Johannesburg - Netcare, an owner and operator of private hospitals in South Africa and the UK, more than doubled full-year profit after it reduced exposure to UK properties and as business in that health care market improved.
Net income rose to 5.1 billion rand ($502 million) for the year through September from 2.1 billion a year earlier, Johannesburg-based Netcare said in a statement today.
Revenue advanced 10 percent to 27.8 billion rand, with currency fluctuations accounting for 6 percent of the increase.
The final dividend was raised 19 percent to 40.5 cents a share.
The earnings “reflect a strong trading performance from the South African operations and further improvement from our operations in the United Kingdom,” the company said.
Netcare’s British unit, which runs 35 hospitals, is showing “early tentative signs of stabilisation,” it said.
Revenue from the UK gained 2.1 percent during the year, compared with 6.2 percent in South Africa, the company said.
Netcare plans to expand its number of hospital beds in Africa’s biggest economy, where a growing middle class is spending more money on private health care.
The shares rose as much as 2.3 percent and traded 1.8 percent higher at 24.53 rand at 11:06 a.m. in Johannesburg, bringing the gain this year to 25 percent. - Bloomberg News