Ramsay Health Care (ASX:RHC) flagged two one-off items for the six months ended Dec. 31, 2024, prompting the company to abandon its profit growth projection for the fiscal year ending June 30, according to a Tuesday filing with the Australian bourse.
The health care services provider expects to incur goodwill and other asset impairment of AU$305 million for its UK segment, resulting in post-tax impact at the group level of AU$291 million in relation to its Elysium mental health services business.
It also penciled in an uncertain tax liability provision release of AU$64.5 million, or AU$34 million after minority interests, in relation to the acquisition of Ramsay Sante in 2015.
For the fiscal H1, the company expects earnings before interest and taxes excluding non-recurring items to range from AU$490 million to AU$500 million. Attributable net profit after tax (NPAT) excluding non-recurring items is forecast to be in the range of AU$150 million to AU$160 million.
As a result of the impairment, Ramsay no longer expects growth in NPAT and non-controlling interests from continuing operations during the fiscal year, per the filing.
Shares of Ramsay Health Care rose 3% in recent trade.
Price (AUD): $35.19, Change: $+0.95, Percent Change: +2.77%
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