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MEDICLINIC INTERNATIONAL PLC - Mediclinic International plc - audited results for the year ended 31 March 2016 and proposed final dividend

Release Date: 25/05/2016 08:05
Code(s): MEI     PDF:  
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Mediclinic International plc - audited results for the year ended 31 March 2016 and proposed final dividend

Mediclinic International plc ("Mediclinic" or the "Company")
(Incorporated in England and Wales)
Company Number: 08338604
LSE Share Code: MDC
JSE Share Code: MEI
NSX Share Code: MEP
ISIN: GB00B8HX8Z88

MEDICLINIC INTERNATIONAL PLC REPORTS ITS AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2016 AND PROPOSED FINAL DIVIDEND

SUMMARY GROUP RESULTS FOR THE YEAR ENDED 31 MARCH 2016

(GBP million)                                                                                2016      2015   Variance
                                                                                                                     %
Revenue                                                                                     2 107     1 977         7%
EBITDA(1)                                                                                     382       406        (6%)
Underlying EBITDA(1)                                                                          428       403         6%
Operating profit                                                                              288       345       (17%)
Earnings(2)                                                                                   177       241       (27%)
Underlying earnings(1)                                                                        219       193        13%
Basic earnings per share, pence                                                              29.6      44.6       (34%)
Underlying basic earnings per share, pence(1)                                                36.7      35.8         3%
Dividend per share, pence*                                                                   7.90      9.33       (15%)
Net debt at the year end                                                                    1 536     1 353        14%

*The total dividend for the year ended 31 March 2016 in pound sterling comprises the proposed final dividend of 5.24 pence per share and the
equivalent interim dividend (adjusted for the 0.625 exchange ratio) of 2.66 pence per share, paid in December 2015 by Mediclinic International
Limited.

GROUP FINANCIAL AND OPERATING HIGHLIGHTS

Strong patient growth across all the operating platforms
Continued investments in patient experience and clinical quality initiatives
Successful completion of Mediclinic and Al Noor Combination and acquisition of 29.9% stake in Spire Healthcare Group
Solid financial performance with stable margins and good cash generation
Revenue growth of 7% with stable margins at 20.3% driving strong underlying earnings growth
Underlying basic earnings per share increased by 3% to 36.7 pence
Proposed final dividend per ordinary share of 5.24 pence

NOTES
1  See the reconciliations between the statutory and the non-GAAP earning measures in the financial review below.
2  Earnings refer to profit attributable to equity holders.

The Al Noor acquisition has been classified as a reverse takeover in terms of IFRS3. Since Mediclinic International Limited has been identified
as the acquirer, the comparative figures are those of Mediclinic International Limited's 2015 group results excluding Al Noor and are re-
presented in pounds sterling. Al Noor's results have been consolidated from the effective date of the acquisition (15 February 2016).

Group results are subject to movements in foreign currency exchange rates. Refer to the financial review below for exchange rates used to convert the operating
platforms' results to pound sterling.

Danie Meintjes, CEO of Mediclinic International, commented:

"We are pleased to announce trading for the year has been in line with management's expectations. The Group continues to deliver against its key
performance indicators with growth in patient activity across all platforms at stable margins. With the Al Noor transaction completing on 15
February, we are now focused on the smooth integration of the business.

We expect an increase in demand for cost-effective quality hospital services and increasingly complex clinical services to continue leading to
further volume growth. In line with industry trends, we are continuing to see the impact on our business of on-going regulatory initiatives and
increasing competition. We strive to differentiate ourselves from our peers in terms of our focus on patients, quality and safety. Leveraging on
our Group strength, our platform distribution and our combined knowledge will allow us to unlock further benefits for both patients and
shareholders."

For further information please contact:

Mediclinic International
Craig Tingle, Chief Financial Officer
Gert Hattingh, Group Services Executive
+27 (0)21 809 6500

Bell Pottinger
Liz Morley/Aarti Iyer
+44 (0)203 772 2468

Registered address: 1st Floor, 40 Dukes Place, London, EC3A 7NH, United Kingdom
Website: www.mediclinic.com
JSE sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited)
NSX sponsor: Simonis Storm Securities (Pty) Ltd

ABOUT MEDICLINIC

Mediclinic is an international private healthcare group with three operating platforms in Southern Africa (South Africa and Namibia), Switzerland
and the United Arab Emirates. Its core purpose is to enhance the quality of life of patients by providing acute care, specialist-orientated,
multi-disciplinary healthcare services. Mediclinic also holds a 29.9% interest in Spire Healthcare Group plc ("Spire"), a LSE listed and UK-based
private healthcare group.

During February 2016 the reverse takeover (the "Combination") by the Company (previously named Al Noor Hospitals Group plc), with operations
mainly in Abu Dhabi in the United Arab Emirates, by Mediclinic International Limited was completed. Mediclinic International Limited was a South
African based international private healthcare group founded in 1983 and listed on the JSE, the South African stock exchange, since 1986, with
operations in South Africa, Namibia, Switzerland and the United Arab Emirates (mainly in Dubai). The Combination resulted in the enlarged
Mediclinic group, renamed Mediclinic International plc comprising 73 hospitals and 45 clinics.

Today, Mediclinic Southern Africa operates 49 hospitals and 2 day clinics throughout South Africa and 3 hospitals in Namibia with more than 8 000
inpatient beds in total; Hirslanden operates 16 private acute care facilities and 4 clinics in Switzerland with more than 1 600 inpatient beds;
and Mediclinic Middle East operates 5 hospitals and 39 clinics with more than 700 inpatient beds in the United Arab Emirates.

Mediclinic puts science at the heart of its care approach, focusing on providing the best possible facilities with international-standard
technology, backed-up by sound medical expertise and the empathy of its nursing staff.

Mediclinic has a primary listing on the Main Market of the LSE, with secondary listings on the JSE in South Africa and the NSX in Namibia.

CAUTIONARY STATEMENT

This preliminary announcement contains certain forward-looking statements relating to the business of the Company and its subsidiaries
(collectively, the "Group"), 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 customers, its ability to engage consultants and GPs 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 preliminary announcement, those results or developments may not be indicative of
the Group's results or developments in the future. In some cases, you can identify forward-looking statements by words such as "could," "should,"
"may," "expects," "aims," "targets," "anticipates," "believes," "intends," "estimates," or similar words. These forward-looking statements are
based largely on the Group's current expectations as of the date of this preliminary 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 UAE and poor performance by healthcare practitioners
who practice at our facilities, unexpected regulatory actions or suspensions, competition in general, the impact of global economic changes, 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 preliminary 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 preliminary
announcement.

The Group is providing the information in this preliminary announcement as of this date, and we disclaim any intention or obligation to publicly
update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

ANALYST AND INVESTOR MEETING

There will be an analyst and investor meeting on Wednesday, 25 May 2016 at 09:00 BST Aldersgate, London, EC1A 4HD. A live audiocast of the
presentation will be available at 9am BST (10am SAST) on www.mediclinic.com.

https://secure.emincote.com/client/mediclinic/mediclinic003/

Enquiries:Aarti Iyer, Bell Pottinger
          +44 (0)203 772 2468 
          aiyer@bellpottinger.com

OPERATING REVIEW

The period under review was one of the most significant in Mediclinic's three-decade history.  Through the Combination of the businesses of
Mediclinic International Limited and the Al Noor Hospitals Group, we boosted our presence on an international scale, doubled the size of our UAE
business in a fast-growing market, and secured a listing as a FTSE 100 company on the London Stock Exchange.  With the investment in Spire
Healthcare, we also established a footprint in the dynamic UK healthcare markets.

Our financial performance for the year was good. Increased patient volumes in all our operating platforms led to overall revenue growth of 7% and
underlying EBITDA growth of 6%. This growth was supported by investments in selected capacity projects as well as new service lines. A strong
focus on efficiencies has ensured stable margins.

Overall, the developments during the period under review enabled us to accelerate progress against our strategic priorities, in all our key
markets. Our main strategic focus remains in ensuring high-quality care and optimal patient experience. To this end, we continue to invest
heavily in our people, their training, the facilities in which they work, and the technology they use. Our growing international scale also
enables us to unlock further value through promoting collaboration and best practice transfer between our operating platforms and to leverage the
benefits of scale through synergies and cost-efficiencies.

The 2016/17 financial year is set to be another exciting year for Mediclinic. Our number one priority is to stay focused on patients, and to
remain their demonstrable first choice.  Despite the uncertain economic environment, the market fundamentals remain sound, and we anticipate
continued capacity and footprint expansion at attractive returns across all of our operating platforms.  The Group is well positioned to deliver
long-term value to our shareholders - a well-balanced portfolio of operations, a leading position across a mix of attractive healthcare markets
and a strong management team at the helm.

OPERATIONS IN SWITZERLAND

HIRSLANDEN

Key highlights
Inpatient numbers increased by 4.9% and total revenue by 6%. Inpatient revenue per case increased by 0.5% as a result of increased case
complexity. Underlying EBITDA margin increased to 19.7% mainly as a result of cost-containment measures implemented during the year.

