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Mediclinic International plc
(Incorporated in England and Wales)
Company Number: 08338604
LSE Share Code: MDC
JSE Share Code: MEI
NSX Share Code: MEP
ISIN: GB00B8HX8Z88
LEI: 2138002S5BSBIZTD5I60
('Mediclinic', the 'Company', or the 'Group')
28 July 2022
2022 Annual General Meeting Statement and Trading Update
Following the online shareholder engagement event on Thursday 14 July 2022, Mediclinic, the
diversified international private healthcare services group, will today hold its 2022 Annual
General Meeting ('AGM') in London.
Guidance for the full year remains unchanged
During the first quarter of the financial year ended 31 March 2023 ('FY23'), the Group observed
relatively low COVID-19 hospital admissions with patient mix continuing to normalise towards
pre-pandemic levels. With pre-pandemic seasonality returning, patient volumes were also
impacted in the quarter due to patients and staff contracting COVID-19. Notwithstanding the
increased macro uncertainty since Mediclinic's 2022 Full-Year Results, guidance for FY23
remains unchanged.
Switzerland
In April and June 2022, inpatient volumes were impacted by holidays and the ongoing effects
of COVID-19-related disruptions. Additional staffing resources required to address COVID-19-
related staff absenteeism and general nurse shortages in the market added to overall employee
costs. Lower volumes and additional costs were partially offset by an encouraging insurance
mix and average revenue per inpatient.
Southern Africa
Bed days sold and patient case mix, including day case admissions, continued to normalise as
COVID-19 hospital admissions remained low, which negatively impacted overall revenue per
paid patient day. The impact on margins was limited as staffing requirements were adapted to
meet the changing patient mix.
Middle East
Patient activity in April 2022 was lower year-on-year due to the timing of Ramadan, but
momentum built steadily in May and June. Patient case mix also continued to normalise, similar
to the experience in Southern Africa. Record outpatient volumes in June preceded the quieter
summer period in the Middle East with eased travel restrictions, marking the first time since the
onset of the pandemic that seasonality is expected to return.
Cautionary Statement
This announcement contains certain forward-looking statements relating to the business of the
Company and its subsidiaries, including with respect to the progress, timing and completion of
the Group's development; the Group's ability to treat, attract and retain patients and clients; its
ability to engage consultants and healthcare practitioners and to operate its business and
increase referrals; the integration of prior acquisitions; the Group's estimates for future
performance and its estimates regarding anticipated operating results; future revenue; capital
requirements; shareholder structure; and financing. In addition, even if the Group's actual
results or development are consistent with the forward-looking statements contained in this
announcement, those results or developments may not be indicative of the Group's results or
developments in the future. In some cases, forward-looking statements can be identified by
words such as 'could', 'should', 'may', 'expects', 'aims', 'targets', 'anticipates', 'believes',
'intends', 'estimates', or similar. These forward-looking statements are based largely on the
Group's current expectations as of the date of this announcement and are subject to a number
of known and unknown risks and uncertainties and other factors that may cause actual results,
performance or achievements to be materially different from any future results, performance or
achievement expressed or implied by these forward-looking statements. In particular, the
Group's expectations could be affected by, among other things, uncertainties involved in the
integration of acquisitions or new developments; changes in legislation or the regulatory regime
governing healthcare in Switzerland, South Africa, Namibia and the United Arab Emirates
('UAE'); poor performance by healthcare practitioners who practise at its facilities; unexpected
regulatory actions or suspensions; competition in general; the impact of global economic
changes; the impact of pandemics, including COVID-19; the impact of military conflicts,
including the current events in the Ukraine; and the Group's ability to obtain or maintain
accreditation or approval for its facilities or service lines. In light of these risks and uncertainties,
there can be no assurance that the forward-looking statements made in this announcement will
in fact be realised and no representation or warranty is given as to the completeness or
accuracy of the forward-looking statements contained in this announcement.
