| Imagery Source: Life Healthcare Group Holdings Limited |
| Information Source: Share Net |
| Life Healthcare had a significant year in which it returned substantial funds to shareholders following the conclusion of the Life Molecular Imaging (LMI) disposal. Total funds distributed to the shareholders via special distributions in the twelve months from 1 October 2024 to 30 September 2025 (“the current year” or “FY2025”) amounted to R4.5 billion compared to R8.8 billion in the twelve months from 1 October 2023 to 30 September 2024 (“prior year” or “FY2024”). |
| The Group delivered a good trading performance in the large majority of its facilities. The results were negatively impacted by a few facilities operating below expectations, as well as the renal dialysis business acquired from Fresenius Medical Care (FMC). |
| Trading and result highlights |
| Life Healthcare provides shareholders with a voluntary trading update covering the current year. All commentary relates to results for the current year, and comparisons are to the prior year unless otherwise stated. |
| The Group delivered good overall revenue growth between 5.5% and 6.5% driven by paid patient days (PPDs) increasing by c.1.1%1, supported by a 5.1% tariff increase. The acute business revenue growth for the year was c. 5.0% with acute PPDs growing by c.0.9%. On a like-for-like basis, the acute revenue increased between 6.1% and 6.5%. Complementary services revenue growth was c. 24.7% benefiting from acquisitions, and PPDs grew by c.3.1%. Healthcare services businesses’ revenue declined by c. 7.5 %, impacted by the loss of two government contracts during H2-FY2024. |
| The weighted average occupancy for FY2025 was 69.7% vs FY2024 of 69.0%. |
| Normalised EBITDA2 increased between 4.5% and 5.0%. On a like-for-like basis, the normalised EBITDA increased between 6.6% and 7.1%. The Group’s normalised EBITDA margin remained stable in H1-FY2025 and H2-FY2025, with the acute business delivering an improved margin. The overall margin for the current year, compared to the prior year, was dampened by: |
- Lower margin contribution from the renal dialysis business acquired from FMC. Significant progress was made in H2-FY2025 in improving the margin; however, this margin still dilutes the overall EBITDA margin, and
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- Ongoing overall cost pressures, with inflationary increases outpacing tariff increases.
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| The Group has identified assets in its portfolio that form part of an optimisation plan with focused executive attention thereon. In considering the overall performance of the Group, if these specific facilities are excluded: |
- PPDs increased by more than 2.0%; and
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- Overall occupancy of c.72% is achieved.
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| The Group’s result for the current year includes the financial impact of the disposal of LMI. The result for the prior year includes the disposal of the Alliance Medical Group (AMG). |
| Trading statement |
| The disposals of LMI in the current year and AMG in the prior year significantly impacted earnings in both periods. Comparability between the two financial years is complex. The International Financial Reporting Standards, as issued by the International Accounting Standards Board (IFRS Accounting Standards), require any adjustments to the liability relating to Piramal Enterprises Limited (Piramal)to be included as part of continuing operations (due to it being a pre-existing obligation), but any future adjustments to the potential earnouts and milestones payments to be disclosed as part of discontinued operations. |
| The table below summarises the expected earnings for the current year and includes the impact of the adjustment to the Piramal liability (associated with LMI). The table also includes impairments of c.R210 million in respect of underperforming units. |
| For the full document, click the link below |
| Life Healthcare Group Holdings Limited |
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