Al Noor misses margins

Investors may welcome the pause for breath. Last year, higher wages and a major refurbishment of the Khalifa Street hospital pushed cash profit margins down to 21.9 per cent, compared with 22.7 per cent in 2013. As a result, adjusted EPS of 70ȼ (47p) fell 8 per cent short of analyst expectations. Disruption at the Khalifa site will continue this year, putting ongoing pressure on margins as patient volumes remain depressed. Chief financial officer Pramod Balakrishnan says the company "is still growing", and there are "still investments to be made".

But Mr Lavater and his team aren't too worried. He believes the group "can manage the margin pressure" this year as hospital refurbishments and staff recruitment keep pace. Al Noor plans to open four medical centres this year, followed by a second site at Al Ain in early 2016. It's also hoping to double capacity at the Airport Road Hospital. Last year the group opened three medical centres and completed its acquisition of the Gulf International Cancer Centre, the only private cancer centre in Abu Dhabi.

Mr Laveter said the group is still committed to the strategy laid out at the time of the IPO in 2013. That involves expanding outside of Abu Dhabi either through an acquisition or by building new sites from scratch. That suggests what the company might look to do with the rest of its $83m cash pile after it has paid last year's much increased final dividend.

Prior to these results, analysts at Numis expected pre-tax profits of $99m this year, giving EPS of 82.7ȼ, compared to $84.6m and 70ȼ in 2014.