South Africa: Life Healthcare 2025, expansion and innovation pay off with strong interim performance
Life Healthcare Group Holdings Limited has announced its interim results for the six months ended 31 March 2025, highlighting robust operational growth, strategic capacity expansion, and continued investment in key healthcare initiatives across Southern Africa.
'We are pleased with the solid financial results from our core operations, particularly the growth in normalised earnings per share. Our balance sheet remains strong, with net debt to normalised EBITDA at 0.65 times, well within our covenant requirement of 3.5 times.
"Cash generated from continuing operations was R2bn, representing 105.3% of normalised EBITDA, enabling us to confidently invest in strategic growth projects across both our acute hospitals and complementary services,' said Pieter van der Westhuizen, chief financial officer.
This strong financial foundation underpins Life Healthcare's operational progress and its continued investment in meeting rising demand for high-quality healthcare across the region.
Operational performance highlights
During the first half of the financial year, Life Healthcare's Southern African operations delivered solid growth, driven by increased patient activity and improved occupancy rates.
Paid patient days (PPDs) rose by 2.0% compared to the prior period, with overall occupancies advancing to 68.6%. Revenue from continuing operations increased by 8.1% to R12.1bn, supported by a favourable case mix and an annual tariff adjustment of 5.1%.
Hospital normalised EBITDA grew by 8.3%, underscoring the resilience and relevance of the Group's core healthcare services in a dynamic healthcare environment.
Strong core earnings
From a financial perspective, normalised earnings per share (NEPS) from continuing operations increased by 9.1% to 49.0 cents reflecting the strength and stability of the underlying business.
Reported earnings per share (EPS) and headline earnings per share (HEPS) are negative for the period, primarily due to a R2.9bn fair-value loss on contingent consideration related to the pending LMI disposal and the absence of the R2.8bn once-off gain from the prior year disposal of Alliance Medical Group.
These are non-cash, once-off accounting items that do not impact cash flow or the operational trajectory of the core business. Pro-forma adjustments confirm the Group's underlying performance remains robust.
The Board has declared an interim gross cash dividend of 21.0 cents per ordinary share, an increase of 10.5% compared to the prior period. The last date to trade cum dividend is Tuesday, 10 June 2025, with the record date on Friday, 13 June 2025, and payment on Tuesday, 17 June 2025.
Strategic development and outlook
Peter Wharton-Hood, chief executive officer, commented, 'Our strong performance in the first half of the year underscores the ongoing demand for high-quality healthcare services across our markets and validates our growth strategy.
"The new hospital build project in Paarl marks a significant milestone in meeting future regional healthcare needs and exemplifies our commitment to expanding access and improving care delivery.'
For FY2025, the Group plans to grow its underlying asset base by adding 58 acute hospital beds, 24 acute rehabilitation beds, one cathlab, one vascular lab, alongside further expansion of the diagnostics business with two new PET-CT sites expected to be completed in H2-2025, as well as the completion of two imaging transactions. Capital expenditure for the year is expected to reach R2.3bn.
The Group continues to drive occupancy improvements, as well as focusing on operational efficiencies and asset optimisation. The business remains firmly on track to meet its 2025 outlook guidance.
The pending sale of LMI is progressing well and is expected to close in the second half of 2025, representing a key milestone in the Group's portfolio optimisation strategy.
Looking ahead to the second half of the year, Life Healthcare will continue prioritising capital allocation, executing its growth initiatives, and delivering long-term value to stakeholders through a pipeline of expansion projects and innovative services.
Wharton-Hood expressed gratitude to the team members for their contribution to the Group's strong results. 'We sincerely thank our dedicated Life Healthcare employees, doctors, healthcare professionals, and the LMI team for their resilience, commitment, and unwavering support in exceptional care and advancing our strategic initiatives,' he said.
