HIGHLIGHTS

Paid patient days (PPDs):
+1,5%
  REVENUE:
+7,0% TO R5 638 million
  Operating profit :
+12,7% to R1 361 million
  Normalised earnings
per share:
+14,5% to 71,3 cents
  interim CASH DIVIDEND:
+20% tO 54 cents

COMMENTARY

Overview

Life Healthcare continued to grow during the six months ended 31 March 2013 adding 80 (2012: 154 beds) acute care hospital and mental health beds during the period to meet the growing demand for services.The growth in hospital paid patient days (PPDs) of 1,5% was adversely impacted by the number of public holidays in the second half of March compared to 2012. Efficiencies remain a priority with an occupancy of 69,0% (2012 – 70,3%) being achieved on an increased number of active beds, supported by cost containment programmes. The clinical quality programmes continue to deliver improved medical outcomes as measured by our key clinical indicators as well as decreasing our Healthcare Acquired Infection (HAI) rate.

The Group’s investment in Max Healthcare, India resulted in a negative contribution of 4 cps for the six-month period (2012: 2 cps for the two-month period). Max Healthcare, India however, showed a good improvement in revenue for the last six months as occupancies improved and additional beds at the new facilities became operational. Business efficiency programmes resulted in EBITDA margins improving at hospital level.

Financial performance

Group revenue increased by 7,0% to R5 638 million (2012: R5 271 million). Hospital division revenue increased by 6,5% to R5 226 million (2012: R4 905 million) driven by the 1,5% increase in PPDs and higher revenue per PPD of 5,0%. The six months to 31 March resulted in a higher proportion of medical cases over surgical cases which diluted the revenue growth per PPD by approximately 1,5%. Healthcare Services revenue increased by 12,3% to R410 million (2012: R365 million) due to improved performances from both Life Esidimeni and Life Occupational Health.

The Group continues to focus on driving efficiencies across the business to ensure services remain affordable and to improve margins. The alternative reimbursement model (ARM) provides an incentive to actively manage input costs, which together with the strong management in procurement, employment costs and overheads allowed the Group to leverage efficiencies across its fixed cost base resulting in an operating profit increase of 12,7% to R1 361 million (2012: 1 208 million)... read more

FINANCIAL STATEMENTS

arrow Condensed consolidated statement of comprehensive income
arrow Consolidated statement of comprehensive income
arrow Condensed consolidated statement of financial position
arrow Consolidated statement of financial position
arrow Condensed consolidated statement of cash flows
arrow Consolidated statement of cash flows
arrow Condensed consolidated statement of changes in equity
arrow Segmental report
arrow Acquisition of investments

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