Life Healthcare Group has reported a modest increase in revenue and earnings for the six months ended March 31 recording 2.4% increase in revenue to R12.4-billion.
Operational profit before non-trading items increased by 8.4%, reflecting what the company described as a solid underlying operational performance, although results were partly affected by a funder being placed under curatorship.
Normalised earnings per share increased by 8.4% to 53.1 cents. Total earnings per share increased to 52.8 cents compared with a loss in the prior period, largely due to a R2.9-billion fair value adjustment seen previously.
Strong financial position
The group said its financial position remains strong with net debt to normalised EBITDA at 0.93, which is considered to be well within its covenant limit. It also generated R1.3-billion in cash from continuing operations and has R1.8-billion in undrawn bank facilities available.
In line with the improved performance, the board declared an interim gross cash dividend of 23.0 cents per share, up 9.5% from the previous period. After dividend withholding tax, shareholders will receive 18.40 cents per share.
Revenue growth forecast
Looking ahead, the group expects revenue growth of around 2% for the full financial year. It plans to expand its healthcare capacity by adding new hospital beds, diagnostic facilities and specialist staff, while continuing to invest in infrastructure, including the construction of a new hospital in Paarl.
“For the 12 months to September 30 2026 (FY2026), the Group will continue to grow its underlying asset base in strategic locations adding 87 acute hospital beds, 64 acute rehabilitation beds, a cathlab and a vascular lab. The construction of the new 140-bed Life Paarl Valley Hospital is in progress and is expected to open in FY2027.
“The Group will continue to grow its diagnostics business, opening three PET-CT sites over the course of the year. The two cyclotrons built in partnership with Africa X-Ray Industrial and Medical Proprietary Limited (Axim) will start commercial production after completing the regulatory approval process,” said the group.
The group further aims to focus on improving efficiency and margins, targeting
R400-million in cost savings over three years as part of its asset optimisation strategy.
Despite a challenging operating environment, Life Healthcare remains confident in its ability to grow its asset base and maintain stable financial performance.
- Life Healthcare Group reported a 2.4% revenue increase to R12.4 billion and an 8.4% rise in operational profit before non-trading items for the six months ended March 31.
- Normalised earnings per share rose 8.4% to 53.1 cents, with total earnings per share recovering to 52.8 cents from a prior loss due to a previous R2.9 billion fair value adjustment.
- The group maintains a strong financial position with net debt to normalised EBITDA at 0.93, generating R1.3 billion cash from operations and holding R1.8 billion undrawn bank facilities.
- An interim gross cash dividend of 23.0 cents per share was declared, up 9.5%, and revenue growth of around 2% is forecast for the full financial year.
- Plans include expanding healthcare capacity with new hospital beds, diagnostic centers, and infrastructure investments such as the new 140-bed Life Paarl Valley Hospital, alongside targeting R400 million in cost savings over three years.
Life
Operational profit before non-trading items increased by 8.4%, reflecting what the company described as a solid underlying operational performance, although results were partly affected by a funder being placed under curatorship.
Normalised earnings per share increased by 8.4% to 53.1 cents. Total earnings per share increased to 52.8 cents compared with a loss in the prior period, largely due to a R2.9-billion fair value adjustment seen previously.
In line with the improved performance, the board declared an interim gross cash dividend of 23.0 cents per share, up 9.5% from the previous period. After dividend withholding tax, shareholders will receive 18.40 cents per share.
“For the 12 months to
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R400-million in cost savings over three years as part of its asset optimisation strategy.
Despite a challenging operating environment, Life
