health Care through the sale of Tabcorp Holdings (ASX: TAH). As always, thank you for your ongoing support; it is very much appreciated. If you have any questions or would like more information, please contact your SBB Wealth Representative.

 

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EP Financial Services Pty Ltd
ABN 52 130 772 495 AFSL 325 252 (“ELSTON”)
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