The Group is providing the information in this announcement as of this date, and disclaims any
intention to, and makes no undertaking to, publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
FY23 Guidance
The following FY23 guidance statements set out in Mediclinic's 2022 Full-Year Results (the
'Profit Forecasts') are classed as profit forecasts for the purposes of the City Code on
Takeovers and Mergers:
'Expect increased client activity to drive further revenue growth, margin expansion and
improved earnings'
'In the year ahead, we expect to benefit from a continued increase in client activity
which will drive further improvement in our profitability and earnings.'
'In FY23, we expect a combination of volume growth and efficiency gains to continue
to drive the Group towards pre-pandemic profitability, alongside a meaningful
improvement in earnings.'
'The Group expects the positive momentum in revenue growth, margin improvement
and earnings of FY22 to continue in FY23, driven by increased client activity supported
by expected underlying economic growth in all three regions. Seasonal trends in patient
activity levels, most notably in Switzerland and the Middle East, are expected to return,
in the absence of any material new waves of COVID-19. Improving profitability and
strong cash generation are expected to support continued deleveraging.
Switzerland expects to deliver modest FY23 revenue growth and EBITDA margin
improvement to around 16%.
Southern Africa expects to deliver FY23 revenue growth in the mid-single digit
percentage range and an EBITDA margin improvement, approaching 20%.
The Middle East expects to deliver FY23 revenue growth in the high-single digit
percentage range and an EBITDA margin improvement approaching the mid-15%
range.'
Basis of preparation
The Profit Forecasts are based on the Group's current internal forecast for the remainder of the
year ending 31 March 2023.
The basis of accounting used for the Profit Forecasts is consistent with the Group's existing
accounting policies, which are in accordance with U.K. adopted International Accounting
Standards, IFRS as adopted by the EU and IFRS as issued by the IASB, were applied in the
preparation of the Group's financial statements for the year ending 31 March 2022 and are
expected to be applied in the preparation of the Group's financial statements for the year ending
31 March 2023. The divisional information has been prepared on the basis on local currencies
in each of the relevant divisions, being South African rand in Southern Africa, Swiss franc in
Switzerland and UAE dirham in the Middle East.
The Profit Forecasts have been prepared on the basis referred to above and subject to the
principal assumptions set out below. The Profit Forecasts are inherently uncertain and there
can be no guarantee that any of the factors referred to under 'Principal Assumptions' (Appendix
I) will not occur and/or, if they do, their effect on the Group's results of operations, financial
condition or financial performance, may be material. The Profit Forecasts should therefore be
read in this context and construed accordingly.
Directors' Confirmation
The Mediclinic Directors confirm that the Profit Forecasts remain valid and have been properly
compiled on the basis of the principal assumptions stated above and that the basis of
accounting used is consistent with Mediclinic's accounting policies as set out above.
About Mediclinic International plc
Mediclinic is a diversified international private healthcare services group, established in South
Africa in 1983, with divisions in Switzerland, Southern Africa (South Africa and Namibia) and
the Middle East.
The Group's core purpose is to enhance the quality of life.
Its vision is to be the partner of choice that people trust for all their healthcare needs.
Mediclinic is focused on providing specialist-orientated, multi-disciplinary services across the
continuum of care in such a way that the Group will be regarded as the most respected and
trusted provider of healthcare services by patients, medical practitioners, funders and
regulators of healthcare in each of its markets.
At 31 March 2022, Mediclinic comprised 74 hospitals, five subacute hospitals, two mental health
facilities, 20 day case clinics and 22 outpatient clinics. The Swiss operations included 17
hospitals and four day case clinics with around 1 900 inpatient beds; Southern Africa operations
included 50 hospitals (three of which in Namibia), five subacute hospitals, two mental health
facilities and 14 day case clinics (four of which operated by Intercare) across South Africa, and
around 8 650 inpatient beds; and the Middle East operated seven hospitals, two day case clinics
and 22 outpatient clinics with around 1 000 inpatient beds in the UAE. In addition, under
management contract the Middle East will open a 200-bed hospital in the Kingdom of Saudi
Arabia in 2023.
