Afro-C final results June 2018
Healthcare service revenue increased to R3 billion (2017: R2.7 billion) and Healthcare retail revenue rose to R1.2 billion (2017: R1.1 billion). Profit before depreciation and amortisation grew by 36.3% to R679.2 million (2017: R498.2 million). Comprehensive net income attributable to Equity holders of the parent was 122.9% higher at R253.9 million (2017: R113.9 million). Furthermore, headline earnings per share was 47.06 cents per share (2017: 22.34 cents per share).
The board has pleasure in announcing that in addition to the interim gross dividend per ordinary share of 16 cents, a final gross dividend of 16 cents per ordinary share has been declared for the year ended 30 June 2018. Dividends are subject to Dividends Withholding Tax. The payment date for the dividend is 12 November 2018.
Notwithstanding the South African operating environment being burdened with several economic and political challenges, the Board is satisfied with AfroCentricĂs sound operating results for the year ended 30 June 2018. Good progress was made by all of the GroupĂs business units, in particular the growing divisional interests in supplementary medical specialities, including the groupĂs rapidly expanding pharmaceutical operations. The broad, but adverse commercial impact on consumer disposable incomes, compounded by the increases in medical costs, has not unexpectedly focused the attention of all healthcare stakeholders, that alternative models for more affordable healthcare delivery has become an imperative. The Group has recognised this state of affairs and references under Developments above, capture certain of the initiatives and strategic plans already introduced and being explored by the Group to address the value chain concept referred to therein. AfroCentric remains well positioned and well capitalised to continue on its progressive plans for expansion, rationalisation and synergistic acquisitions, to provide value for money services and long term compounding shareholder value.
Shareholders will be aware that AfroCentric acquired a 26% interest in Activo Health (Activo) as a component of the WAD Assets acquisitions in 2015. Shareholders are advised that agreement has been reached in principle with the Activo vendors to anticipate the exercise of the call option negotiated at the time, for the remainder of the shares in Activo (74%) not already owned by AfroCentric. The terms of the call option are substantially dictated by the valuation formulae and payment options provided for in the WAD Master Agreement. The acquisition is a related party transaction and is therefore subject inter alia, to the approval of AfroCentric shareholders in general meeting and an appropriate Circular with full details will be sent to shareholders, subject to all other contractual matters being concluded. Shareholders are therefore advised that should the terms of the exercise of the call option be successfully concluded, it may have an effect on AfroCentricĂs share price. Accordingly, shareholders are advised to exercise caution when dealing in the CompanyĂs securities until a further announcement in this regard is made.