Financial performance
Mediclinic Switzerland contributed GBP101m (2015: GBP88m) to the Group's underlying earnings. Financial highlights include:
Revenue increased  by 8% from GBP1 044m to GBP1 130m
Underlying EBITDA increased  by 9% from GBP203m to GBP221m

In local currency:
Revenue increased by 6% from CHF1 563m to CHF1 657m
Underlying EBITDA increased by 7% from CHF303m to CHF325m
Underlying earnings increased by 12% from CHF132m to CHF148m

Projects and capital expenditure
During the period under review, Hirslanden invested GBP47m in expansion capital projects and new equipment and GBP51m on the replacement of existing
equipment. Projects concluded include the Lausanne Radiology Institute (IROL - Institut de radiologie de l'ouest lausannois), the radiology and
doctor office complex at Hirslanden Klinik Birshof, a hybrid operating theatre and outpatient surgical centre at Hirslanden Clinique Cecil, an
enlarged emergency unit, ICU and cath lab at Hirslanden Klinik Aarau and Praxiszentrum Düdingen  with an outpatient clinic with an integrated
radiology institute in Fribourg canton. Technology investments include new linear accelerators at Klinik Hirslanden and Hirslanden Klinik Aarau,
a surgical imaging system at Clinique La Colline, MRI's at Hirslanden Clinique Bois-Cerf and Hirslanden Klinik St. Anna and a CT scanner at
Klinik Hirslanden.

The number of inpatient beds increased from 1 655 to 1677 during the period under review with the opening on new beds at Hirslanden Klinik
Stephanshorn and Hirslanden Klinik Aarau.

Regulatory environment
The national outpatient tariff ("TARMED") is being revised and expected to be implemented in 2017 or 2018. The canton of Zurich is considering
cost saving measures which might in due course have an impact on private healthcare.

OPERATIONS IN SOUTHERN AFRICA

MEDICLINIC SOUTHERN AFRICA

Key highlights
Admissions increased by 1.3%, bed days sold by 2.9% and revenue per bed day by 6.3%. This resulted in total revenue growth of 9% in South African
rand. Underlying EBITDA margin increased to 21.4%

Financial performance
Mediclinic Southern Africa contributed GBP63m (2015: GBP63m) to the Group's underlying earnings. Financial highlights include:
Revenue declined by 6% from GBP691m to GBP649m
Underlying EBITDA declined by 5% from GBP147m to GBP139m

In local currency:
Revenue increased by 9% from R12 323m to R13 450m
Underlying EBITDA increased by 10% from R2 625m to R2 877m
Underlying earnings increased by 17% from R1 118m to R1 305m

Projects and capital expenditure
During the period under review, the Southern African operations spent GBP37m on expansion capital projects and new equipment and GBP15m on the
replacement of existing equipment.

The number of beds increased from 7 885 to 8 017 during the period under review. This comprised of the development of two new day clinics
(Mediclinic Limpopo Day Clinic and Mediclinic Durbanville Day Clinic) as well as the expansion of existing hospitals.

Regulatory environment
The South African Government is seeking to address the shortcomings of the public health system through the phased introduction of a National
Health Insurance system over the next 14 years. A White Paper outlining the financing and design of the envisaged system has been released for
consultation and Mediclinic will be submitting comprehensive comments.

The South African Competition Commission is currently undertaking a market inquiry into the private healthcare sector in South Africa to both
understand whether there are features of the sector that prevent, distort or restrict competition, and how competition in the sector can be
promoted.  The enquiry is due to publish its recommendations in December 2016.

OPERATIONS IN UNITED ARAB EMIRATES

MEDICLINIC MIDDLE EAST

Key highlights

The Al Noor business was acquired on 15 February 2016 and the financial results include Al Noor trading for this period. The operational
statistics below exclude the Al Noor business, except where otherwise stated due to the short period involved and the mid-month effective date.

Admissions increased by 3.0%, bed days occupied by 5.7% and outpatient and accident and emergencies attendance by 1.8%. This resulted in a
revenue increase of 8%. Al Noor revenue for the period was AED 258.7m (GBP50m).

Financial performance
Mediclinic Middle East contributed GBP57m (2015: GBP42m) to the Group's underlying earnings (including GBP5m contribution by Al Noor).

Excluding Al Noor the financial highlights include:
Revenue increased by 15% from GBP242m to GBP279m
Underlying EBITDA increased by 17% from GBP53m to GBP62m

In local currency:
Revenue increased by 8% from AED1 430m to AED1 544m
Underlying EBITDA increased by 11% from AED312m to AED345m
Underlying earnings increased by 15% from AED252m  to AED291m

Projects and capital expenditure
During the period under review, Mediclinic Middle East invested GBP30m in expansion capital projects and new equipment and GBP5m on the replacement
of existing equipment. The major component of the capex spend was on the Mediclinic City Hospital North Wing expansion.

The total number of beds in the group is now 721, comprising 371 beds in the Mediclinic Middle East facilities and 350 in the Al Noor group
facilities.

Regulatory environment
The regulatory environment in the UAE continues to be dynamic with major developments during the year being the rollout of mandatory health
insurance in Dubai as well as the announcement of a planned limited DRG inpatient tariff implementation during 2017.

BOARD CHANGES

After the successful completion of the Al Noor Combination, the newly formed Mediclinic International plc Board consists of the following
individuals:

Name                                                    Date of appointment
Ian Tyler                                               5 June 2013
Seamus Keating                                          5 June 2013
Dr Edwin Hertzog*                                       15 February 2016
Danie Meintjes*                                         15 February 2016
Craig Tingle*                                           15 February 2016
Jannie Durand*                                          15 February 2016
Alan Grieve*                                            15 February 2016
Prof Dr Robert Leu*                                     15 February 2016
Nandi Mandela*                                          15 February 2016
Trevor Petersen*                                        15 February 2016
Desmond Smith*                                          15 February 2016

*These directors were members of the Mediclinic International Limited Board prior to the Combination with Al Noor.

NEW CHIEF FINANCIAL OFFICER

Since the year end, Craig Tingle, Chief Financial Officer, announced his early retirement and will be leaving Mediclinic on 15 June 2016. On 11
May 2016 Mediclinic announced that Jurgens Myburgh will be appointed as Executive Director and Group Chief Financial Officer and will join the
Company effective 1 August 2016.

OVERVIEW AND OUTLOOK

Notwithstanding the on-going changes in the global and regional economies and the regulatory changes that continue to impact healthcare and its
affordability, we are continuing to see a strong demand for quality private healthcare services across our three operating platforms.

Mediclinic has continued to deliver strong revenue and profit growth. Our three operating platforms in Southern Africa, Switzerland and United
Arab Emirates have all achieved good growth in patient numbers and we continue to invest in buildings, technology and people to ensure we offer
high quality private healthcare service to both in and out patients.

At Hirslanden, given our high occupancy levels we anticipate modest growth at stable margins.

In Mediclinic Southern Africa, we expect continued growth, notwithstanding macro-economic challenges and increased competition anticipated in the
year ahead. In line with our key strategic initiatives we will continue to make additional investment in our operations to drive competitive
advantage.

In Mediclinic Middle East, following the Combination with Al Noor we expect to deliver continued strong growth supported by increased capacity
and beneficial underlying demographics. Successful integration of the business is well underway and cost synergies have been identified, which
will be partially offset by new project start-up costs and incremental operational investment.

We will continue to focus on our patients' needs by improving our value proposition in terms of technology, care and the latest improvements in
medicine and surgery. With three operating platforms and a significant investment in the UK, we can leverage best practice in terms of
experience, knowledge and skills. Mediclinic remains well positioned for future growth.

FINANCIAL REVIEW

Group revenue increased by 7% to GBP2 107m (2015: GBP1 977m) for the period under review.

Underlying operating profit before interest, tax, depreciation and amortisation ("underlying EBITDA") was 6% higher at GBP428m (2015: GBP403m) and
basic underlying earnings per share were 3% higher at 36.7 pence (2015: 35.8 pence).

Effective from 24 August 2015, the Group acquired a 29.9% shareholding in Spire. As Spire's financial year end is 31 December, the income from
associate was not recognised for the 3 months from January 2016 to March 2016. Underlying pro-forma earnings was adjusted to include the income
from associate for that period. Basic underlying pro-forma earnings per share were 5% higher at 37.5 pence (2015: 35.8 pence).

Underlying margins remained stable at 20.4%.

