Netcare reports 10.4% increase in revenue - CNBC Africa

Netcare reports 10.4% increase in revenue

Earnings

by admin 0

Stethoscope. PHOTO: Getty Images.

Group revenue from the private healthcare company’s continuing operations was up 10.4 per cent to 27.8 million rand. 

Netcare Limited reported a 10.4 per cent increase in revenue for the year ended 30 September 2013.

Group revenue from the private healthcare company’s continuing operations was up 10.4 per cent to 27.8 million rand. 

[DATA NTC:Netcare] operations in South Africa and United Kingdom also grew in revenue in respective local currencies. Group also reported that net debt was significantly reduced from 26.4 million rand to R4.8 million rand.

“The Netcare Group's financial results for the year reflect a strong trading performance from the South African operations and further improvement from our operations in the United Kingdom,” the group said in a statement.

Adjusted headline earnings per share from continuing operations rose 25.4 per cent to 142.0 cents. This was a significant increase from 2012’s 113.2 cents.

The current year’s results have however been structurally impacted by the group’s deconsolidation of the General Healthcare Group (GHG) Property Businesses. The property business comprises 35 UK hospital properties which were initially acquired in 2006, and six hospital properties which were acquired in 2008.

The GHG Property Businesses were deconsolidated from 16 November 2012, and a non-cash profit of 3.2 million rand on the deconsolidation was also recognised in the group’s results.

Revenue for South Africa’s divisions grew 6.2 per cent to 15.5 million rand from 14.6 million rand.

Operating profit also rose by 11.7 per cent to 2.7 million rand from 2.4 million rand. Adjusted HEPS for the division increased 14.4 per cent to 139.7 cents from 122.1 cents in 2012.

Revenue from hospitals and emergency services grew 8.6 per cent to 14.3 million rand from 13.2 million rand in 2012.

Patient days grew by 2.7 per cent, while net revenue per patient day increased 5.7 per cent.

The division also invested in 70 new beds in the year. Netcare Bronkhorstspruit Hospital was however closed during the year, which resulted in the loss of 43 beds. The total number of beds at year-end was 9,289 beds from 9,262 beds in 2012.

Construction of a new 100-bed hospital in Pinehaven, Johannesburg, and a new 109-bed hospital in Polokwane are due to begin, with commissioning expected in 2015.

“In addition to expanding our ability to service the escalating demand for healthcare, a portion of our capital investment has been allocated to projects focused on reducing the division's carbon footprint,” the group added.

Revenue from continuing operations for the group’s United Kingdom division grew 2.1 per cent to 851.3 million pounds from 834 million pounds in 2012.

Net financial expenses from continuing operations of 36 million pounds however decreased significantly from the previous year’s 129.2 million pounds mainly due to the deconsolidation.

“There is continued growth in demand for private healthcare services in SA and this is likely to grow as levels of employment increase. We intend to service this demand through further capital investment,” the group said.

“In December 2011, the SA Competition Commission announced its intention to conduct an inquiry into the private healthcare sector. We stand ready to contribute positively towards this process and the development of health policy that aims to improve access to quality healthcare in SA.”

Netcare operations in South Africa and United Kingdom also grew in revenue in respective local currencies. Group also reported that net debt was significantly reduced from 26.4 million rand to R4.8 million rand.

“The Netcare Group's financial results for the year reflect a strong trading performance from the South African operations and further improvement from our operations in the United Kingdom,” the group said in a statement.

Adjusted headline earnings per share from continuing operations rose 25.4 per cent to 142.0 cents. This was a significant increase from 2012’s 113.2 cents.

The current year’s results have however been structurally impacted by the group’s deconsolidation of the General Healthcare Group (GHG) Property Businesses. The property business comprises 35 UK hospital properties which were initially acquired in 2006, and six hospital properties which were acquired in 2008.

The GHG Property Businesses were deconsolidated from 16 November 2012, and a non-cash profit of 3.2 million rand on the deconsolidation was also recognised in the group’s results.

Revenue for South Africa’s divisions grew 6.2 per cent to 15.5 million rand from 14.6 million rand.

Operating profit also rose by 11.7 per cent to 2.7 million rand from 2.4 million rand. Adjusted HEPS for the division increased 14.4 per cent to 139.7 cents from 122.1 cents in 2012.

Revenue from hospitals and emergency services grew 8.6 per cent to 14.3 million rand from 13.2 million rand in 2012.

Patient days grew by 2.7 per cent, while net revenue per patient day increased 5.7 per cent.

The division also invested in 70 new beds in the year. Netcare Bronkhorstspruit Hospital was however closed during the year, which resulted in the loss of 43 beds. The total number of beds at year-end was 9,289 beds from 9,262 beds in 2012.

Construction of a new 100-bed hospital in Pinehaven, Johannesburg, and a new 109-bed hospital in Polokwane are due to begin, with commissioning expected in 2015.

“In addition to expanding our ability to service the escalating demand for healthcare, a portion of our capital investment has been allocated to projects focused on reducing the division's carbon footprint,” the group added.

Revenue from continuing operations for the group’s United Kingdom division grew 2.1 per cent to 851.3 million pounds from 834 million pounds in 2012.

Net financial expenses from continuing operations of 36 million pounds however decreased significantly from the previous year’s 129.2 million pounds mainly due to the deconsolidation.

“There is continued growth in demand for private healthcare services in SA and this is likely to grow as levels of employment increase. We intend to service this demand through further capital investment,” the group said.

“In December 2011, the SA Competition Commission announced its intention to conduct an inquiry into the private healthcare sector. We stand ready to contribute positively towards this process and the development of health policy that aims to improve access to quality healthcare in SA.”

Comments