Business Description:
Ramsay Health Care Limited (RHC) is Australia´s largest private hospital operator. The company has grown through acquisitive consolidation and has become a global hospital group operating across Australia, the United Kingdom, France and Indonesia.

Strategy Analysis:
RHC has a three stage strategy to derive earnings growth. 1) Focused at extracting operational efficiency from merging assets of recent acquisitions. 2) To review its portfolio and re-invest funds to expand and attract higher returns on invested capital. 3) To further consolidate the international healthcare market. RHC is reviewing opportunities in France after acquiring a small portfolio of hospitals within Paris. Management has a disciplined approach in investing capital and we feel comfortable it will walk away from a deal if it can not generate adequate returns. Ramsay Health Care reported NPAT up 33.8% to $198.38m for the year ended 30 June 2011. This result was driven mainly by a strong performance across the company's Australian hospitals and an increased contribution from completed brownfield developments. Revenues from ordinary activities were $3.72bn, up 9.4% from last year. Diluted EPS was 90.2 cents compared to 69.2 cents last year. Net operating cash flow was $430.59m compared to $337.31m last year. The final dividend declared was 29.5 cents, taking the full year dividend to 52.0 cents compared with 43.5 cents last year. Barring unforeseen circumstances the company is targeting core NPAT and core EPS growth for the group of 10-12% for FY12.