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Mediclinic News : Mediclinic nurses Al Noor back to health

Title

Mediclinic nurses Al Noor back to health

Date

2018-04-19

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News Description

INCECONNECT The private hospitals group says its Middle East division is entering a growth phase thanks to a significant improvement in Abu Dhabi Mediclinic has perked up on news that it expects to deliver year-end results ahead of expectations thanks to a significant second-half improvement from its Middle East Division. After rallying close to 5% on Monday, the stock jumped again yesterday. Its Middle East business has disappointed the market following teething problems after it bought Abu-Dhabi group Al Noor two years ago. However, it said the operating performance in Abu Dhabi is improving and it is working on strategic expansion projects. It's also expanding in neighbouring Dubai, where the 182-bed Mediclinic Parkview Hospital is expected to open in October, six months ahead of schedule. "We are succeeding with the turnaround of the Abu Dhabi business and laying the foundation for long-term, sustainable performance," CEO Danie Meintjes said in a statement. "The Middle East division is now entering an expansionary phase that we expect will drive a strong increase in revenue and improvement in margins over time." In Southern Africa, Mediclinic says second-half revenue growth has beaten expectations, while Hirslanden in Switzerland has performed in line with forecasts as it begins to absorb the initial impact of regulatory changes in that country. It says both divisions benefited from cost-saving programmes and productivity initiatives implemented during the year. Hirslanden's performance was affected by the timing of the Easter holidays and a subdued summer market. It says it continues to adapt its business model to address the trends in inpatient and outpatient activity driven by the evolving regulatory environment in Switzerland. Linde Private Hospitals, acquired last June, delivered a good operating performance. Southern African revenue is expected to increase by around 5% to R15.1 billion, with inpatient bed days decreasing by around 1.5% and revenue per bed day increasing by around 6.7%. Full-year income from Spire Healthcare, the UK group in which it holds a 29.9% interest, is expected to decline due to provisions made for the potential cost of a settlement relating to civil litigation against a consultant who previously had practising privileges at Spire. Mediclinic expects revenue for the year to end-March to be up around 2% and earnings before interest, tax, depreciation and amortisation (EBITDA) to be flat in constant currency. After the translation effect of foreign currency movements, revenue is expected to be about 4% higher at £2.9 billion and adjusted EBITDA up around 3% at £500 million. The group expects to release its full-year results on 24 May. Its shares ended trade 7.4% higher at R114.70 yesterday.
Created at 2018/04/26 10:08 AM by Mediclinic
Last modified at 2018/04/26 10:08 AM by Mediclinic