Revisiting RHC, for the second time in a week.
The problem for RHC. Here’s debt (much of it the AASB16 stuff, but still). Hefty.
And credit metrics…
Meanwhile, the lingering effects of the pandemic make it hard to run a hospital, and having a big business in the UK (finding nurses, managing the pound) makes for a difficult backdrop.
You can hope for a takeover, sure. But that just played out, to a horribly dissatisfying conclusion for all involved.
Difficult to know where the cashflows should sit. Don’t get us wrong, we are very interested, and this is just trying to sort out our thoughts. The UK business and new acquisitions add complexity apart from the familiar old Aussie centric business.
File under thinking out aloud.
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