NMC Health backs FY guidance after share price slump

UAE-based healthcare operator NMC Health issued a statement on Thursday to reassure investors following the recent slump in its share price, insisting that it was trading in line with management expectations and backing its full-year guidance.

The company said that following a "good" performance in the first half of the year, the business remains in line with management expectations on all key metrics including revenue, EBITDA, net income, leverage, cash flow conversion and working capital.

"Full year guidance remains as previously stated," it said.

Shares of NMC fell sharply on Tuesday and Wednesday. Some traders said it was a tweet by US research firm Muddy Waters that prompted the drop.

Muddy Waters, which was founded by notorious short-seller Carson Block, tweeted on Tuesday that it would announce a new short position the following day, "on an accounting fiasco that's potentially insolvent".

Although it later transpired that the stock in question was litigation and risk management company Burford Capital, traders said some market participants had suspected it might be NMC.

At 1205 BST, the shares were up 5.2% at 2,104p.