TIDMMDC
RNS Number : 3876C
Mediclinic International PLC
13 April 2017
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
("Mediclinic", the "Company" or the "Group")
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
13 April 2017
Full Year 2017 Trading Update
Mediclinic International plc, the international private
healthcare group, provides the following trading update ahead of
the publication of its results for the year ended 31 March 2017
("FY17") on 24 May 2017. The information on which this trading
update is based represents the Group's latest financial estimates
and has not been reviewed and reported on by Mediclinic's external
auditors. All financial figures, unless explicitly stated, are
underlying*.
Commenting today, Danie Meintjes, CEO, said:
"Mediclinic's largest two platforms, Switzerland and Southern
Africa, in addition to our Dubai business, all performed in line
with expectations during the 2017 financial year. However, as
previously announced, the Abu Dhabi business underperformed having
been impacted by a major regulatory change in addition to certain
business and operational challenges. We have been focused on
resolving these issues and stabilising performance in the Middle
East. Our confidence in the long-term growth opportunities of the
region remains strong and we currently expect performance in the
Middle East to improve as we progress through the 2018 financial
year."
Hirslanden - Switzerland
FY17 revenue was up 3.5% to some CHF1.7 billion (FY16: CHF1.6
billion) with patient bed days marginally lower (-0.7%) and revenue
per bed day increasing by 3.0%. In addition, Hirslanden's
outpatient revenues, which represent less than 20% of the overall
platform revenues, continued to grow during the year.
The underlying EBITDA margin for FY17 is expected to be around
20%, marginally higher than the prior year (FY16: 19.7%). This is
due to improved operating leverage and the benefit of a CHF8m Swiss
tariff provision release (FY16: CHF3m), offset by increased costs
and the continued change in mix towards treating basic insured
patients.
Hirslanden expects FY17 depreciation and amortisation of around
CHF100m, net finance costs of around CHF55m (of which around CHF20m
is intercompany interest which will be eliminated on consolidation)
and income tax expense of around CHF40m.
Mediclinic Southern Africa
FY17 revenue was up 6.8% to some ZAR14.4 billion (FY16: ZAR13.5
billion) with inpatient bed days and revenue per bed day increasing
by around 0.9% and 5.8%, respectively. These results were delivered
against a continued weak macro-economic environment, stagnant
medical scheme membership and increased competition in the private
healthcare sector.
The underlying EBITDA margin for FY17 is expected to be around
21%, marginally lower than the prior year (FY16: 21.4%), impacted
by the medical versus surgical mix, higher price increases on
pharmaceuticals (sold at zero margin) and investment in additional
clinical personnel.
Mediclinic Southern Africa expects FY17 depreciation and
amortisation of around ZAR460m, net finance costs of around ZAR495m
and income tax expense of around ZAR625m. Net finance costs
increased compared to the prior year because of refinancing the
corporate bridge loan in June 2016.
Mediclinic Middle East
In line with guidance, FY17 revenue was down 8% compared to pro
forma FY16 revenue to some AED3.1 billion (FY16 pro forma: AED3.4
billion). As previously announced, whilst the Dubai business
performed well in FY17, the Abu Dhabi business experienced
challenging trading conditions impacting revenues. The underlying
EBITDA margin for FY17 is expected to be slightly ahead of previous
guidance at 10.5% to 11.5%.
Mediclinic Middle East expects FY17 depreciation and
amortisation of around AED175m and net finance costs of around
AED30m, similarly impacted by the refinancing of the corporate
bridge loan.
Spire Healthcare Group
Mediclinic has a 29.9% investment in Spire Healthcare Group plc
("Spire"). The investment in Spire is accounted for on an equity
basis recognising the reported profit of GBP53.6m for Spire's
financial year ended 31 December 2016. Mediclinic expects the FY17
equity accounted share of profit from Spire to be GBP12m (FY16:
GBP6m) after adjusting for the amortisation of intangible assets
recognised in the notional purchase price allocation of the equity
investment.
* 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 defined one-off incomes and
charges.
About Mediclinic International plc
Mediclinic is an international private healthcare group with
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, a LSE listed and UK-based private healthcare group.
Mediclinic comprises 74 hospitals and 40 clinics. 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 6 hospitals and
34 clinics with more than 700 inpatient beds in the United Arab
Emirates.
The platforms' contributions to Group revenue for the financial
year ended 31 March 2016 were 53.6% by Hirslanden, 30.8% by
Mediclinic Southern Africa and 15.6% by Mediclinic Middle East.
During February 2016, the combination of the Company (previously
named Al Noor Hospitals Group plc), with operations mainly in Abu
Dhabi in the United Arab Emirates, and 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 renaming of the enlarged group to Mediclinic International
plc.
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.
For further information, please contact:
Investor Relations, Mediclinic International plc
James Arnold, Head of Investor Relations
ir@mediclinic.com
+44 (0)20 3786 8181
Media queries
FTI Consulting
Brett Pollard/Ciara Martin
+44 (0)20 3727 1000
Frank Ford
+27 (0)21 487 9000
Registered address: 1st Floor, 40 Dukes Place, London, EC3A 7NH,
United Kingdom
Website: www.mediclinic.com
Corporate broker: Morgan Stanley & Co International plc
JSE sponsor: RAND MERCHANT BANK (A division of FirstRand Bank
Limited)
NSX sponsor: Simonis Storm Securities (Pty) Ltd
This information is provided by RNS
The company news service from the London Stock Exchange
END
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