EARNINGS RECONCILIATION

                                                                    Total  Corporate  Switzerland  Southern Africa  Middle East  United Kingdom
2016 STATUTORY RESULTS                                              GBP'm      GBP'm        GBP'm            GBP'm        GBP'm           GBP'm

Revenue                                                             2 107          -        1 130              649          328               -
Operating profit                                                      288        (44)         165              109           58               -
Profit attributable to equity holders                                 177        (50)         113               53           55               6

RECONCILIATIONS

Operating profit                                                      288        (44)         165              109           58               -
Add back:
- Other gains and losses                                                1          1            -                -            -               -
- Depreciation                                                         93          -           63               20           10               -
EBITDA                                                                382        (43)         228              129           68               -

One-off and exceptional items:
Transaction cost (Al Noor acquisition)                                 41         41            -                -            -               -
Accelerated share-based payment charges                                10          -            -               10            -               -
Pre-acquisition Swiss tariff provision release                         (7)         -           (7)               -            -               -
Restructuring cost                                                      2          -            -                -            2               -
Underlying EBITDA                                                     428         (2)         221              139           70               -

Profit attributable to equity holders                                 177        (50)         113               53           55               6
One-off and exceptional items:                                         41         41            -                -            -               -
Tax                                                                     -          -            -                -            -               -
Accelerated share-based payment charges                                10          -            -               10            -               -
Tax                                                                     -          -            -                -            -               -
Pre-acquisition Swiss tariff provision release                         (7)         -           (7)               -            -               -
Tax                                                                     2          -            2                -            -               -
Restructuring cost                                                      2          -            -                -            2               -
Tax                                                                     -          -            -                -            -               -
Fair value gains on ineffective cash flow hedges                       (8)         -           (8)               -            -               -
Tax                                                                     1          -            1                -            -               -
Other gains and losses                                                  1          1            -                -            -               -
Tax                                                                     -          -            -                -            -               -
Underlying earnings                                                   219         (8)         101               63           57               6
Weighted average number of shares (millions)                        598.4
Underlying earnings per share (pence)                                36.7

                                                                    Total  Corporate  Switzerland  Southern Africa  Middle East  United Kingdom
2015 STATUTORY RESULTS                                              GBP'm      GBP'm        GBP'm            GBP'm       GBP'm            GBP'm
Revenue                                                             1 977          -        1 044              691          242               -
Operating profit                                                      345          2          161              137           45               -
Profit attributable to equity holders                                 241          2          124               73           42               -

RECONCILIATIONS                                                                                                                               -
Operating profit                                                      345          2          161              137           45               -
Add back:                                                                                                                                     -
- Other gains and losses                                              (24)        (2)         (13)              (9)           -               -
- Depreciation                                                         85          -           55               22            8               -
EBITDA                                                                406          -          203              150           53               -

One-off and exceptional items:                                                                                                                -
Impairment of property and equipment                                    2          -            -                2            -               -
Profit on sale of property, equipment and vehicles                     (5)         -            -               (5)           -               -
Underlying EBITDA                                                     403          -          203              147           53               -

Profit attributable to equity holders                                 241          2          124               73           42               -
One-off and exceptional items:                                                                                                                -
Impairment of property                                                  2          -            -                2            -               -
Tax                                                                     -          -            -                -            -               -
Insurance proceeds                                                     (9)         -            -               (9)           -               -
Tax                                                                     1          -            -                1            -               -
Gain on disposal of subsidiary                                         (2)         -           (2)               -            -               -
Tax                                                                     -          -            -                -            -               -
Profit on disposal of property, equipment and vehicles                 (5)         -            -               (5)           -               -
Tax                                                                     1          -            -                1            -               -
Realised gain on foreign currency forward contract                     (2)        (2)           -                -            -               -
Tax                                                                     -          -            -                -            -               -
Ineffective cash flow hedges                                           19          -           19                -            -               -
Tax                                                                    (4)         -           (4)               -            -               -
Swiss tax rate charges relating to prior years                        (40)         -          (40)               -            -               -
Tax                                                                     -          -            -                -            -               -
Discount on loan repayment                                            (11)         -          (11)               -            -               -
Tax                                                                     2          -            2                -            -               -
Underlying earnings                                                   193          -           88               63           42               -
Weighted average number of shares (millions)                        540.3
Underlying earnings per share (pence)                                35.8


The current Group results include the following exceptional and one-off items which were adjusted to determine underlying earnings:

One-off transaction costs of GBP41m (GBP41m after tax) relating to the Al Noor acquisition. The transaction cost is mainly comprised of advisor fees
and South African securities transfer tax.

A one-off non-cash IFRS 2 accelerated share-based payment charge of GBP10m (GBP10m after tax) relating to employee share trusts for Southern African
employees.

After the announcement of the proposed Mediclinic/Al Noor Combination, the trustees of the employee trusts and the relevant participating
employer companies agreed to accelerate the vesting of the underlying assets of the trusts to the beneficiaries and to close down the trusts. The
underlying shares were sold in two book building exercises previously announced in December 2015 and January 2016.

GBP7m (GBP5m after tax) was released in respect of a pre-acquisition Swiss tariff provision. When Mediclinic acquired the Hirslanden business in
2007, a provision relating to a specific tariff dispute was included in the opening accounts. After lengthy judicial processes and a court ruling
in the 2013 financial year an increased provision was made which was excluded in the measurement of underlying performance for the year. The
dispute has now been finally settled and the balance of the provision released. Given that the exceptional charge was adjusted from underlying
earningsin 2013, its release has been treated consistently by being excluded from underlying earnings in 2016.

GBP8m (GBP7m after tax) mark-to-market fair value gain, relating to the ineffective Swiss interest rate swaps. The group uses floating-to-fixed
interest rate swaps on certain loan agreements to hedge against interest movements which have the economic effect of converting floating rate
borrowings to fixed rate borrowings. The group applies hedge accounting and therefore fair value adjustments are booked to the consolidated
statement of comprehensive income.

With the removal of the Swiss franc/euro peg during January 2015 and the introduction of negative interest rates in Switzerland, the Swiss
interest rate hedges became ineffective once Libor is below zero as bank funding at Libor plus relevant margins is subject to a zero rate Libor
floor. Effective from 1 October 2014, the mark-to -market movements are charged to the income statement. As these are non-cash flow items and to
provide balanced operational reporting the group excluded the charge in the measurement of underlying performance in the 2015 financial year and
consistently excludes the gain arising this year. The swaps expire in 2017 and 2018.

Al Noor post acquisition restructuring costs of GBP2m.

Loss of GBP1m on foreign currency forward contracts.

Foreign exchange rates
Although the Group reports its results in pound sterling, the underlying operation segments earnings are generated in Swiss franc, UAE dirham and
the South African rand. Consequently, movement in exchange rates affected the reported earnings and reported balances in the statement of
financial position. The impact of a 10% change in the GBP/South African rand exchange rates for a sustained period of one year is: profit for the
year would increase/decrease by GBP7m (2015: increase/decrease by GBP10m) due to exposure to the GBP/South African Rand exchange rate.

During the period under review, the average exchange rates were the following:

                                                                                                                      2016  Variance       2015
Average rates:
GBP/Swiss franc                                                                                                       1.47     (2.0%)      1.50
GBP/UAE dirham                                                                                                        5.54     (6.4%)      5.92
GBP/South African rand                                                                                               20.73     16.3%      17.82

Period end rates:
GBP/Swiss franc                                                                                                       1.38     (4.2%)      1.44
GBP/UAE dirham                                                                                                        5.28     (2.8%)      5.43
GBP/South African rand                                                                                               21.21     17.7%      18.02


Mediclinic / Al Noor Combination
The Combination became effective on 15 February 2016. The results of Al Noor have been consolidated from that date. The integration of Al Noor is
on-going and the performance until now is in line with expectations.

The fair value exercise over the opening balance sheet of Al Noor remains provisional at 31 March 2016 as permitted by IFRS 3.  
Since the Group is in discussions with UAE medical insurance funders and other third parties about conforming Al Noor’s commercial 
practices with the rest of the Group, there is still a degree of uncertainty about the fair value of certain acquired assets and liabilities.  
This is expected to be finalised during the next year. 

Cash flow
The Group continued to deliver strong cash flow. The Group converted 96% (2015: 109%) of underlying EBITDA into cash generated from operations.
Cash and cash equivalents increased from GBP265m to GBP305m.

Interest-bearing borrowings
Interest-bearing borrowings increased from GBP1 618m to GBP1 841m. The increase is mainly because of the bridge facility which was utilised to fund
the tender offer to Al Noor Hospitals Group plc shareholders. The refinancing of the bridge is underway and details will be provided on
conclusion thereof.


                                                                                                                                 2016      2015
                                                                                                                                GBP'm     GBP'm
Interest-bearing                                                                                                                1 841     1 618
Less: cash and cash equivalents                                                                                                  (305)     (265)
Net debt                                                                                                                        1 536     1 353

Total equity                                                                                                                    3 570     1 840
Debt-to-equity capital ratio                                                                                                      0.4       0.7

Assets
Intangible assets increased from GBP642m at 31 March 2015 to GBP1 927m at 31 March 2016 mainly because of the goodwill recognised in respect of the
Al Noor acquisition.

Tax
The Group's effective tax rate was increased from 4.3% to 22.4%. In the prior year, the tax rate was impacted by the release of GBP43m Swiss income
tax liabilities in relation to historic uncertain tax positions. For the period under review, the transaction cost relating to the Al Noor
Combination was non-deductible for tax purposes and this had a tax effect of GBP10m. Furthermore, the non-deductibility of the accelerated IFRS 2
charges affected the tax charge by GBP3m.

Weighted average number of shares adjustment
During the period under review, shares were issued at a discount. As required by the accounting standards (IAS 33 paragraph 26), an adjustment
was made to the weighted average number of shares in issue for the current and the prior year. Basic earnings per share for the prior year was
adjusted and decreased by 1.1 pence from 45.7 pence to 44.6 pence and basic underlying earnings per share for the prior year decreased by 0.8
pence from 36.6 to 35.8 pence.

Underlying non-IFRS financial measures
The Group uses underlying income statement reporting as non-IFRS measures in evaluating performance and as a method to provide shareholders with
clear and consistent reporting.

