Wrap Text
Condensed unaudited group interim results for the six months ended 31 March 2026 and cash dividend declaration
LIFE HEALTHCARE GROUP HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2003/002733/06)
ISIN: ZAE000145892
JSE and A2X share Code: LHC
("Life Healthcare" or "the Group" or "the Company")
LIFE HEALTHCARE FUNDING LIMITED
(Incorporated in the Republic of South Africa with limited liability)
(Registration number 2016/273566/06)
LEI: 3789SJPQJZF8ZYXTZ394
Bond company code: LHFI
("Life Healthcare Funding")
CONDENSED UNAUDITED GROUP INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2026 AND CASH DIVIDEND DECLARATION
- Revenue growth of 2.4% to R12.4 billion
- Normalised EBITDA up 5.2% with margin expansion of 0.5%
- Solid underlying operational performance (8.4% increase in operating profit before non-trading items)
- Impacted by funder placed under curatorship
- Normalised earnings per share increased by 8.4% to 53.1 cents
- Healthy gearing of below 1 times and a return on capital employed (ROCE) of 17.8%
- The Board has declared an interim cash dividend of 23.0 cents per share, an increase of 9.5% compared to the prior period
Earnings per share (EPS), headline earnings per share (HEPS) and normalised EPS
Total EPS (from continuing and discontinued operations) increased to 52.8 cents (H1-2025: -155.2) mainly due to the R2.9 billion fair
value adjustment to the Piramal liability recognised in H1-2025.
Prior period pro forma information is provided to exclude the fair value adjustment to the LMI-associated liabilities.
Normalised EPS, which excludes non-trading related items, better reflects the performance of our underlying business and increased
by 8.4%.
Earnings per share (cents) H1-2026 H1-2025 Pro forma Pro forma % change % change
Unaudited Unaudited adjustments H1-2025 H1-2026 vs H1-2026 vs
H1-2025 Unaudited H1-2025 pro forma
H1-2025
From continuing
operations
Normalised EPS 53.1 49.0 - 49.0 8.4% 8.4%
EPS 49.6 (150.6) 202.8 52.2 >100% (5.0%)
HEPS 51.9 (152.2) 202.8 50.6 >100% 2.6%
From continuing and
discontinued operations
EPS 52.8 (155.2) 223.8 68.6 >100% (23.0%)
HEPS 55.1 (155.8) 223.8 68.0 >100% (19.0%)
Financial position and liquidity
The Group is in a strong financial position as at 31 March 2026, with net debt to normalised EBITDA (as per bank covenant definitions)
of 0.93 times, well within our covenant of 3.5 times (September 2025: 0.01 times. This metric was distorted by the portion of the LMI
proceeds withheld to pay the Piramal liability which was due in H1-2026. If this liability is included in net debt, the net debt to normalised
EBITDA increased to 0.77 times).
Cash generated from continuing operations was R1.3 billion for the period. The available undrawn bank facilities as at 31 March 2026
amount to R1.8 billion.
Cash dividend
The Board approved an interim gross cash dividend of 23.00 cents per ordinary share. The dividend has been declared from income
reserves and is subject to South African dividend withholding tax of 20%, which will be applicable to all shareholders not exempt
therefrom, after deduction of which the net cash dividend is 18.40 cents per share.
The Company's total number of issued ordinary shares is 1 467 349 162 as at 28 May 2026. The Company's income tax reference
number is 9387/307/15/1.
In compliance with the requirements of the JSE, the following salient dates are applicable:
Last date to trade cum dividend Monday, 15 June 2026
Shares trade ex the dividend Wednesday, 17 June 2026
Record date Friday, 19 June 2026
Payment date Monday, 22 June 2026
Share certificates may not be dematerialised or rematerialised between Wednesday, 17 June 2026 and Friday, 19 June 2026, both
days inclusive.
2026 Outlook
Grow
For the 12 months to 30 September 2026 (FY2026), the Group will continue to grow its underlying asset base in strategic locations
adding 87 acute hospital beds, 64 acute rehabilitation beds, a cathlab and a vascular lab. The construction of the new 140-bed
Life Paarl Valley Hospital is in progress and is expected to open in FY2027. The Group will continue to grow its diagnostics business,
opening three PET-CT sites over the course of the year. The two cyclotrons built in partnership with Africa X-Ray Industrial and Medical
Proprietary Limited (Axim) will start commercial production after completing the regulatory approval process.
Drive
The Group will continue to drive occupancies to 68% with PPD growth expected to be relatively flat. Revenue growth for the full year
is expected to be c.2%. The Group expects to recruit c.140 new specialists for FY2026.
Optimise
As part of the Group's asset optimisation process, the Group will continue to focus on improving the EBITDA margin, with R400 million
in cost savings over three years. The asset optimisation initiative will continue to progress. The Group is in the process of acquiring an
additional hospital property, which is currently leased, and capex for FY2026 is expected to be c.R2.4 billion.
Thank you
The Company's ability to effectively respond to operational challenges while continuing to provide quality care to its patients is largely
due to the resilience, dedication and unwavering support of its employees, specialists and other healthcare professionals. Life
Healthcare would like to thank them for their tireless work and for the care they deliver.
Results announcement
This results announcement has been prepared in accordance with the JSE Listings Requirements and is a summary of the
information in the detailed interim results published on 28 May 2026 and does not contain full or complete details. The full results are
available on Life Healthcare's website (https://www.lifehealthcare.co.za/investor-relations/results-and-reports/) and through the JSE
cloudlink at https://senspdf.jse.co.za/documents/2026/JSE/ISSE/LHC/Interim26.pdf
Any investment decisions by shareholders, noteholders and/or investors should be based on a consideration of the condensed interim
financial statements as a whole and shareholders, noteholders and/or investors are encouraged to review the condensed interim
financial statements, which is available for viewing on the links as set out above.
The contents of the results announcement are the responsibility of Life Healthcare's Board of directors, and it has not been reviewed
nor audited by the Group's auditors.
Executive directors: PG Wharton-Hood (Chief Executive), PP van der Westhuizen (Chief Financial Officer)
Non-executive directors: Dr VL Litlhakanyane (Chairman), Dr MF Abdullah, Dr RA Campbell, CM Henry, TP Moeketsi, AM Mothupi-
Palmstierna, Adv M Sello, and F Tonelli
Company Secretary: J Ranchhod
Registered office: Oxford Parks, 203 Oxford Road (cnr Eastwood and Oxford Roads), Dunkeld, 2196
Equity sponsor: Rand Merchant Bank, a division of FirstRand Bank Limited
Debt sponsor: Questco Corporate Advisory
Note regarding forward-looking statements: Any forward-looking statements or projections made by the Company, including those
made in this announcement, are subject to risk and uncertainties that may cause actual results to differ materially from those projected,
are the responsibility of the directors and have not been reviewed or reported on by the Group's external auditors.
Date: 28 May 2026
Date: 28-05-2026 07:05:00
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