LifeHC interim results 31 March 2015

Revenue increased by 14.1% to R7.1 billion (R6.2 billion). Operating profit decreased by 33.8% to R1.6 billion (R2.5 billion). Net attributable profit decreased by 54.1% to R832 million (R1.8 billion). In addition, headline earnings per lowered by 2.9% to 80.3cps (82.7cps).

The directors approved an interim gross cash dividend of 68 cents per ordinary share (2014: 63 cents per ordinary share) for the six months ending 31 March 2015.

LifeHC will continue to focus on its growth objectives in southern Africa, India and Poland. Over 170 new beds will be added in southern Africa in the next six months through 80 brownfield expansion beds and the addition of the 94 bed Life Hilton Private Hospital.

LifeHC's proposed acquisition of the 50 bed Lowveld Hospital has been terminated as per the seller's wishes, due to the slow approval process of the
Competition authorities.

Max will continue to grow revenue and improve EBITDA margins and is well positioned to take advantage of the rapidly developing private healthcare sector in India, leveraging off the existing base and growing by brownfield expansions, greenfield projects and through acquisitions.

In Poland LifeHC will continue to execute on its strategy of establishing a comprehensive network of facilities through the integration of the existing businesses, positioning the business to maximise growth in new national health contracts in 2016 and through exploring new acquisition opportunities.

In southern Africa, the pressure on costs will remain in light of the weakening of the rand exchange rate, wage expectations and other overhead costs but LifeHC will continue to focus on efficiency programmes to lessen the impact.

The quality management programme of LifeHC is a comprehensive, consistently applied and measured programme which benchmarks clinical interventions against international best practice with the aim of enhancing patient outcomes. In addition Life Healthcare recognises the shortage of healthcare skills and will continue to invest heavily in the training of doctors, nurses and pharmacists. The Competition Commission Market Inquiry into the healthcare sector will continue during the remainder of 2015.

2015-05-13 07:33:40