The Group's non-IFRS measures are intended to remove from reported earnings volatility associated with the following types of one-off income and
charges:
restructuring provisions;
- profit/loss on sale of significant assets;
- past service cost charges / credits in relation to pension fund conversion rate changes;
- significant prior year tax and deferred tax adjustments;
- accelerated IFRS 2 charges;
- significant tariff provision charges / releases;
- mark-to-market fair value gains / losses, relating to ineffective interest rate swaps;
- significant impairment charges;
- significant insurance proceeds; and
- significant transaction costs incurred during acquisitions.

The Group has consistently applied this definition of underlying measures as it has reported on its financial performance in the past as the
directors believe this additional information is important to allow shareholders to better understand the Group's trading performance for the
year. It is the Group's intention to continue to consistently apply this definition in the future.

INVESTMENT IN ASSOCIATE AND CORPORATE EXPENDITURE

On 24 August 2015, the Group acquired a 29.9% shareholding in Spire for GBP447m. The investment in Spire contributed GBP6m to the Group's underlying
earnings.

In addition, corporate expenditure was incurred amounting to GBP8m, of which GBP6m relates to the finance charges in respect of the bridge facility.

DIVIDEND POLICY AND DIVIDEND

Following the completion of the Combination of Mediclinic International Limited and Al Noor, the Board has reviewed and amended the dividend
policy to target a pay-out ratio of between 25% and 30% of underlying earnings. The Board may revise the policy from time to time.

Shareholders on the South African register will be paid the ZAR cash equivalent of 119.5244 cents (101.59574 cents net of
dividend withholding tax) per share. The ZAR cash equivalent has been calculated using the following exchange rate: £1:
ZAR 22.81, being the 5 day average ZAR/GBP exchange rate at 3:00pm GMT Bloomberg.

Shareholders on the South African register will be paid the ZAR cash equivalent of 119.52 cents per share. The ZAR cash equivalent has been
calculated using the following exchange rate: GBP1: ZAR 22.81,being the 5 day average ZAR/GBP exchange rate at 3:00pm GMT Bloomberg.

The final dividend will be paid on Friday, 25 July 2016 to all ordinary shareholders who are on the register of members at the close of business
on the record date of Friday, 17 June 2016.

The salient dates for the dividend will be as follows:
Dividend announcement date                              Wednesday, 25 May 2016
Last date to trade cum dividend (SA register)           Thursday, 9 June 2016
First date of trading ex-dividend: SA                   Friday, 10 June 2016
First date of trading ex-dividend: UK                   Thursday, 16 June 2016
Record date                                             Friday, 17 June 2016
AGM approval                                            Wednesday, 20 July 2016
Payment date                                            Monday, 25 July 2016

No dematerialisation or rematerialisation within Strate and no transfers between the UK and SA registers may take place between Friday, 10 June
2016 and Friday, 17 June 2016, both dates inclusive.

By order of the Board.


Danie Meintjes                                          Craig Tingle
Chief Executive Officer                                 Chief Financial Officer

25 May 2016


CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 March 2016

                                                                                                                                   GROUP
                                                                                                                          (Restated)  (Restated)
                                                                                                                  2016         2015        2014
                                                                                                 Notes           GBP'm        GBP'm       GBP'm
ASSETS
Non-current assets                                                                                               5 604        3 654       3 368
Property, equipment and vehicles                                                                                 3 199        2 985       2 817
Intangible assets                                                                                                1 927          642         523
Equity accounted investments                                                                         3             455            4           4
Other investments and loans                                                                                          4            5           4
Receivables                                                                                                          2            -           -
Derivative financial instruments                                                                                     1            1           3
Deferred income tax assets                                                                                          16           17          17

Current assets                                                                                                     945          742         637
Inventories                                                                                                         75           60          51
Trade and other receivables                                                                                        561          415         384
Current income tax assets                                                                                            2            2           2
Derivative financial instruments                                                                                     2            -           -
Cash and cash equivalents                                                                                          305          265         200
Total assets                                                                                                     6 549        4 396       4 005

EQUITY
Capital and reserves
Share capital                                                                                        4              74          994         821
Share premium reserve                                                                                4             690            -           -
Treasury shares                                                                                      4              (2)         (23)        (22)
Retained earnings                                                                                    5           5 320          485         321
Other reserves                                                                                    4, 6          (2 573)         323         268
Attributable to equity holders of the Company                                                                    3 509        1 779       1 388
Non-controlling interests                                                                                           61           61          51
Total equity                                                                                                     3 570        1 840       1 439

LIABILITIES
Non-current liabilities                                                                                          2 192        2 114       2 096
Borrowings                                                                                           7           1 524        1 550       1 630
Deferred income tax liabilities                                                                                    446          429         412
Retirement benefit obligations                                                                                     179           87          34
Provisions                                                                                                          24           22          18
Derivative financial instruments                                                                                    19           26           2

Current liabilities                                                                                                787          442         470
Trade and other payables                                                                                           431          335         288
Borrowings                                                                                           7             317           68          95
Provisions                                                                                                          19           24          20
Retirement benefit obligations                                                                                       9            1           1
Derivative financial instruments                                                                                     1            1           -
Current income tax liabilities                                                                                      10           13          66

Total liabilities                                                                                                2 979        2 556       2 566

Total equity and liabilities                                                                                     6 549        4 396       4 005

These consolidated financial statements and the accompanying notes were approved for issue by the Board of Directors on 25 May 2016 and were
signed on its behalf by:

D Meintjes
Chief Executive Officer
CI Tingle
Chief Financial Officer


CONDENSED CONSOLIDATED INCOME STATEMENT
for the year ended 31 March 2016
                                                                                                                                  GROUP
                                                                                                                                    (Restated)
                                                                                                                             2016        2015
                                                                                                            Notes           GBP'm       GBP'm
Revenue                                                                                                                     2 107       1 977
Cost of sales                                                                                                              (1 264)     (1 184)
Administration and other operating expenses                                                                                  (554)       (472)
Other gains and losses                                                                                                         (1)         24
Operating profit                                                                                                              288         345
Finance income                                                                                                                  9           6
Finance cost                                                                                                    9             (58)        (85)
Share of profit of equity accounted investments                                                                                 6           -
Profit before tax                                                                                                             245         266
Income tax expense                                                                                             10             (55)        (12)
Profit for the year                                                                                                           190         254

Attributable to:
Equity holders of the Company                                                                                                 177         241
Non-controlling interests                                                                                                      13          13
                                                                                                                              190         254

Earnings per ordinary share attributable to the equity holders of the Company - pence
Basic                                                                                                          11            29.6        44.6
Diluted                                                                                                        11            29.5        43.8

         
Profit for the year                                                                                                           190         254

Other comprehensive income
Items that may be reclassified to the income statement
Currency translation differences                                                                                               92          59
Fair value adjustment - cash flow hedges                                                                                        2          (5)
                                                                                                                               94          54
Items that may not be reclassified to the income statement
Actuarial gains and losses                                                                                                    (56)        (31)

Other comprehensive income, net of tax                                                                                         38          23

Total comprehensive income for the year                                                                                       228         277

Attributable to:
Equity holders of the Company                                                                                                 224         264
Non-controlling interests                                                                                                       4          13
                                                                                                                              228         277

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2016


                                                                              Capital redemption         Share premium          Reverse acquisition                                              Share-based               
                                                               Share capital            reserve                reserve                      reserve             Treasury shares              payment reserve 
                                                                     (note 4)           (note 4)               (note 4)                     (note 4)                    (note 4)                    (note 6)
                                                                       GBP'm              GBP'm                  GBP'm                        GBP'm                       GBP'm                       GBP'm
Balance at 31 March 2014 (restated in GBP)                               821                  -                      -                            -                        (21)                          13

Profit for the year                                                        -                  -                      -                            -                          -                            -
Other comprehensive income/(loss) for the year                             -                  -                      -                            -                          -                            -
Total comprehensive income for the year                                    -                  -                      -                            -                          -                            -

Shares issued                                                            177                  -                      -                            -                          -                            -
Share issue costs                                                         (4)                 -                      -                            -                          -                            -
Treasury shares purchased (Forfeitable Share Plan)                         -                  -                      -                            -                         (1)                           -
Share-based payment expense                                                -                  -                      -                            -                          -                            1
Transactions with non-controlling shareholders                             -                  -                      -                            -                          -                            -
Dividends paid                                                             -                  -                      -                            -                          -                            -
Balance at 31 March 2015 (restated in GBP)                               994                  -                      -                            -                        (22)                          14

Profit for the year                                                        -                  -                      -                            -                          -                            -
Other comprehensive income/(loss) for the year                             -                  -                      -                            -                          -                            -
Total comprehensive income for the year                                    -                  -                      -                            -                          -                            -

