Cleopatra Hospital Company reported its consolidated results for 3Q17. Strong revenue growth, improved operational efficiency and cost controls saw net profit record 45% Y-o-Y and increase to EGP32mn. Revenue grew 38% Y-o-Y to EGP293mn, driven by higher patient volume and improved pricing. Management expects patient volume to continue growing further to year-end. Gross profit soared 51% Y-o-Y to EGP91mn, yielding 3pp expansion in GPM to 31.0%. Management attributed improved gross profitability to delivery of its revenue-retention and margin-enhancement strategies, while simultaneously leveraging its strong purchasing power and cross-asset consumables procurement programmes. EBITDA came in at EGP70mn in 3Q17, up 48% Y-o-Y, with a margin of 24% vs. 22% in 3Q16. In 9M17, revenue reached EGP817mn, up 30% Y-o-Y, while net profit recorded a 60% Y-o-Y increase to EGP85mn. Cleopatra has signed a definitive agreement to acquire a leading hospital in West Cairo, with finalisation pending the satisfaction of conditions precedent, expected to be finalised by year-end. The recently renovated 92-bed hospital includes an extension that will drive up capacity to 108 beds. It is also in advanced due diligence on a 170-bed hospital in a major city with high urban density one hour to the north of Cairo, with signing of definitive agreements expected prior to year-end. It intends on financing its inorganic growth programme from the IPO proceeds, ongoing capital increase through a tradable rights issue of EGP700mn, as well as cash generated internally from the business. In addition, Cleopatra signed an MoU to enter a joint venture brownfield hospital project in Beni Suef, a city one hour to the south of Cairo, which is expected to be operational in 2019 and add over 200 beds to the group’s capacity.