According to chief executive Nick Gamkrelidze, Georgia Healthcare (GHG) is unique: "There isn't another company like us on the planet." He was referring to the fact that GHG is the only publically-listed company to hold the leading position in any global healthcare market.
The growth in global healthcare markets (including in Georgia) is extraordinary and unlikely to let up. Mr Gamkrelidze also swept aside concerns that Georgia is not a particularly stable country. "We're in a tough neighbourhood, but Georgia has a nice government, and is criminal and corruption-free," he said. Revenues grew 26.2 per cent at the group's core healthcare services business last year, as a strong seasonal effect in the fourth quarter supported double-digit growth.
In 2016, the group also entered into the pharmacy business through the acquisition of GPC and ABC. The former (completed in May 2016) is now fully integrated and contributed GEL133m of revenue in the period. Those acquisitions have also helped eliminate some costs, as the group previously spent big on pharmaceutical products. As a result, cash profit margins rose 280 basis points, to 30.2 per cent. That said, extra finance and integration costs could weigh on profits this year.
Broker Numis expects EPS of 55 tetri (16.8p) in the year to December 2017, rising to 78 tetri in 2018.
GEORGIA HEALTHCARE (GHG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 350p | MARKET VALUE: | £461m | |
| TOUCH: | 350-353p | 12-MONTHHIGH: | 388p | LOW: 145p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 369 tetri* | NET DEBT | 46% | |
| Year to 31 Dec | Turnover (GLm) | Pre-tax profit (GLm) | Earnings per share (tetri) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 196 | 14.5 | 0.4 | na |
| 2015 | 246 | 23.6 | 0.2 | nil |
| 2016 | 426 | 40.2 | 0.4 | nil |
| % change | +73 | +70 | +160 | - |
Ex-div: na Payment: na £1 = 3.28 Georgian Lari *100 tetri in 1 Georgian Lari | ||||
