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Trading statement for the twelve months ended 30 September 2021
LIFE HEALTHCARE GROUP HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2003/002733/06)
ISIN: ZAE000145892
Share Code: LHC
("Life Healthcare" or "the Group")
TRADING STATEMENT FOR THE TWELVE MONTHS ENDED 30 SEPTEMBER 2021
Life Healthcare is currently finalising its financial results for the twelve months ended
30 September 2021 (current period or FY2021), which are expected to be released on the
JSE Stock Exchange News Service (SENS) on or about Thursday, 18 November 2021.
In terms of paragraph 3.4 (b) of the JSE Listings Requirements, a listed company is required
to publish a trading statement as soon as it is satisfied that a reasonable degree of certainty
exists that the financial results for the period to be reported upon will differ by at least 20%
from those of the previous corresponding period.
This trading statement needs to be read in conjunction with the initial trading statement
released on SENS on 27 May 2021 and the voluntary trading update released on SENS, dated
13 October 2021.
The Group delivered a pleasing trading performance in the current period. The key highlights
were as follows:
• Strong recovery in overall performance across the Group in a continued COVID-19
environment.
• Strong volume growth within Alliance Medical Group (AMG) with volumes higher than
pre-COVID-19 levels in all major geographies, due to a rebound in demand as COVID-
19 restrictions were eased, as well as specific COVID-19-related contracts undertaken
during the current period. Revenue growth for FY2021 was 20%-22% higher (in British
pounds) than FY2020. The normalised EBITDA margin for AMG for the FY2021 was
c.24% compared to 20.9% for the twelve months ended 30 September 2021 (prior
period or FY2020).
• Continued sequential improvement across all the southern African operations
notwithstanding a significantly larger third COVID-19 wave impacting operations within
the current period. The southern African operations have delivered 9%-11% revenue
growth year-on-year for FY2021 with a 25%-27% increase in revenue for the H2-2021
period compared to H2-2020. The normalised EBITDA margin for the H2-2021 period
has improved to c.17% compared to 16.6% for the H1-2021 period and 8.5% for H2-
2020. The normalised EBITDA margin for southern Africa for the full year was c.17%
compared to 16.8% for FY2020.
• Group revenue has increased by 11-13% year-on-year for FY2021 while the Group
normalised EBITDA margin was c.19% versus 17.1% in FY2020.
• Cash generation within the Group remains strong and net debt to normalised EBITDA
has reduced to c.1.9x as at 30 September 2021 versus 2.96x at 30 September 2020.
EARNINGS PER SHARE (EPS), HEADLINE EARNINGS PER SHARE (HEPS) AND
NORMALISED* EARNINGS PER SHARE (NEPS)
Life Healthcare’s results for the current period are expected to show an increase of more than
100% in EPS from continuing and discontinued operations versus the loss of 6.4 cents
reported for the prior period. This is primarily due to the improved operational performance
across the Group, as well as the impact of the impairment of R793 million recognised in the
prior period relating to Scanmed S.A. (Scanmed) which reduced FY2020 EPS by 54.5 cents.
Earnings from continuing operations (excluding the impact of Scanmed) is expected to
improve by between 129% to 139% year-on-year.
Scanmed was disposed of during the current period, effective 26 March 2021, and was
classified as a discontinued operation during the current period. The profit from Scanmed of
R87 million (net of tax) positively impacted earnings during the current period (increasing EPS
by 6.0 cents).
We summarise the impact these factors had on our expected earnings for the current period
as follows:
Earnings per share (cents) FY2021 FY2020 % Change
(expected) (reported)
Weighted average number of shares (millions) 1 454 1 455 -0.1%
EPS from continuing operations 111 to 116 48.5 129% - 139%
EPS from continuing and discontinued^ operations 118 to 122 -6.4 n/a
HEPS from continuing and discontinued^ 108 to 112 48.7 121% - 130%
operations
NEPS* from continuing operations 107 to 111 58.3 83% - 90%
NEPS* from continuing and discontinued^ 109 to 114 61.0 79% - 87%
operations
^Scanmed was classified as a discontinued operation during the current period
*Normalised earnings is a non-IFRS measure which excludes non-trading related costs and income
Review of results
This trading statement is the responsibility of the directors and is based on financial
information which represents the Group´s latest financial estimates and has not been reviewed
or reported on by Life Healthcare´s external auditors.
For further information, please contact:
Mark Wadley, Head of Investor Relations
investor.relations@lifehealthcare.co.za
Rosebank
9 November 2021
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 09-11-2021 05:20:00
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