2017/18 Interim Results

Mediclinic announces its results for the six months ended 30 September 2017 (the “reporting period” or “1H18”).

  • Abu Dhabi turnaround underway; continued strong performance inDubai
  • Underlying EBITDA margin improvement in Southern Africa
  • Hirslanden successfully completed Linde acquisition and refinancing of debt facilities
  • Interim dividend maintained at 3.20 pence per share

Please refer to the separate announcement providing an update on the status of Mediclinic’s proposal to acquire all of the issued and to be issued share capital of Spire.

Group Financial Results

  • Revenue up 10% to GBP1 405m; flat in constant currency terms
  • Underlying EBITDA up 5% to GBP232m; decreased by 5% in constant currency terms
  • Underlying operating profit up 3% to GBP161m; reported operating profit down 21% at GBP133m, impacted by exceptional items
  • Underlying earnings down 11% to GBP84m reflecting lower income from associates
  • Reported loss of GBP50m as result of Spire equity investment impairment charge and other exceptional items
  • Underlying earnings per share down 12% to 11.3 pence; excluding the impact of Spire’s exceptional provision, underlying earnings per share was down 5% to 12.2 pence
  • Cash conversion at 91% of underlying EBITDA (1H17: 104%)
  • Interim dividend maintained at 3.20 pence per share
 

Operational Highlights

  • Hirslanden revenue stable at CHF820m; underlying EBITDA down 6% to CHF143m; underlying EBITDA margin of 17.4%
  • Southern Africa revenue up 4% to ZAR7 581m; underlying EBITDA up 6% to ZAR1 590m; underlying EBITDA margin of 21.0%
  • Middle East revenue down 5% to AED1 475m; underlying EBITDA down 26% to AED125m; underlying EBITDA margin of 8.5%
  • Guidance for all operating divisions remains unchanged with current 2H18 trading in line with management expectations

Danie Meintjes, CEO of Mediclinic, today commented:

“Given the variability of last year, we have been encouraged by the positive operational trends in our Abu Dhabi business as we progressed through the first six months. Along with the strong performance from our established Dubai operations, I am confident that Mediclinic Middle East is on track to deliver a strong second half performance resulting in revenue growth and underlying EBITDA margin expansion for the year."

“In Switzerland and Southern Africa, patient volumes in the first half of the year were down on the prior year period, impacted by the timing of the Easter holiday. The management teams in both operating divisions have implemented the appropriate cost-saving programmes and productivity initiatives that should help margins during the second half of the year."

“We have had a good start to the second half of the financial year, with current trading across all our operating divisions in line with our expectations."

“As a leading global healthcare provider, Mediclinic continues to focus on its core strategy of putting “Patients First”. We achieve this by seeking to offer a value proposition to our patients through improving quality, safety and efficiency. The ongoing, long-term investments we make and experienced leadership across the Group support the delivery of sustainable growth in the future whilst ensuring we continue to improve the services we offer our patients, funders and clinicians.”