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Ramsay Health Care (RHC) buys British mental healthcare provider

By Mensholong Lepcha

02:11, 13 December 2021

Ramsay Health Care logo on computer screen
The deal will be funded through Ramsay Health Care’s existing debt facilities – Photo: Shutterstock

Australia’s Ramsay Health Care on Monday announced the acquisition of UK-based mental healthcare provider Elysium Healthcare for a deal worth AUD1.4bn ($1bn).

“The acquisition of Elysium will expand Ramsay’s patient pathways into the £15bn UK mental health market at a time when more and more people are seeking support for mental health, learning difficulties and neurological issues,” said Craig McNally, chief executive of Ramsay Health Care.

The deal will be funded through Ramsay Health Care’s existing debt facilities and is expected to be completed in the first quarter of 2022, the company said.

Synergies of £5m per annum

Ramsay Health Care said the acquisition of Elysium is expected to deliver mid-single-digit earnings per share accretion in fiscal 2023 and synergies of at least £5m ($6.6m) per annum is expected from the deal.

For 12 months ended June 2021, Elysium reported an unaudited revenue of £349m and earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs of £65m.

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Mental health segment contributed 79% of Elysium’s revenue while rehabilitation and recovery, autism and epilepsy services under complex care contributed 10% of revenue. Neurological & Acquired Brain Injury segment contributed 11% of Elysium’s revenue.

Ramsay Health Care stock down on Monday

Ramsay Health Care said Elysium’s business revenue base is funded about 99% by public system payors.

On Monday, Ramsay Health Care stock fell over 1% to AUD68.74 by midday.

Read more: Will the US economy find balance in 2022?

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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