Shares issued (August 2015)                                              479                  -                      -                            -                          -                            -
Share issue costs (August 2015)                                           (4)                 -                      -                            -                          -                            -
Reverse acquisition                                                   (1 402)                 6                  4 862                       (3 014)                         -                            -
Share subscription (February 2016)                                         7                  -                    593                            -                          -                            -
Reduction of share premium                                                 -                  -                 (4 765)                           -                          -                            -
Utilised by the Mpilo Trusts                                               -                  -                      -                            -                         21                            -
Treasury shares purchased (Forfeitable Share Plan)                         -                  -                      -                            -                         (1)                           -
Share-based payment expense                                                -                  -                      -                            -                          -                           10
Transactions with non-controlling shareholders                             -                  -                      -                            -                          -                            -
Dividends paid                                                             -                  -                      -                            -                          -                            -
Balance at 31 March 2016                                                  74                  6                    690                       (3 014)                        (2)                          24



                                                                                                                                                                 GROUP
                                                            Foreign currency                                                                                                  
                                                         translation reserve    Hedging reserve      Retained earnings                 Shareholders'           Non-controlling                        Total
                                                                     (note 6)          (note 6)               (note 5)                       equity                  interests                       equity
                                                                       GBP'm              GBP'm                  GBP'm                        GBP'm                      GBP'm                        GBP'm
Balance at 31 March 2014 (restated in GBP)                               247                  7                    321                        1 388                         51                        1 439

Profit for the year                                                        -                  -                    241                          241                         13                          254
Other comprehensive income/(loss) for the year                            59                 (5)                   (31)                          23                          -                           23
Total comprehensive income for the year                                   59                 (5)                   210                          264                         13                          277

Shares issued                                                              -                  -                      -                          177                          -                          177
Share issue costs                                                          -                  -                      -                           (4)                         -                           (4)
Treasury shares purchased (Forfeitable Share Plan)                         -                  -                      -                           (1)                         -                           (1)
Share-based payment expense                                                -                  -                      -                            1                          -                            1
Transactions with non-controlling shareholders                             -                  -                      1                            1                          4                            5
Dividends paid                                                             -                  -                    (47)                         (47)                        (7)                         (54)
Balance at 31 March 2015 (restated in GBP)                               306                  2                    485                        1 779                         61                        1 840
                                                                                                                                                  -                                                       -
Profit for the year                                                        -                                       177                          177                         13                          190
Other comprehensive income/(loss) for the year                           101                  2                    (56)                          47                         (9)                          38
Total comprehensive income for the year                                  101                  2                    121                          224                          4                          228

Shares issued (August 2015)                                                -                  -                      -                          479                          -                          479
Share issue costs (August 2015)                                            -                  -                      -                           (4)                         -                           (4)
Reverse acquisition                                                        -                  -                     (6)                         446                          -                          446
Share subscription (February 2016)                                         -                  -                      -                          600                          -                          600
Reduction of share premium                                                 -                  -                  4 765                            -                          -                            -
Utilised by the Mpilo Trusts                                               -                  -                      -                           21                          -                           21
Treasury shares purchased (Forfeitable Share Plan)                         -                  -                      -                           (1)                         -                           (1)
Share-based payment expense                                                -                  -                      -                           10                          -                           10
Transactions with non-controlling shareholders                             -                  -                      3                            3                          3                            6
Dividends paid                                                             -                  -                    (48)                         (48)                        (7)                         (55)
Balance at 31 March 2016                                                 407                  4                  5 320                        3 509                         61                        3 570




CONDENSED CONSOLIDATED SUMMARISED STATEMENT OF CASH FLOWS
for the year ended 31 March 2016
                                                                                                                            GROUP
                                                                                                                                    (Restated)
                                                                                                                       2016              2015
                                                                                                                      GBP'm             GBP'm
                                                                                                 Notes      Inflow/(outflow)  Inflow/(outflow)

Cash flow from operating activities
Cash received from customers                                                                                          2 078             1 980
Cash paid to suppliers and employees                                                                                 (1 667)           (1 540)
Cash generated from operations                                                                                          411               440
Interest received                                                                                                         9                 6
Interest paid                                                                                                           (55)              (57)
Tax paid                                                                                                                (45)              (52)
Net cash generated from operating activities                                                                            320               337

Cash flow from investment activities                                                                                 (1 549)             (257)
Investment to maintain operations                                                                                       (72)              (68)
Investment to expand operations                                                                                        (114)             (124)
Business combinations                                                                                                   (17)              (81)
Al Noor Hospitals Group plc shares repurchased                                                                         (530)                -
Special dividend to existing Al Noor Hospitals Group plc shareholders                                                  (383)                -
Proceeds on disposal of property, equipment and vehicles                                                                  1                 5
Disposal of subsidiary                                                                                                    -                 3
Acquisition of investment in associate                                                                                 (446)                -
Dividends received from equity accounted investment                                                                       2                 -
Proceeds from money market fund                                                                                          10                 -
Insurance proceeds                                                                                                        -                 9
Loans advanced                                                                                                            -                (1)
Net cash (utilised)/generated before financing activities                                                            (1 229)               80

Cash flow from financing activities                                                                                   1 242               (23)
Proceeds of shares issued                                                                                               479               177
Share issue costs                                                                                                        (4)               (4)
Share subscription (February 2016)                                                                                      600                 -
Distributions to non-controlling interests                                                                               (7)               (7)
Distributions to shareholders                                                                                           (48)              (47)
Proceeds from borrowings                                                                                                302               279
Repayment of borrowings                                                                                                 (85)             (417)
Refinancing transaction costs                                                                                            (6)               (7)
Settlement of Al Noor Hospitals Group plc share option scheme                                                            (2)                -
Shares purchased (Forfeitable Share Plan)                                                                                (1)               (1)
Proceeds from disposal of treasury shares                                                                                12                 -
Acquisition of non-controlling interest                                                                                  (2)                -
Proceeds on disposal of non-controlling interest                                                                          4                 4

Net increase in cash and cash equivalents                                                                                13                57
Opening balance of cash and cash equivalents                                                                            265               198
Exchange rate fluctuations on foreign cash                                                                               27                10
Closing balance of cash and cash equivalents                                                                            305               265


CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1 BASIS OF PREPARATION

The condensed consolidated financial statements included in the preliminary results announcement for the year ended 31 March 2016 have been
extracted from the full Annual Report which was approved by the Board of Directors on 25 May 2016. The consolidated financial statements within
the full Annual Report are prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union
('EU'), the Companies Act 2006 and Article 4 of the EU IAS Regulations.

The auditor's report on those consolidated financial statements was unqualified, did not draw attention to any matters by way of emphasis
without qualifying their report, and did not contain statements under section 498(2) or 498(3) of the Companies Act 2006. The preliminary results
do not comprise statutory accounts within the meaning of section 434(3) of the Companies Act 2006. The Annual Report for the year ended 31 March
2016 will be delivered to the Registrar of Companies following the Company's annual general meeting to be held on 20 July 2016.

Following the combination of Al Noor Hospitals Group plc and Mediclinic International Limited on 15 February 2016, the comparatives relate to
the consolidated results of Mediclinic International Limited, previously a South African registered group listed on the Johannesburg Stock
Exchange and the auditor's report on those financial statements was unqualified. The combination has been accounted for as a reverse acquisition
by the Group.

The condensed consolidated financial statements included in this preliminary announcement do not itself contain sufficient information to comply
with IFRS. The Company will publish full financial statements that comply with IFRS in June 2016.

This preliminary results announcement has been prepared applying consistent accounting policies to those applied by the Group in the comparative
period, except as described below. The Group has prepared the consolidated financial statements on a going concern basis.

Functional and presentation currency
The financial statements and financial information are presented in pound sterling, rounded to the nearest million. The functional currency of
the majority of the Group's entities, and the currencies of the primary economic environments in which they operate, is the South African rand,
Swiss franc and United Arab Emirates dirham. The United Arab Emirates dirham is pegged against the United States dollar at a rate of 3.6725 per
US Dollar. Due to the reverse acquisition which occurred during the financial year, the Group's presentation currency changed from the South
African rand in 2015 to pound sterling in 2016.  A change in presentational currency is a change in accounting policy which is accounted for
retrospectively.  Financial information reported in rand in the prior year's financial statements has been translated to sterling using the
procedures outlined below:
- Assets and liabilities were translated at the closing sterling rates;
- Income and expenses were translated at average sterling exchange rates; and
- Differences resulting from retranslation have been recognised in the foreign currency translation reserve.

The comparative numbers have been restated for the change in presentation currency.

Within the consolidated income statement certain line items were reclassified for the year ended 31 March 2015.  The reclassifications had no
impact on the reported profit or net asset measures of the Group.

The following reclassifications have been made to the consolidated income statement:
1) The mark-to-market loss of GBP19m relating to the ineffective cash flow hedge has been reclassified from other gains of losses to finance cost
as the ineffective portion of the hedge should match the classification of the hedged item.
2) Operating profit includes other gains of GBP24m. Previously it was shown below operating profit to present the income statement by function in
terms of IAS 1.
3) Depreciation and amortisation of GBP68m and GBP17m has been included in cost of sales and administration and other operating expenses
respectively in order to present the income statement by function in terms of IAS1.

