Profile

Mediclinic’s business consists of the provision of comprehensive, high-quality hospital services on a cost-effective basis in Southern Africa, the United Arab Emirates and Switzerland.

Mediclinic International Limited (Mediclinic)

Mediclinic has a March year-end and therefore its results for the twelve months to 31 March  2015 have been equity accounted in Remgro’s results for the year under review. Mediclinic’s contribution to Remgro’s headline earnings for the year under review amounted to R1 734 million (2014: R1 489 million), reflecting a solid operating performance as well as the positive impact of a weaker rand and the leveraging effect of the group’s improved capital structure.

Mediclinic’s turnover for its year ended 31 March 2015 increased by 16% to R35 238 million (2014: R30 495 million), with strong performances from all three operating platforms. The group believes that normalised headline earnings more accurately reflect operational performance and therefore headline earnings are adjusted to take into account non-operational items and once-off items. The group’s normalised headline earnings in­creased by 13% from R3 052 million to R3 443 million.

Mediclinic Southern Africa’s revenue increased by 10% to R12 323 million (2014: R11 205 million) for the year under review, mainly due to a 4.4% increase in bed-days sold and a 5.8% increase in the average income per bed-day. Operating income before interest, taxation, depreciation and amortisation (EBITDA) increased by 11% to R2 676 million (2014: R2 453 million) and the Southern African operations contributed R1 118 million (2014: R984 million) to the normalised attributable income of Mediclinic.

Mediclinic has an interest of 100% in Hirslanden, the holding company of the largest private hospital group in Switzerland.
Hirslanden’s revenue for the year under review increased by 17% to R18 610 million (2014: R15 874 million) and normalised EBITDA, which excludes the effect of a positive adjustment to past service costs of the Hirslanden pension fund and a pre-acquisition Swiss tariff provision charge, was 10% higher at R3 614 million (2014: R3 297 million). The weakening in the average rand/Swiss franc exchange rate for the year positively impacted the financial numbers above, with revenue and normalised EBITDA increasing by 9% and 2% respectively at constant foreign exchange rates.

Mediclinic Middle East owns and operates the Welcare Hospital and the City Hospital in Dubai. Revenue from the Middle East platform increased by 26% to R4 305 million (2014: R3 416 million) for the year under review, while EBITDA increased by 25% to R940 million (2014: R752 million). The weakening in the average rand/UAE dirham exchange rate for the year positively impacted the financial numbers above, with revenue and EBITDA increasing by 16% and 15% respectively at constant foreign exchange rates. This growth was achieved due to a good performance from all business units, as inpatient hospital admissions increased by 6%, while hospital outpatient consultations and visits to the emergency units increased by 8% each. Clinic outpatient consultations increased by 14%.

The group remains uniquely positioned across three diverse international operating platforms and continues to invest for growth across these platforms. An interest of 29.9% in Spire Healthcare Group Plc, a private hospital group operating in the United Kingdom and listed on the London Stock Exchange, has been acquired subsequent to the end of its financial year.