The Company's primary listing is on the London Stock Exchange ('LSE') in the United Kingdom,
with secondary listings on the JSE in South Africa and the Namibian Stock Exchange in
Namibia.
Mediclinic also holds a 29.9% interest in Spire Healthcare Group plc, a leading private
healthcare group based in the United Kingdom and listed on the LSE
For further information, please contact:
Investor Relations, Mediclinic International plc
James Arnold, Head of Investor Relations
ir@mediclinic.com
+44 (0)20 3786 8181
Media queries
FTI Consulting
Ben Atwell/Ciara Martin ' UK
+44 (0)20 3727 1000
Sherryn Schooling ' South Africa
+27 (0)21 487 9000
Registered address: 6th Floor, 65 Gresham Street, London, EC2V 7NQ, United Kingdom
Website: www.mediclinic.com
Corporate broker: Morgan Stanley & Co International plc and UBS Investment Bank
JSE sponsor (South Africa): Rand Merchant Bank (A division of FirstRand Bank Ltd)
NSX sponsor (Namibia): Simonis Storm Securities (Pty) Ltd
Appendix I ' Principal Assumptions
Factors outside the influence or control of the Mediclinic Directors for the year ending 31 March 2023:
' no material change to the Group's assumptions in the forecast period for patient
volumes and case mix as client activity normalises and fewer direct COVID-19-related
costs are incurred in line with COVID-19-related admissions receding;
' no adverse change in private healthcare market conditions or introduction of significant
disruptive innovation and digitalisation (including, but without limitation, in relation to
actions taken by the Group's competitors, insurance companies and healthcare
authorities);
' no changes in the Group's ability to attract patients, nurses and medical practitioners;
' no material changes to the Group's assumptions in the forecast period on the effects
of seasonality and public and school holidays affecting availability of patients, nurses
and medical practitioners;
' no change in client preferences for private healthcare that the Group is unable to
address through changes in its service offering;
' no adverse changes for the Group in supply chain costs and the availability of
consumables and supplies (for example, as a result of material supply chain
disruptions) and/or the Group's employee costs;
' There will be no adverse change to current prevailing global macroeconomic and
political conditions (including geopolitical tension, further escalation of conflict or war
in or affecting areas where the Group operates (or any sanctions imposed in
response to any such events)) which is material in the context of the Statements;
' no change in legislation or regulatory requirements relating to the Group or the
legislative or regulatory environment within which the Group operates;
' no change in general sentiment towards the Group and/or its operations which has an
impact on its ability to attract consultants and healthcare practitioners and to operate
its business and increase referrals;
' no business disruption affecting the Group, its customers, its supply chain or other
stakeholders (including, but without limitation, any COVID-19-related lockdowns and
restrictions, natural disasters, severe adverse weather, acts of terrorism, cyberattacks,
workforce shortages or labour disputes);
' there will be no litigation or contractual disputes which are material in the context of
the Group;
' there will be no material movements in foreign exchange rates compared with the
Group's estimates;
' no change in the Group's existing debt arrangements, or its ability to access external
financing; and
' no change in the accounting standards or policies which were used for the Profit
Forecast.
Factors within the influence or control of the Mediclinic Directors for the year ending 31 March 2023:
' no change to the strategy or operation of the Group's divisions;
' no deterioration in the Group's relationships with patients, nurses or medical
practitioners;
' no health and safety issues experienced by the Group;
' no unplanned capital expenditure or asset disposals conducted by or affecting the
Group;
' no significant acquisitions, disposals, developments, partnerships or joint venture
agreements will be entered into by the Group and no existing partnerships or joint
venture agreements will be terminated or amended, in each case, which have an
adverse impact on the Group's income or expenditure which is material in the context
of the Statements; and
' no change in key management of the Group;
in the case of each principal assumption, which is material in the context of the Profit Forecast.
Date: 28-07-2022 12:30:00
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