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New boss for Al Noor

Al Noor Hospital's boss is to become deputy chairman in October - he'll be replaced by John Hopkins Medicine International executive, Ronald Lavater
August 12, 2014

These results from Abu Dhabi healthcare provider Al Noor Hospitals (ANH) are chief executive Kassem Alom's last before becoming deputy chairman in October. The change had been first mooted prior to the company's flotation last year, but chief strategy officer Sami Alom said the group had decided to complete a year as a listed company before beginning a search for a new boss.

IC TIP: Hold at 1,009p

The new chief executive will be US citizen Ronald Lavater and he'll take the helm from 1 October. He joins from global healthcare group John Hopkins Medicine International, where he served as a senior executive for the Middle East division.

Mr Lavater will take over at Al Noor at a good time. Revenue grew strongly in the first half, which significantly reflects a 27 per cent increase in the number of company physicians and the opening of three new medical centres during the period. Excluding flotation-related costs and underlying operating profit climbed 23 per cent to $46.2m, too.

Moreover, the group acquired the Gulf International Cancer Center in February, which is the only private cancer treatment centre in the Emirate of Abu Dhabi. Given the lack of oncology expertise in the region - and the reluctance of Al Noor's competitors to take on the costs associated with running such a facility - Sami Alom described the acquisition as being of strategic significance.

Broker Investec Securities expected full-year EPS of 77ȼ (from 65.2ȼ in 2013).

AL NOOR HOSPITALS (ANH)
ORD PRICE:1,009pMARKET VALUE:£1.2bn
TOUCH:1,001-1,010p12-MONTH HIGH:1,269pLOW: 701p
DIVIDEND YIELD:1.3%PE RATIO:24
NET ASSET VALUE:176ȼNET CASH:$72.7m

Half-year to 30 JuneTurnover ($m)Pre-tax profit ($m)Earnings per share (ȼ)Dividend per share (p)
201318024.824.6nil
201422545.638.13.7
% change+25+84+55-

Ex-div: 10 Sep

Payment: 10 Oct

£1=$1.68