All rights reserved. © 2022. Bizcommunity.com Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
37 minutes ago
- Zawya
FUJIFILM doubles down on its Middle East presence with launch of new offices at Expo City Dubai
DUBAI: FUJIFILM Middle East and Africa today inaugurated its new offices at Expo City Dubai – an innovation-driven, people-centric community designed as a blueprint for sustainable urban living and the new centre of Dubai's future. The launch of its new offices is part of the company's future-facing mindset, as well as efforts to increase proximity to end-consumers and key partners. The site will also be home to FUJIFILM Technology Center (FTC), which will showcase the company's innovative offerings. The Japanese company brings world-renowned expertise and innovations to some of the region's vital sectors. As a global leader in healthcare, imaging and printing technologies, the firm supplies cutting-edge solutions in the UAE such as innovative diagnostic imaging systems helping raise the standard of care in the country and contributing to its development goals. The company is also preparing to launch AI-driven screening centers (NURA) in the UAE, reflecting its commitment to early detection and better health outcomes. FUJIFILM Technology Center (FTC), meanwhile, will offer professional training for employees, business partners and end-users in the Middle East, Africa, Europe, and Asia. The center is equipped with a comprehensive range of FUJIFILM solutions for live demonstrations, allowing visitors to try and test multiple products and services. Ken Okaniwa, Ambassador of Japan to the UAE, said: 'We welcome the inauguration of FUJIFILM's new offices and Technology Center in Expo City Dubai. This new investment by Japan's top company in healthcare, imaging and printing reflects the excellent relations between Japan and the UAE as well as the strategic position of the UAE as a global hub for business. I look forward to FUJIFILM's technologies contributing to better healthcare, promotion of industries and human capacity development.' Manal AlBayat, Chief Engagement Officer, Expo City Dubai, said: 'With its technologies used in vital sectors and its commitment to knowledge-sharing, FUJIFILM's choice of Expo City Dubai for its new offices and Technology Center reinforces the city's position as a hub for global businesses driving innovative solutions in the UAE and beyond. We are proud to welcome FUJIFILM to our innovation- and sustainability-focused community – an ecosystem where like-minded entities collaborate to drive meaningful progress.'
Zawya
an hour ago
- Zawya
GFH Financial Group denies plans to merge with Dubai's Shuaa Capital
Dubai-listed GFH Financial Group, an investment firm headquartered in Bahrain, has dismissed speculation that it is planning to merge with Shuaa Capital. The company clarified on Wednesday that recent social media rumours concerning a potential merger with the Dubai-based financial services firm is 'incorrect'. It said that there are 'no discussions or agreements in place regarding' the supposed merger. It further stated that it has not initiated any talks or arrangements on the matter either. 'It has not entered into any negotiations or arrangements with Shuaa Capital in this regard,' the company told the Dubai Financial Market (DFM). The company, which has investments across various sectors including infrastructure, real estate and financial services, issued the clarification amid speculation circulating on various social media platforms that the two financial firms are likely to consolidate their business. (Writing by Cleofe Maceda; editing by Seban Scaria)
Zawya
an hour ago
- Zawya
Oman: Shura Council committee holds discussion on Oman's business environment
Muscat: The Economic and Financial Committee of the Shura Council hosted HH Dr Adham Turki Al Said, Chairman of the Economic Committee at the Oman Chamber of Commerce and Industry (OCCI), and a number of specialists from the Chamber. The meeting was part of the Committee's ongoing study of a proposal concerning the competitiveness and attractiveness of Oman's business environment, aimed at supporting economic development efforts and enhancing the investment climate in alignment with Oman Vision 2040. The meeting took place during the Committee's 13th session of the second annual convening (2024–2025) of the Council's tenth term, chaired by Ahmed Said Al Sharqi, head of the Committee, with the attendance of other committee members. Discussions were held on the readiness of Oman's business and investment environment, and the key factors affecting its competitiveness and attractiveness. The Committee also reviewed OCCI's views on the Foreign Capital Investment Law (50/2019) post its -implementation, as well as the adequacy of current incentives and facilities provided to overcome obstacles facing investors. The meeting explored the role of the Chamber in assessing Oman's business climate, highlighting recent studies and their findings on the competitiveness and appeal of Oman as an investment destination. Key challenges were addressed, along with potential solutions and recommendations aimed at enhancing Oman's global business standing. The members stressed the importance of improving the innovation and entrepreneurship environment by supporting start-ups and facilitating their expansion into international markets. They also emphasized the need for effective international promotion of Oman's investment opportunities through organized marketing campaigns, and underlined the strategic importance of economic diversification, particularly by empowering sectors such as tourism and the digital economy.
