Southern Cross results – Strong acquisition led growth delivers market beating returns for investors
By SUHAIL MIRZA, firstname.lastname@example.org
Bill Colvin, the new chief executive of Southern Cross Healthcare Group presented the results to the City for the year ended 30th September 2007, describing them as “a reasonably strong set of results by any measure”. I joined Bill for the presentation and spoke with him about his new role.
With a market capitalisation of close to £1 billion, Souther Cross has shown enviable growth for the year:
- Revenue growth of 19.8% from £610 to £731m; most of this was acquisition led although the underlying revenues was up 6.6%
- Adjusted EBITDAR grew by 36.9% to £66.8m which attests to the operating leverage in the business, i.e. greatly outpacing revenue growth.
- Adjusted earnings per share rose by a dramatic 61% to 19p.
Little wonder that Bill Colvin, with customary understatement befitting a Scottish accountant, described these (first full year results as a public company) as representing “a good solid year”.
Bill paid tribute to Phill