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Release Date: 09/11/2018 07:05
Code(s): LHC     PDF:  
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Trading statement

(Incorporated in the Republic of South Africa)
(Registration number: 2003/002733/06)
ISIN: ZAE000145892
Share Code: LHC
("Life" or "the Group" or "the Company")


Life is currently finalising the Group's financial results for the year ended 30 September 2018. Further to the
trading statement released on the Stock Exchange News Service on 1 June 2018 as part of the Company's
interim results announcement and the trading update released on 28 September 2018, shareholders are
advised that the Group's revenue, normalised EBITDA, earnings per share (EPS) and headline earnings per
share (HEPS) for the year ended 30 September 2018 are expected to vary from those for the prior year ended
30 September 2017, within the following ranges:

Measure                        Estimated                 Estimated number         Reported year        Notes
                               percentage range          range for year           ended 30
                               for year ended 30         ended 30                 September 2017
                               September 2018            September 2018

Revenue                        +10.0% to +14.0%          R22 877m to              R20 797m
                                                         R23 709m
-    Southern Africa           +7.0% to +10.0%           R17 002m to              R15 890m
                                                         R17 479m
-    Alliance Medical          +29.0% to +32.0%          R4 917m to               R3 812m              1
                                                         R5 032m

-    Poland                    +13.0% to +16.0%          R1 237m to               R1 095m
                                                         R1 270m
Normalised EBITDA              +8.0% to +11.0%           R5 401m to               R5 001m              1
                                                         R5 551m
-    Southern Africa           +5.0% to +8.0%            R4 251m to R4            R4 049m
-    Alliance Medical          +26.0% to +29.0%          R1 144m to               R908m                1
                                                         R1 171m
-    Poland                    +90.0% to 95.0%           R84m to R86m             R44m

EPS (cents)                    +67.0% to                                                      
                               +77.0%                    103.9 to 110.1           62.2                 2

HEPS (cents)                   +35.0% to +45.0%          104.5 to 112.2           77.4                 2
Shares in issue (‘000)
                                                         1 467 349                1 449 390
Weighted average
number of shares (‘000)
(approx.)                                                1 450 709                1 309 722

1. The Group results are expected to be marginally higher than previously disclosed in the trading update
   released on 28 September 2018 due to the better than expected performance of Alliance Medical as a
   result of stronger than anticipated exchange rates in favour of Alliance Medical Group Limited (Alliance
   Medical) and better than predicted performance of acquisitions concluded during 2018. The adjustment
   to the Alliance Medical management incentive scheme provision, due to a lower valuation, also
   contributed to the improved overall financial results. The above has resulted in an improved EBITDA
   margin for Alliance Medical.

2. EPS and HEPS

EPS for the year ended 30 September 2018 is expected to be between 103.9 cents per share (cps) and
110.1 cps, a growth of between 67.0% and 77.0% above the prior year reported EPS of 62.2 cps.

Earnings in the current year have been impacted by the following:

- improved overall performance of the business;

- the inclusion of Alliance Medical results for 12 months (2017: 10.3 months);

- the subsequent acquisitions by Alliance Medical;

- the weakening of the rand against the British Pound, Euro and Polish Zloty;

- the results reflect a gain of approximately R74 million (2017: loss of R65 million) relating to the
  acquisition by Life Healthcare of the minority shareholding in Alliance Medical;

- the prior year includes the non-recurring impact of a number of once-off items, such as:

  - costs related to the Alliance Medical acquisition (principally transaction costs of R267 million
    and funding costs of R427 million); and

  - the impairment of the Scanmed S.A. business in Poland (R167 million).

The improvement in earnings has been partially offset by:

- the increase in the amortisation of intangible assets related to the Alliance Medical business included
  for 12 months while the amortisation charge was only for 10.3 months in the comparable year; and

- the weighted number of shares in issue in the current year increased by roughly 10.8% due to the
  effect of the rights offer shares issued in April 2017 as well as the scrip distribution shares issued
  during the current year.

HEPS is expected to be between 104.5 cps and 112.2 cps, a growth of between 35.0% and 45.0% above
the prior year reported HEPS of 77.4 cps.

- HEPS in the current year excludes the impact of impairments as well as the profit on sale of property,
  plant and equipment (PPE) mainly in southern Africa. In the prior year, HEPS excluded the Polish
  impairment of R167 million and the loss on disposal of PPE.

The financial information on which this trading statement is based has not been reviewed and reported
on by the Company's external auditors.

The Company expects to release its financial results for the year ended 30 September 2018 on the Stock
Exchange News Service on or about 23 November 2018.

9 November 2018

RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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