Mediclinic shares gain 8%
The group reported goodwill and fixed asset impairment charges at Mediclinic Middle East of £481m and £33m in Hirslanden, Switzerland.
The loss was up from last year’s loss of £151m, which was further impacted by the impairment charge of the equity investment in Spire Healthcare Group of £10m during the period.
Last year its equity investment in Spire was impaired by £164m.
Mediclinic has a 29.9 percent investment in Spire and the group said the Covid-19 outbreak in the UK also presents uncertainty for Spire.
However, the share price leapt to R63.80 a share in intraday trade, before closing at 65.98.
The group’s revenue increased by 5 percent to £3.08bn while earnings before interest, tax, depreciation and amortisation (Ebitda) declined by 3percent to £480m. Its adjusted earnings per share were down by 8percent to 24.7 pence a share.
The group suspended paying a dividend for the year as part of its response to maintaining its liquidity position through the Covid-19 crisis. However, it paid a total dividend of 3.20p in December 2019.
The group’s Southern Africa operations, which include South Africa and Namibia, revenue increased by 7percent to R17.03bn despite the impact of Covid-19 in late March.
Bed days sold increased by 2.5 percent and average revenue per bed day increased by 4 percent. Its adjusted Ebitda was flat at R3.39bn, with the adjusted Ebitda margin in line with expectations at 19.9 percent.
In South Africa, Mediclinic has successfully opened the Mediclinic Winelands Orthopaedic Hospital and three new day case clinics in Stellenbosch, Nelspruit and Cape Gate.
The group expected to open four additional day case clinics in the medium-term, taking the division’s total day case clinics to 15.
Chief executive Dr Ronnie van der Merwe said a high degree of uncertainty remained regarding the progression of the pandemic and its full impact, which might well continue for at least the next 12 months.
“As a group, we are preparing for a variety of eventualities, while simultaneously endeavouring to continue making available our wide range of acute inpatient, outpatient and day case care services. We will remain agile in our approach, seeking to overcome challenges and creating opportunities. Throughout this pandemic, and afterwards, the group’s values of being client centred and patient safety focused will not waver,” Van der Merwe said.