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, Switzerland and the United Kingdom.
Mediclinic International PLC (Mediclinic)
Mediclinic has a March year-end and therefore its results for the 12 months to 31 March 2016 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 566 million (2015: R1 734 million). The company had a solid operating performance and the weaker rand had a positive impact on its results. Excluding once-off items and transaction costs in both years, Mediclinic’s contribution to Remgro’s headline earnings increased by 36.1% from R1 434 million to R1 952 million.
During the year under review, Mediclinic successfully completed two corporate actions: the acquisition of a 29% interest in Spire Healthcare Group plc (Spire), and the reverse takeover of Al Noor Hospital Group plc (Al Noor). The Al Noor transaction boosted Mediclinic’s presence on an international scale, doubling the size of its business in the United Arab Emirates, and securing a listing as a FTSE 100 company on the London Stock Exchange. The investment in Spire established a footprint in the dynamic UK healthcare markets.
Mediclinic’s turnover for the financial year ended 31 March 2016 increased by 7% to £2 107 million (2015: £1 977 million), with strong performances from all three operating platforms. The group believes that underlying earnings more accurately reflect operational performance and therefore headline earnings are adjusted to take into account non-operational and once-off items. The group’s underlying earnings increased by 13% from £193 million to £219 million. The growth was achieved due to a good performance from all business units, driven by increased patient volumes.
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 6% to CHF 1 657 million (2015: CHF 1 563 million) and underlying EBITDA was 7% higher at CHF 325 million (2015: CHF 303 million). In pound terms, revenue increased by 8% to £1 130 million (2015: £1 044 million) and underlying EBITDA by 9% to £221 million (2015: £203 million). These increases were mainly as a result of increased patient volumes, as well as cost-containment measures that were implemented during the previous year.
Mediclinic Southern Africa’s revenue increased by 9% to R13 450 million (2015: R12 323 million) for the year under review, mainly due to a 2.9% increase in bed-days sold and a 6.3% increase in the average income per bed-day. Underlying operating income before interest, taxation, depreciation and amortisation (EBITDA) increased by 10% to R2 877 million (2015: R2 625 million) and the Southern African operations contributed R1 305 million (2015: R1 118 million) to Mediclinic’s underlying earnings. In pound terms, revenue decreased by 6% to £649 million (2015: £691 million) and underlying EBITDA by 5% to £139 million (2015: £147 million).
Mediclinic Middle East owns and operates the Welcare Hospital and the City Hospital in Dubai, as well as the Al Noor Hospital Group that was acquired on 15 February 2016. Commentary excludes Al Noor’s results. Revenue from Mediclinic Middle East increased by 8% to AED 1 544 million (2015: AED 1 430 million) for the year under review, while underlying EBITDA increased by 11% to AED 345 million (2015: AED 312 million). In pound terms, revenue increased by 15% to £279 million (2015: £242 million) and underlying EBITDA by 17% to £62 million (2015: £53 million).
The group remains uniquely positioned across four diverse international operating platforms and continues to invest for growth across these platforms.