The following reclassification has been made to the statement of financial position:
The UAE end of service benefit obligation of GBP15m was reclassified from provisions to retirement benefit obligations

The table below shows the impact on the consolidated income statement and statement of financial position:

Financial statement line item                                                                  2015 figures                      2015 figures
                                                                                               as presented                      as presented 
                                                                                                   in prior                        in current 
                                                                                                       year  Reclassification            year

Consolidated income statement

Cost of sales                                                                                       (1 116)              (68)         (1 184)
Administration and other operating expenses                                                           (455)              (17)           (472)
Other gains and losses                                                                                   5                19              24
Depreciation and amortisation                                                                          (85)               85               -
Finance cost                                                                                           (66)              (19)            (85)
Effect on profit before tax                                                                         (1 717)                -          (1 717)

Consolidated statement of financial position

Retirement benefit obligations                                                                          72                15              87
Provisions                                                                                              37               (14)             23
Non current liabilities                                                                                109                 1             110
Provisions                                                                                              24                (1)             23
Current liabililties                                                                                    24                (1)             23
Total liabilities                                                                                      133                 -             133


2 GOING CONCERN

Having assessed the principal risks and the other matters discussed in connection with the viability statement, the directors considered it
appropriate to adopt the going concern basis of accounting in preparing the financial statements.


3 EQUITY ACCOUNTED INVESTMENTS
                                                                                                                                 GROUP
                                                                                                                           2016         2015
                                                                                                                          GBP'm        GBP'm
Investment in associates                                                                                                    452            -
Investment in joint venture                                                                                                   3            4
                                                                                                                            455            4
Investment in associates:  
Listed investments                                                                                                          451            -
Unlisted investments                                                                                                          1            -
                                                                                                                            452            -
Reconciliation of carrying value at the beginning and end of the period

Listed investment
Total cost of equity investment                                                                                             447            -
Share of profit of associated companies                                                                                       6            -
Dividends received from associated companies                                                                                 (2)           -
                                                                                                                            451            -
Set out below are details of the associate which is material to the group:
Name of entity                       Country of incorporation and place of business            % ownership
Spire Healthcare Group plc           United Kingdom                                                  29.9%

Spire Healthcare Group plc is listed on the London Stock Exchange. It does not issue publicly available quarterly financial information and has
a December year-end. The associate was acquired on 24 August 2015. The investment in associate was equity accounted for the 4 months to 31
December 2015. No significant events occurred since 1 January 2016 to the reporting date.

A provisional notional purchase price allocation assessment did not identify any significant intangible assets other than goodwill.


4 SHARE CAPITAL
   
                                                                                                     Capital               Reverse
                                                                               Numbers     Share  Redemption    Share   aquisition
                                                                                    of   capital     Reserve**premium      reserve***
Ordinary shares                                                                 shares     GBP'm       GBP'm    GBP'm        GBP'm    Total
At 1 April 2014                                                            516 851 655       821           -        -            -      821
Shares issued                                                               25 625 000       177           -        -            -      177
Share issue costs                                                                    -        (4)          -        -            -       (4)
At 31 March 2015                                                           542 476 655       994           -        -            -      994
Shares issued (August 2015)                                                 69 444 444       479           -        -            -      479
Share issue costs                                                                             (4)          -        -            -       (4)
At 14 February 2016                                                        611 921 099     1 469           -        -            -    1 469
Reverse acquisition*                                                        53 207 327    (1 402)          6    4 862       (3 014)     452
Combined capital structure on 15 February 2016                             665 128 426        67           6    4 862       (3 014)   1 921
Share subscription                                                          72 115 384         7           -      593                   600
Reduction of share premium                                                           -         -           -   (4 765)           -   (4 765)
                                                                           737 243 810        74           6      690       (3 014)  (2 244)

*The company received legal advice on the scheme of arrangement and the premium on issue of share capital to Mediclinic International Limited
shareholders did not qualify as merger relief under United Kingdom law.

Reverse acquisition
The prior number of shares from 1 April 2015 to 14 February 2016 represents equivalent number of Mediclinic International Limited shares
converted using the Mediclinic scheme of arrangement conversion ratio of 0.625. From 15 February 2016 the capital structure of the Group
represents that of Mediclinic International plc.

**The Companies Act provides that where shares of a company are repurchased and funded by a new issue of shares, the amount by which the
Company's issued share capital is diminished on cancellation of the shares are transferred to a capital redemption reserve to maintain capital.
 The reduction of the company's share capital shall be treated as if the capital redemption reserve were paid up capital of the Company.

***The reverse acquisition reserve represents the net of the following adjustments resulting from the Al Noor  reverse acquisition:
- adjustment of the capital structure (share capital and share premium) of the Group to that of the legal parent;
- adjustment to account for the premium on shares issued to the Mediclinic International Limited shareholders;
- the share value component of the total consideration.
                                                                                                                              Number
Treasury shares                                                                                                            of shares  Total
At 1 April 2014                                                                                                            8 450 612    (21)
Repurchase of shares - Forfeitable Share Plan                                                                                155 454     (1)
Utilised by the Mpilo Trusts                                                                                                (178 875)     -
At 31 March 2015                                                                                                           8 427 191    (22)
Repurchase of shares - Forfeitable Share Plan                                                                                129 927     (1)
Disposal of shares - Forfeitable Share Plan                                                                                  (46 091)     -
Utilised by the Mpilo Trusts                                                                                              (8 238 246)    21
At 31 March 2016                                                                                                             272 781     (2)

The balance of the treasury comprises:
Forfeitable Share Plan                                                                                                       239 290
Mpilo Trusts                                                                                                                  33 491
                                                                                                                             272 781
*The prior year number of shares have been converted using the Mediclinic scheme of arrangement conversion 
ratio of 0.625 Mediclinic International plc shares for each Mediclinic International Limited share held.

                                                                                                                                   GROUP
                                                                                                                                2016   2015
                                                                                                                               GBP'm  GBP'm
5 RETAINED EARNINGS
Opening balance                                                                                                                  485    321
Profit for the year                                                                                                              177    241
Dividends paid                                                                                                                   (48)   (47)
Capital redemption on tender offer                                                                                                (6)     -
Reduction of share premium                                                                                                     4 765      -
Actuarial gains and losses                                                                                                       (56)   (31)
Transactions with non-controlling shareholders                                                                                     3      1
Balance at the end of the year                                                                                                 5 320    485

6 OTHER RESERVES

Share-based payment reserve                                                                                                       24     14
Opening balance                                                                                                                   14     13
Forfeitable Share Plan                                                                                                             1      -
Mpilo trusts                                                                                                                      11      1
Al Noor share option scheme                                                                                                       (2)     -

The balance of the share-based payment reserve comprise:
Executive share option scheme                                                                                                      1      1
Forfeitable share plan                                                                                                             1      -
Al Noor share option scheme                                                                                                       (2)     -
Mpilo trusts (Employee share trusts)                                                                                              17      6
Strategic South African black partners*                                                                                            7      7
                                                                                                                                  24     14

* During the financial year ending 31 March 2006, the difference between the fair value of the equity instruments issued in a BEE transaction
and the fair value of the cash and other assets received was recognised as an expense (grant date) and this corresponding increase in equity was
booked.


                                                                                                                                   GROUP
                                                                                                                                2016   2015
                                                                                                                               GBP'm  GBP'm
Foreign currency translation reserve                                                                                             407    306
Opening balance                                                                                                                  306    247
Currency translation differences                                                                                                 101     59

Hedging reserve                                                                                                                    4      2
Opening balance                                                                                                                    2      7
Fair value adjustments of cash flow hedges, net of tax                                                                             2     (6)
Recycling of fair value adjustments of derecognised cash flow hedge, net of tax                                                    -      1

7  BORROWINGS
Secured long-term bank loans*                                                                                                    140    166
Long-term portion                                                                                                                139    165
Short-term portion                                                                                                                 1      1
Capitalised financing costs - long-term                                                                                            -      -
* The long-term bank loan bears interest at the 3 month Jibar variable rate  plus a margin of 1.51% 
(31 March 2015: 1.51%) compounded quarterly, and is repayable on 2 June 2019.

Preference shares*                                                                                                                90    111
Long-term portion                                                                                                                 85    105
Short-term portion                                                                                                                 5      6
* Dividends are payable monthly at a rate of 69% of prime overdraft rate.  
GBP5m shares must be redeemed on 1 September 2016 and 1 September 2017 and the balance of GBP85m on 2 June 2019.
Secured long-term bank loan*                                                                                                      10     18
Long-term portion                                                                                                                  5     12
Short-term portion                                                                                                                 5      6
* The long-term bank loan bears interest at the 3 month Jibar variable rate  plus a margin of 1.06% 
(31 March 2015: 1.06%) compounded. GBP5m must be redeemed on 1 September 2016 and the balance of GBP5m on 8 October 2017.

Secured long-term bank loan*                                                                                                       9     11
Long-term portion                                                                                                                  9     11
Short-term portion                                                                                                                 -      -
* The long-term bank loan bears interest at the 3 month Jibar variable rate plus a margin of 1.51% 
(31 March 2015: 1.31%) compounded quarterly, and is repayable on 2 June 2019.
Secured long-term bank loans                                                                                                       5      7
Long-term portion                                                                                                                  4      6
Short-term portion                                                                                                                 1      1
These loans bear interest at variable rates linked to the prime overdraft rate and are repayable in periods 
ranging between one and twelve years. Property, equipment and vehicles with a book value of GBP12m 
(31 March 2015: GBP15m) are encumbered as security for these loans. Net trade receivables of GBP1m 
(31 March 2015: GBP1m) has also been ceded as security for these loans.

