Pre-Close Trading Update

RNS Number : 6079T

Mediclinic International PLC

31 March 2016

 

Mediclinic International plc
(Incorporated in England and Wales)
Company Number: 08338604
LSE Share Code: MDC

JSE Share Code: MEI
NSX Share Code: MEP

ISIN: GB00B8HX8Z88

31 March 2016

PRE-CLOSE TRADING UPDATE

Mediclinic International plc, the international private healthcare group, provides the following pre-close trading update for the 11 months ended 29 February 2016, ahead of the publication of its preliminary results for the financial year ending 31 March 2016.

Operational and corporate highlights

·           Continued strong patient growth across all operating platforms at stable margins

·           Successful completion of the combination of Mediclinic and Al Noor Hospitals Group plc ("Al Noor") on 15 February 2016

·           Group net debt for the year end is expected to be below GBP1.65 bn

·           Acquisition of 29.9 % of Spire Healthcare Group plc

Group trading for the eleven months ended 29 February 2016 (Local currency revenues quoted for each operating platform)

Mediclinic Southern Africa

Total revenues have grown to R12, 264 m and patient bed days by 3.6 %. Excluding the contribution of Mediclinic Midstream, which was opened in March 2015, revenues would have grown  to R12, 040 m and patient bed days by 2.2 %. Given the timing of Easter holidays occurring in March 2016 versus April 2015 we expect a year on year impact on year-end revenues.

For the period under review, 2 day clinics were opened in Limpopo and Durbanville as well as 80 additional beds created in Pietermaritzburg, Cape Gate, Victoria, and Gariep.

Hirslanden Switzerland

Total revenues have grown to CHF1, 494m and inpatient bed days by 4.0 %. Excluding the contribution of Hirslanden Clinique La Colline and Hirslanden Klinik Meggen, which were acquired in the 2014/2015 financial year, revenues increased to CHF 1, 426 and inpatient bed days by 2.9 %. Given the timing of Easter holidays occurring in March 2016 versus April 2015, a year on year impact on March revenues is expected. As previously guided EBITDA margins have stabilised.

For the period under review 10 new inpatient beds were created in Hirslanden Klinik Aarau, and 24 new inpatient beds and an emergency room completed at Hirslanden Klinik Stephanshorn. New outpatient facilities were opened in Düdingen (canton of Fribourg) and a radiology institute in Lausanne, as well as a new day clinic and hybrid operating theatre at Hirslanden Clinique Cecil.  A radiology unit and consulting rooms were completed at Hirslanden Klinik Birshof. Technology investments at a number of hospitals were also completed in line with previous growth project guidelines.

Mediclinic Middle East

Mediclinic Middle East (excluding Al Noor) total revenues have grown  to AED1, 399m, bed day growth by 5.9 %, and outpatient and accident and emergency patient attendance by 3.7 %.

Al Noor operating performance is in line with management's expectations.

The integration of the Al Noor and Mediclinic Middle East businesses is well underway with a new leadership and management team in place. A further update on the progress and actions will be provided with the year end results.

The 40 bed Al Jowhara Hospital in Al Ain is expected to be commissioned in Q2 2016. The City Hospital Northwing expansion, creating an integrated oncology centre as well as additional outpatient services and an additional 80 inpatient and day beds, is expected to be completed in Q3 2016. The development of the new 188 bed Mediclinic Parkview Hospital and the 100 bed Al Noor Airport Road extension have both commenced and are on track for completion in Q1 2019.

Corporate

Mediclinic / Al Noor combination

The Mediclinic and Al Noor combination was concluded on 15 February 2016. For the 2015/2016 year end the weighted number of shares in issue will be 599 million and 737 million for the 2016/2017 financial year.

Group debt increased by drawing GBP 313 m of the GBP 400 m available bridge facility to fund the tender offer to Al Noor shareholders. Group net debt for the full year is expected to be below GBP 1.65bn. The refinancing of the bridge is underway and details will be provided on conclusion thereof.

Mpilo trusts

The Mpilo trusts were created in 2005 as part of a 10 year group Black Economic Empowerment initiative. The underlying shares were successfully sold in two book building exercises previously announced in December 2015 and January 2016 and overall a gross ZAR1.4 bn has been distributed to beneficiaries. A non-cash IFRS 2 charge of approximately GBP 10 m will accordingly be applicable which will be treated as non-underlying.

Comment from Danie Meintjes

"This is Mediclinic's first trading update following our entry into the FTSE 100. We are pleased to announce trading for the 11 months to the end of February has been in line with management's expectations. The Group continues to deliver against its key performance indicators with growth in patient activity across all platforms at stable margins. With the Al Noor transaction completing on 15 February, we are now focused on the smooth integration of the business.

We expect the increase in demand for cost-effective quality hospital services across all our operating platforms to continue leading to further volume growth and increasing clinical complexity. Each platform has different challenges and all have specific opportunities. However, in line with industry trends, we are continuing to see the impact on our business of ongoing regulatory initiatives and increasing competition. We strive to differentiate ourselves from our peers in terms of our focus on patients, quality and safety. Leveraging on our Group strength, our platform distribution and our combined knowledge will allow us to unlock further benefits for both patients and shareholders."

Full Year Results Announcement

The Company expects to make the announcement of its preliminary results for the financial year ending 31 March 2016 on 25 May 2016.

Conference Call Details

A conference call hosted by Danie Meintjes Chief Executive and Craig Tingle Chief Financial Officer is scheduled for 8.00 am (BST) and 9.00 am (SA).

The dial-in details are below:

[phone]

Participants should state they wish to join the Mediclinic Trading Update conference call. No password is required.

Registered address: 1st Floor, 40 Dukes Place, London, EC3A 7NH, United Kingdom

Website: www.mediclinic.com

JSE sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited)

NSX sponsor: Simonis Storm Securities (Pty) Ltd

For further information please contact:

Mediclinic International

Craig Tingle, Chief Financial Officer

Gert Hattingh, Executive Group Services

[phone]

Bell Pottinger

Liz Morley/Aarti Iyer

[phone]

 

END

 

 

TSTLLFIRVDIIVIR