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MEDICLINIC INTERNATIONAL PLC - Mediclinic interim group results for period ended 30 Sept 2019 & dividend declaration & committee appointment

Release Date: 14/11/2019 09:00
Code(s): MEI     PDF:  
 
Wrap Text
Mediclinic interim group results for period ended 30 Sept 2019 & dividend declaration & committee appointment

Mediclinic International plc
Incorporated in England and Wales
Company Number: 08338604
LSE Share Code: MDC
JSE Share Code: MEI
NSX Share Code: MEP
ISIN: GB00B8HX8Z88
LEI: 2138002S5BSBIZTD5I60
South African income tax number: 9432434182
("Mediclinic", or the "Company", or the "Group")

MEDICLINIC INTERIM GROUP RESULTS FOR PERIOD ENDED 30 SEPT 2019
& DIVIDEND DECLARATION
& COMMITTEE APPOINTMENT

A SOLID FIRST-HALF FINANCIAL PERFORMANCE WITH ALL THREE DIVISIONS GROWING
REVENUE, EBITDA AND PATIENT VOLUMES

PRE-IFRS 16: GROUP FINANCIAL RESULTS

    -   Revenue up 9% to £1 515m; up 6% in constant currency, reflecting growth across all three
        divisions
    -   Adjusted EBITDA up 4% at £222m; up 3% in constant currency terms, reflecting adjusted
        EBITDA margins in line with expectations for all three divisions
    -   Adjusted operating profit flat at £137m, reflecting increased depreciation charges associated
        with infrastructure and technology investments; reported operating profit up 264% to £142m,
        reflecting prior year period non-cash Hirslanden impairment charges of £98m
    -   Reported earnings of £112m (1H19: loss of £168m), reflecting prior year period non-cash
        impairment charges on the equity investment in Spire of £164m
    -   Net debt at £1 775m reflects borrowings incurred; leverage ratio flat on FY19 at 3.5x
    -   Adjusted earnings per share flat at 10.3 pence
    -   IFRS 16 headline earnings per share 14.2 pence (1H19: 10.7 pence)
    -   Improved cash conversion at 98% of adjusted EBITDA (1H19: 69%)
    -   Interim dividend maintained at 3.20 pence per share

BOARD CHANGES

The following changes to the Board and its Committees have occurred and been announced since the
financial year-end:

Mr Desmond Smith retired as an independent non-executive Director and Senior Independent
Director at the conclusion of the 2019 Annual General Meeting ("AGM") on 24 July 2019, as planned.
Mr Smith was succeeded as Senior Independent Director, Chairperson of the Audit and Risk
Committee and member of the Nomination Committee from that date by Mr Alan Grieve.

Mr Tom Singer was appointed as an independent non-executive Director and member of the Audit
and Risk Committee with effect from 24 July 2019.

Dr Edwin Hertzog indicated his intention to retire as Chairman with effect from the conclusion of the
2020 AGM. A search for Dr Hertzog's successor as Chairman has been initiated and the Board will
provide an update as appropriate.

The Company would furthermore like to announce the appointment of Mr Singer as an additional
member of the Remuneration Committee with effect from 13 November 2019.

DIVIDEND POLICY AND DIVIDEND DECLARATION

The Group's dividend policy is to target a pay-out ratio of between 25% and 35% of full-year adjusted
earnings. The Board may revise the policy at its discretion.

The Board declared an interim dividend from retained earnings of 3.20 pence per ordinary share for
the six months ended 30 September 2019. Shareholders on the South African register will be paid the
ZAR cash equivalent of 60.83200 cents (48.6656 cents net of dividend withholding tax) per share. A
dividend withholding tax of 20% will be applicable to all shareholders on the South African register
who are not exempt therefrom. The ZAR cash equivalent has been calculated using the following
exchange rate: £1: ZAR19.01, being the five-day average £/ZAR exchange rate (Bloomberg) on
Friday, 8 November 2019 at 3:00pm GMT.

The interim dividend will be paid on Tuesday, 17 December 2019 to all ordinary shareholders who are
on the register of members at the close of business on the record date of Friday, 6 December 2019.

The salient dates for the dividend will be as follows:

Dividend announcement date                          Thursday, 14 November 2019
Last date to trade cum dividend (SA register)       Tuesday, 3 December 2019
First date of trading ex-dividend (SA register)     Wednesday, 4 December 2019
First date of trading ex-dividend (UK register)     Thursday, 5 December 2019
Record date                                         Friday, 6 December 2019
Payment date                                        Tuesday, 17 December 2019

Share certificates may not be dematerialised or rematerialised within Strate from Wednesday, 
4 December 2019 to Friday, 6 December 2019, both dates inclusive. No transfers between the UK and
SA registers may take place from Thursday, 14 November 2019 to Friday, 6 December 2019, both
days inclusive.

FURTHER INFORMATION
The contents of this short-form announcement is the responsibility of the Board of Directors of 
the Company. This announcement represents a summary of the information contained in the unabridged
results announcement. Any investment decisions by investors and/or shareholders should be based
on a consideration of the unabridged announcement. The unabridged announcement can be
accessed on the following JSE link:
https://senspdf.jse.co.za/documents/2019/JSE/ISSE/MEIE/MEIHY20.pdf

The announcement is also published on www.mediclinic.com and available for inspection at the
registered office of the Company and the offices of the Company's sponsor at no charge, during
normal business hours.

CORPORATE INFORMATION

DIRECTORS: Dr Edwin Hertzog (ne) (Chairman) (South African), Dr Ronnie van der Merwe 
(Chief Executive Officer) (South African), Jurgens Myburgh (Chief Financial Officer) (South African), 
Dr Muhadditha Al Hashimi (ind ne) (Emirati), Jannie Durand (ne) (South African), Alan Grieve 
(Senior Independent Director) (British and Swiss), Dr Felicity Harvey (ind ne) (British), Seamus Keating 
(ind ne) (Irish), Danie Meintjes (ne) (South African), Dr Anja Oswald (ind ne) (Swiss), Trevor Petersen 
(ind ne) (South African), Tom Singer (ind ne) (British), Pieter Uys (alternate to Jannie Durand) 
(South African) 

COMPANY SECRETARY: Link Company Matters Ltd

REGISTERED OFFICE: Mediclinic International plc - 6th Floor, 65 Gresham Street, London, EC2V
7NQ, United Kingdom - Tel +44 20 7954 9569 • Fax +44 20 7954 9886
Ethics Line Toll-free 0800 005 316 (South Africa only) - ethics@mediclinic.com

REGISTRAR/TRANSFER SECRETARIES:
United Kingdom: Computershare Investor Services plc - The Pavilions, Bridgwater Road, Bristol,
BS99 6ZZ, United Kingdom - Tel +44 370 703 6022
South Africa: Computershare Investor Services (Pty) Ltd - Rosebank Towers, 15 Biermann Avenue,
Rosebank 2196, South Africa - PO Box 61051, Marshalltown 2107, South Africa - Tel +27 11 370 5000
Namibia: Transfer Secretaries (Pty) Ltd - 4 Robert Mugabe Avenue, Windhoek, Namibia - PO Box
2401, Windhoek, Namibia - Tel +264 61 227 647

JOINT CORPORATE BROKERS (UK): Morgan Stanley & Co International plc and UBS Investment Bank
JSE SPONSOR (SA): Rand Merchant Bank (a division of FirstRand Bank Limited)
NSX SPONSOR (NAMIBIA): Simonis Storm Securities (Pty) Ltd

14 November 2019

www.mediclinic.com

Date: 14/11/2019 09:00:00
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