Borrowings in Southern African operations                                                                                         254    313
* Property and equipment with a book value of GBP160m (31 March 2015: GBP150m), cash and cash equivalents of GBP12m 
(31 March 2015: GBP10m) and trade receivables of GBP41m (31 March 2015: GBP46m) have been ceded as security for 
these borrowings.

Secured long-term bank loans                                                                                                       53     56
Long-term portion                                                                                                                  50     38
Short-term portion                                                                                                                  3     19
Capitalised financing costs - long-term                                                                                             -     (1)
This loan bears interest at variable rates linked to the 3M LIBOR and a margin of 2.0% (31 March 2015: 2.75%) 
and is amortising until 31 March 2020 (31 March 2015: June 2017). Properties with a book value of GBP100m 
(31 March 2015: GBP83m) are encumbered as security for this loan.

Borrowings in Middle East operations                                                                                               53     56

Secured long-term bank loans                                                                                                    1 098  1 084
Long-term portion                                                                                                               1 088  1 079
Short-term portion                                                                                                                 36     35
Capitalised financing costs - long-term                                                                                           (26)   (30)
These loans bear interest at a variable rate linked to the 3M LIBOR plus 1.5% and 2.85% 
(31 March 2015: 3M LIBOR plus 2.0% and 3.5%) and is repayable by July 2020. The loan is secured by: 
Swiss properties with a book value of GBP2 248m (31 March 2015:GBP2 161m); and Swiss bank accounts with a 
book value of GBP128m (31 March 2015: GBP138m).

Listed bonds                                                                                                                      170    164
Long-term portion                                                                                                                 170    164
Short-term portion                                                                                                                  -      -
The Swiss operating segment issued CHF145m 1.625% Swiss francs bonds and CHF 90m 2.0% Swiss francs bonds 
to finance its expansion programme andworking capital requirements. The bonds are repayable on 
25 February 2021 and 25 February 2025 respectively.

Secured long-term finance                                                                                                           -      1
Long-term portion                                                                                                                   -      1
Short-term portion                                                                                                                                        
and are repayable in equal monthly payments in periods ranging from one to seven years. Equipment with 
a book value of GBP1m (31 March 2015: GBP1m) is encumbered as security for these loans.

Borrowings in Swiss operations                                                                                                  1 268  1 249

Secured long-term bank loans                                                                                                      266      -
Long-term portion                                                                                                                   -      -
Short-term portion                                                                                                                266      -
Capitalised financing costs - long-term                                                                                             -      -
This loan bears interest at variable rates linked to LIBOR with a minimum base rate of 1% plus 3.75%. 
The facility is secured in favour or lenders over the shares in Mediclinic International Limited and of 
Mediclinic CHF Finco Limited, Mediclinic Middle East Holdings Limited andMediclinic Holdings Netherlands B.V.

Borrowings in the United Kingdom                                                                                                  266      -

Total borrowings                                                                                                                1 841  1 618
Short-term portion transferred to current liabilities                                                                            (317)   (68)
Non-current borrowings                                                                                                          1 524  1 550

8. SEGMENTAL REPORT

The reportable operating segments are identified as follows: Mediclinic Southern Africa, 
Mediclinic Switzerland, Mediclinic Middle East, United Kingdom and an additional reporting segment 
is shown for Corporate. The comparatives have been changed to conform with current presentation.
United Kingdom and Corporate is shown as operating segments.
                                                                                Southern                    Middle   United
                                                                                  Africa  Switzerland         East  Kingdom  Corporate  Total                      
Year ended 31 March 2016                                                           GBP'm        GBP'm        GBP'm    GBP'm      GBP'm  GBP'm 

Revenue                                                                              649        1 130          328        -          -  2 107
EBITDA                                                                               129          229           68        -        (51)   375

EBITDA before management fee                                                         133          230           70
Management fees included in EBITDA                                                    (4)          (1)          (2)                  7      7
Other gains and losses                                                                 -            -            -        -         (1)    (1)
Depreciation and amortisation                                                        (20)         (63)         (10)       -          -    (93)
Operating profit                                                                     109          166           58        -        (45)   288
Income from associate                                                                  -            -            -        6          -      6
Finance income                                                                         8            1            -        -          -      9
Finance cost                                                                         (21)         (46)          (2)       -         (6)   (75)
Taxation                                                                             (31)         (24)           -        -               (55)
Segment result                                                                        65           97           56        6        (51)   173

At 31 March 2016
Investments in associates                                                              -            1            -      451          -    452
Investments in joint venture                                                           3            -            -        -          -      3
Capital expenditure                                                                   52           98           36        -          -    186
Total segment assets                                                                 485        3 809        1 800      451          4  6 549
Segment liabilities                                                                  370        2 940          243        -        272  3 825

Year ended 31 March 2015                                                        

Revenue                                                                              691        1 044          242        -          -  1 977

EBITDA                                                                               150          203           53        -         (6)   400

EBITDA before management fee                                                         154          204           54        -          -      -
Management fees included in EBITDA                                                   (4)           (1)          (1)       -          6      6
Other gains and losses                                                                9            13            -        -          2     24
Depreciation and amortisation                                                        (22)         (55)          (8)       -          -    (85)
Operating profit                                                                     137          161           45        -          2    345
Income from associate                                                                  -            -            -        -          -      -
Income from joint venture                                                              -            -            -        -          -      -
Finance income                                                                         5            -            -        -          -      5
Finance cost                                                                         (23)         (74)          (3)       -          -   (100)
Taxation                                                                             (33)          21            -        -          -    (12)
Segment result                                                                        86          108           42        -          2    238

At 31 March 2015
Investments in associates                                                              -            -            -        -          -      -
Investments in joint venture                                                           4            -            -        -          -      4
Capital expenditure                                                                   80           94           17        -          -    191
Total segment assets                                                                 527        3 615          252        -          2  4 396
Segment liabilities                                                                  436        2 511          127        -          -  3 074

Reconciliation of segment result, assets and liabilities                                                                          2016   2015
                                                                                                                                 GBP'm  GBP'm
Segment result
Total profit from reportable segments                                                                                              173    238
Elimination of intersegment loan interest                                                                                           17     15
Profit for the year                                                                                                                190    253

Liabilities
Total liabilities from reportable segments                                                                                       3 825  3 074
Elimination of intersegment loan                                                                                                  (846)  (520)
                                                                                                                                 2 979  2 554

                                                                                                                                     GROUP
                                                                                                                                  2016   2015
                                                                                                                                 GBP'm  GBP'm
9  FINANCE COST
Interest expense                                                                                                                    44     49
Interest rate swaps                                                                                                                 11      4
Amortisation of capitalised financing costs                                                                                          5      8
Fair value (gains)/losses on ineffective cash flow hedges                                                                           (8)    19
Preference share dividend                                                                                                            6      7
Less: amounts included in the cost of qualifying assets                                                                              -     (2)
                                                                                                                                    58     85

10  INCOME TAX EXPENSE
Current tax
Current year                                                                                                                       (41)   (44)
Previous year                                                                                                                       (1)    44
Deferred tax                                                                                                                       (13)   (12)
Taxation per income statement                                                                                                      (55)   (12)

Composition
UK tax                                                                                                                               -      -
Foreign tax                                                                                                                        (55)   (12)
                                                                                                                                   (55)   (12)
Reconciliation of rate of taxation:
Standard rate for companies (UK)                                                                                                 20.0%  21.0%

Adjusted for:
Capital gains tax                                                                                                                 0.1% (0.6)%
Non-taxable income                                                                                                              (0.3)% (0.6)%
Non-deductible expenses*                                                                                                          5.6%   2.0%
Non-controlling interests' share of profit before tax                                                                           (0.3)% (0.3)%
Effect of different tax rates***                                                                                                (4.3)% (1.4)%
Income tax rate changes                                                                                                         (0.2)%      -
Non-recognition of tax losses in current year                                                                                     1.8%   0.6%
Recognition of tax losses relating to prior years                                                                               (0.4)%      -
Prior year adjustment**                                                                                                           0.4%(16.4)%
Effective tax rate                                                                                                               22.4%   4.3%

*Non-deductible expenses in the current year were impacted by:
- Transaction costs in relation to the Al Noor transaction were not deductible for tax purposes as these costs are capital of nature. The tax
effect of this amounted GBP10m which resulted in an increase in the effective tax rate.
- Non-deductible accelerated IFRS 2 charges increased the tax charge by GBP3m.

**In the prior year, Swiss income tax liabilities were released in respect of historical uncertain tax positions after settlement with tax
authorities.  This reduced the tax charge by GBP43m.

***The effect of different tax rates is mainly because of profit earned from South Africa which is subject to income tax rate of 28%, reduced by
profit earned from the UAE which is not subject to income tax.

****The statutory income tax rate in the UK reduced from 21% to 20% since 1 April 2015.

The income tax liability includes an amount of approximately GBP8m (2015: GBP7m) relating to unresolved tax matters.

The range of possible outcomes relating to this liability is not considered to be material.


