NMC third-quarter revenue beats target as healthcare provider prepares for new ownership

NMC Healthcare said its third-quarter revenue beat targets as the UAE’s biggest healthcare provider aims to exit administration and start operations under new ownership before the end of this year.

Gross revenue for the three months to the end of September for NMC’s UAE and Oman business reached $915 million, a 12 per cent annual rise from the $816m reported for the same period in 2020, the company said on Monday. Quarterly revenue was also 8 per cent ahead of the business plan for the July-September period.

The year-to-date number of patient visits across the group medical facilities reached 6.7 million, surpassing 3.7 million recorded for the same period in 2020.

In September, creditors of NMC Healthcare approved its deeds of company arrangement restructuring process, a move that allows the healthcare provider's 34 companies to exit administration.

NMC secured approval for its restructuring proposal from 95 per cent of its creditors. The companies that will exit administration in Abu Dhabi will continue to operate as the NMC Group’s core businesses, it said at the time.

The company, its creditors and advisers are now working on securing the final approvals for the completion of the restructuring and the group’s exit from administration by December 16, NMC said on Monday.

Joint administrators Alvarez & Marsal have been pushing creditors, who were owed more than $6.4 billion by NMC Healthcare, to agree to a restructuring of the business. The move would lead to $4bn of its debts being wiped in return for equity instruments under the Doca process.

Once the group companies exit administration, they will be owned by its creditors.

“We are looking forward to successfully delivering the new NMC Health out of administration to its new owners,” said Richard Fleming, managing director of Alvarez & Marsal Europe.

“It's been a long road and we have had to overcome many obstacles, but we are very grateful to all our stakeholders who have universally rallied behind the NMC team to make it happen.”

NMC Healthcare, which grew from a single clinic, ran into trouble after a 2019 report by short seller Muddy Waters accused the company of inflating its assets and understating its debt.

An independent investigation uncovered more than $4.4bn of previously unreported debt, leading to the company being placed into administration in April last year.

Earlier this year, NMC said it is selling Eugin (Luarmia and Boston IVF) to Fresenius Helios for an enterprise value of €430m ($525m). There are more NMC assets that could be sold off as the company seeks to offload non-core businesses to focus on operations in the UAE and Oman, Ben Cairns, Alvarez & Marsal's managing director for restructuring, said in August.

“We are now entering the finishing straight and need one last effort to pull together the final elements to get over the line,” Mr Fleming. “After significant operational and financial restructuring NMC is better placed than ever to take advantage of the new opportunities ahead.”