Final Results

RNS Number : 6674M

Mediclinic International plc

25 May 2022

 

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 

LEI: 2138002S5BSBIZTD5I60

South African income tax number: 9432434182

('Mediclinic', or the 'Company', or the 'Group')

25 May 2022

MEDICLINIC INTERNATIONAL PLC 2022 FULL-YEAR RESULTS ANNOUNCEMENT

Mediclinic announces its results for the year ended 31 March 2022 (the 'period' or 'FY22'). For comparative purposes, the year ended 31 March 2021 ('FY21') is presented alongside the year ended 31 March 2020 ('FY20'), the latter representing a pre-pandemic period.

	Strong financial performance with revenue exceeding pre-pandemic levels
●	Group revenue up 8%, driven by increase in client activity; revenue up 5% on pre-pandemic levels
●	Material improvement in Group adjusted EBITDA margin to 16.1% (FY21: 14.2%; FY20: 17.5%)
●	Group adjusted earnings per share ('EPS') increased 65% to 22.6p (FY21: 13.7p; FY20: 24.0p)
●	Reduced the leverage ratio to 3.9x (FY21: 5.1x), below pre-pandemic levels (FY20: 4.3x)
●	Proposed dividend re-instatement at 3.00 pence per share (FY21: nil)
	Continued delivery against key priorities
●	Dealing with the pandemic effectively, caring for around 85 000 COVID-19 inpatients since its onset
●	Progressing towards pre-pandemic profitability, with FY22 performance in line with improved outlook
●	Executing on Group strategy, positioning the Company as an integrated healthcare partner
●	Further improving value to all stakeholders
	Positive FY23 outlook
●	Expect increased client activity to drive further revenue growth, margin expansion and improved earnings
●	Improving profitability and strong operating cash flows expected to support continued deleveraging
●	Executing on opportunities to grow across the continuum of care
●	Enhancing digital healthcare solutions for clients and healthcare professionals
●	Investing in ESG initiatives to deliver on sustainable development strategy and achieve 2030 targets
	Statutory results
●	Operating profit up 34% to £280m (FY21: £209m)
●	Earnings and EPS both up 122% to £151m (FY21: £68m) and 20.5 pence (FY21: 9.2 pence), respectively

Dr Ronnie van der Merwe, Group Chief Executive Officer of Mediclinic, said:

'The Group delivered a strong operational and financial performance this year, driven by increased client activity across our care settings. As disruption from the pandemic receded, the fundamental demand for our broad range of healthcare services drove inpatient and day case revenue up 7%, and outpatient revenue up 10% compared with the prior year. Encouragingly, revenue and earnings exceeded pre-pandemic FY20 levels in all three divisions. Importantly, we have delivered these results while fulfilling our critical role in helping communities to navigate the pandemic, caring for around 43 000 COVID-19 inpatients this year, in addition to the 42 000 in the prior year. The profound impact of this work and supporting vaccination programmes is truly humbling and is a testament to the tireless efforts of our exceptional teams.

'Mediclinic's success this year is due to the dedication and commitment of our people and the trust our clients have in the Group to meet their healthcare needs. We are also benefitting from the ongoing delivery of our clear strategy to position the Company as an integrated healthcare partner, harnessing data, technology and innovation as we grow across the continuum of care.

'In the year ahead, we expect to benefit from a continued increase in client activity which will drive further improvement in our profitability and earnings. Our sustainable development initiatives give me confidence in the Group's ability to strengthen its leading market positions, delivering value and sustained success over the coming years.'

Group FINANCIAL SUMMARY

	FY22 £'m	FY21 £'m	Variance FY22 vs FY211	FY202 £'m	Variance FY22 vs FY201
Reported results
Revenue	3 233	2 995	8%	3 083	5%
Operating profit	280	209	34%	(184)	253%
Earnings3	151	68	122%	(320)	147%
EPS (pence)	20.5	9.2	122%	(43.4)	147%
Total dividend per share (pence)	3.00	‐	100%	3.20	(6)%
Adjusted results4
Adjusted EBITDA	522	426	22%	541	(3)%
Adjusted operating profit	311	221	41%	327	(5)%
Adjusted earnings	167	101	65%	177	(6)%
Adjusted EPS (pence)	22.6	13.7	65%	24.0	(6)%
Net incurred debt5	1 269	1 483	(14)%	1 622	(22)%
Cash conversion6	127%	77%		109%

1	The percentage variances are calculated in unrounded sterling values and not in millions.
2	2020 Full-year Results Announcement was published on 2 June 2020.
3	Reported earnings refers to profit for the year attributable to equity holders.
4	The Group uses adjusted income statement reporting as non-IFRS measures in evaluating performance and to provide consistent and comparable reporting. See the policy and 'Reconciliations' section on pages 13 - 20 of this announcement.
5	Net incurred debt reflects bank borrowings and excludes IFRS 16 lease liabilities.
6	See calculation on page 19 of this announcement.

DIVIDEND POLICY AND PROPOSED DIVIDEND

The Group's existing dividend policy is to target a payout ratio of between 25% to 35% of adjusted earnings. The Board may revise the policy at its discretion.

The Board proposes a final dividend from retained earnings of 3.00 pence per ordinary share for the year ended 31 March 2022 for approval by the Company's shareholders at the annual general meeting on Thursday, 28 July 2022.

Shareholders on the South African register will be paid the South African rand cash equivalent of 59.53230 cents (47.62584 cents net of dividend withholding tax) per share. A dividend withholding tax of 20% will be applicable to all shareholders on the South African register who are not exempt therefrom. The South African rand cash equivalent has been calculated using the following exchange rate: GBP1: ZAR19.8441, being the 5-day average ZAR/GBP exchange rate (Bloomberg) on Friday, 20 May 2022 at 3:00pm GMT.

The final dividend will be paid on Friday, 26 August 2022 to all ordinary shareholders who are on the register of members at the close of business on the record date of Friday, 5 August 2022.

The salient dates for the dividend will be as follows:

Dividend announcement date Wednesday, 25 May 2022

Last date to trade cum dividend (SA register) Tuesday, 2 August 2022

First date of trading ex-dividend (SA register) Wednesday, 3 August 2022

First date of trading ex-dividend (UK register) Thursday, 4 August 2022

Record date Friday, 5 August 2022

Payment date Friday, 26 August 2022

Share certificates may not be dematerialised or rematerialised within Strate from Wednesday, 3 August 2022 to Friday, 5 August 2022, both dates inclusive. No transfers between the United Kingdom and South African registers may take place from Wednesday, 25 May 2022 to Friday, 5 August 2022, both days inclusive.

FURTHER INFORMATION

Mediclinic's full preliminary statement of results for the year ended 31 March 2022 is available at http://www.rns-pdf.londonstockexchange.com/rns/6674M_1-2022-5-24.pdf and on www.mediclinic.com .

It has also been submitted in full unedited text to the Financial Conduct Authority's National Storage Mechanism and is available for inspection at data.fca.org.uk/#/nsm/nationalstoragemechanism in accordance with DTR 6.3.5(1A) of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

 

END

 

 

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