                                                                                                                                    GROUP
                                                                                                                                      (Restated)
                                                                                                                             2016          2015
                                                                                                                            GBP'm         GBP'm
11  EARNINGS PER ORDINARY SHARE
Earnings per ordinary share (pence)
Basic (pence)                                                                                                                 29.6         44.6
Diluted (pence)                                                                                                               29.5         43.8

Number of shares reconciliation
                                                                                                                              2016         2015***
Weighted average number of ordinary shares in issue for basic earnings per share
Number of ordinary shares in issue at the beginning of the year                                                        542 473 328  516 848 328

Al Noor Hospitals Group plc shares prior to reverse acquisition                                                         14 688 077            -
Al Noor Hospitals Group plc shares repurchased                                                                          (8 000 842)           -
Weighted average number of ordinary shares issued during the year (August 2015)                                         41 742 562            -
Weighted average number of ordinary shares issued during the year (February 2016)                                        9 063 634            -
Weighted average number of ordinary shares issued during the year  (June 2014)                                                   -   19 868 151
Adjustment for equity raising - Private placement (June 2014)  (IAS 33 para 26)**                                                -      378 641
Adjustment for equity raising - Rights Offer (2015) (IAS 33 para 26)**                                                   5 239 773   13 135 323

Weighted average number of treasury shares                                                                              (6 764 447)  (9 957 753)
BEE shareholder                                                                                                           (521 142)  (1 503 618)
Mpilo Trusts                                                                                                            (5 995 653)  (8 377 728)
Forfeitable Share Plan                                                                                                    (247 652)     (76 407)

                                                                                                                       598 442 085  540 272 690

Weighted average number of ordinary shares in issue for diluted earnings per share
Weighted average number of ordinary shares in issue                                                                    598 442 085  540 272 690
Weighted average number of treasury shares held in terms of the BEE initiative not yet released from treasury stock        768 793    9 957 753
BEE shareholder*                                                                                                           521 141    1 503 618
Mpilo Trusts                                                                                                                     -    8 377 728
Forfeitable Share Plan                                                                                                     247 652       76 407

                                                                                                                       599 210 878  550 230 443

The prior year number of shares have been converted using the Mediclinic scheme of arrangement conversion ratio of 0.625 Mediclinic
International plc shares for each Mediclinic International Limited share held.

* Represents the equivalent weighted average number of shares for which no value has been received from the BEE shareholder (Mpilo Investment
Holdings 2 (RF) (Pty) Ltd) in terms of the Group's black ownership initiative. To date, no value was received for an equivalent of 521 141 (2015:
1 158 198) shares issued to the strategic black partner.

Mpilo Investment Holdings 1 (RF) (Pty) Ltd and Mpilo Investment Holdings 2 (RF) (Pty) Ltd are structured entities that are not consolidated due
to the group not having control. These companies are investment holding companies and were incorporated as part of the Mediclinic BEE
transaction. The companies hold ordinary shares in Mediclinic International plc (2015: Mediclinic International Limited) on which it receives
dividends. These dividends are used to repay the outstanding debt of the companies. The outstanding debt referred to is provided by third parties 
with no recourse to the group.
** The shares were issued at a price lower than the fair value of the shares before the equity capital raised in June 2014 and Rights Offer in
August 2015. As a result, the weighted average number of shares was adjusted in accordance with IAS 33 paragraph 26.
*** The 2015 number of shares has been adjusted with the exchange ratio of 0.625 (1 Mediclinic International Limited share was exchanged for
0.625 AL Noor Hospitals Group plc share in terms of the Mediclinic scheme of arrangement).

Headline earnings per ordinary share
The Group is required to calculate headline earnings per share (HEPS) in accordance with the JSE Limited (JSE) Listing Requirements, determined
by reference to the South African Institute of Chartered Accountants' circular 02/2013 (Revised) 'Headline Earnings'. The table below sets out a
reconciliation of basic EPS and HEPS in accordance with that circular. Disclosure of HEPS is not a requirement of IFRS, but it is a commonly used
measure of earnings in South Africa. The table below reconciles the profit for the financial year attributable to equity holders of the parent to
headline earnings and summarises the calculation of basic HEPS:

                                                                                                                                     GROUP
                                                                                                                                       (Restated)
                                                                                                                               2016         2015                                                                                                                             
                                                                                                                              GBP'm        GBP'm
Profit for the financial period attributable to equity holders of the parent                                                    177          241

Adjustments
Impairment of property                                                                                                            -            2
Insurance proceeds                                                                                                                -           (8)
Gain on disposal of subsidiary                                                                                                    -           (2)
Profit on disposal of property, equipment and vehicles                                                                            -           (4)
Headline earnings                                                                                                               177          229

Headline earnings per share (pence)                                                                                            29.6         42.4
Diluted headline earnings per share (pence)                                                                                    29.5         41.6


12  BUSINESS COMBINATIONS                                                                                                             
                                                                                                                                     GROUP
                                                                                                                                       (Restated)
                                                                                                                               2016         2015      
                                                                                                                              GBP'm        GBP'm
                                                                                                                          Cash flow    Cash flow
                                                                                                                                 on           on
                                                                                                                        acquisition  acquisition

Al Noor Hospitals Group plc                                                                                                      17            -
Clinique La Colline                                                                                                               -           75
Swissana Clinic AG Meggen                                                                                                         -            6
                                                                                                                                 17           81
Al Noor Hospitals Group plc
On 15 February 2016, Mediclinic completed the Combination between Al Noor Hospitals Group plc and Mediclinic 
International Limited. The Combination of Al Noor Hospitals Group plc and Mediclinic International became unconditional 
on 15 February 2016. The directors recognise the strong strategic merit in the transaction, with an excellent strategic 
fit between the operations in the UAE and the creation of a leading international private healthcare operator 
with a well-balanced geographic profile. The Combination is classified as a reverse take-over.

Following implementation of the Combination, it is expected that Al Noor, as enlarged by the acquisition of 
Mediclinic (the ''Enlarged Group''),will be one of the world's leading international private healthcare groups, 
with deep operational expertise  and a well-balanced geographic profile in Southern Africa, Switzerland, 
the United Arab Emirates and in the UK through a minority stake in Spire.

The goodwill of GBP1 189m arising from the acquisition is attributable to the earnings potential of the established 
Al Noor business with a geographical footprint in Abu Dhabi. None of the goodwill recognised is expected to be 
deductible for income tax purposes. 

The fair value exercise over the opening balance sheet of Al Noor remains provisional at 31 March 2016 as permitted by IFRS 3.  
Since the Group is in discussions with UAE medical insurance funders and other third parties about conforming Al Noor’s commercial 
practices with the rest of the Group, there is still a degree of uncertainty about the fair value of certain acquired assets and liabilities.  
This is expected to be finalised during the next year.

The following table summarises the consideration paid for Al Noor Hospital Group and the provisional fair value of assets acquired and liabilities 
assumed at the acquisition date.
Purchase consideration at 15 February 2016
Special dividend (GBP3.28 per share)                                                                                            383
Tender offer (limited to GBP1bn with special dividend, GBP8.32 per share)                                                       530
Value of share element*                                                                                                         446
Total consideration transferred                                                                                               1 359
* The value of the share element represents the equivalent fair value of the shares at date of acquisition that the acquirer 
(Mediclinic International Limited), would have issued to the shareholders of Al Noor Hospitals Group plc if equity 
instruments of the acquirer had to be issued.

Recognised amounts of identifiable assets acquired and liabilities assumed (provisional purchase price allocation)
Assets 
Property, equipment and vehicles                                                                                                61
Intangible assets                                                                                                               65
Non-current receivable                                                                                                           2
Inventories                                                                                                                     14
Trade and other receivables                                                                                                    111
Derivative financial instruments                                                                                                 2
Investment in money market funds                                                                                                10
Cash and cash equivalents                                                                                                       24
Total assets                                                                                                                   289

Liabilities
Retirement benefit obligations                                                                                                  22
Trade and other payables                                                                                                        92
Total liabilities                                                                                                              114
Total identifiable net assets at fair value                                                                                    175
Non-controlling interest                                                                                                        (5)
Goodwill                                                                                                                     1 189
Total                                                                                                                        1 359

Acquisition-related costs of GBP41m have been charged to administrative expenses in the consolidated income statement.

The fair value of trade and other receivables is GBP111m and includes trade receivables with a fair value of GBP95m.  The gross contractual amount
for trade receivables due is GBP121m, of which GBP95m is expected to be collectible.

From the date of acquisition, Al Noor Hospitals Group has contributed GBP50m of revenue and GBP4m to the net  profit before tax of the Group. If the
business combination had taken place at the beginning of the financial  year, revenue from continuing operations would have been GBP333m and the
net profit for the Group would have been GBP56m.

Analysis of cash flow on acquisition
Transaction costs incurred in reverse acquisition                                                                              (41)
Net cash acquired with the subsidiary                                                                                           24
Net cash flow on acquisition                                                                                                   (17)

13. EVENTS AFTER THE REPORTING DATE

At the time the financial statements were authorised for issue, the following events had taken place which have not been recognised as at 31
March 2016:

During May 2016 the Group obtained additional bank facilities in the amount of R1.2 billion (approximately GBP54m). The loans will carry interest
at 3 month Jibarplus a margin of 1.69% and is fully repayable in June 2019.


Date: 25/05/2016 08:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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