Interim Results

RNS Number : 5179G

Mediclinic International plc

16 November 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')

16 November 2022

MEDICLINIC INTERNATIONAL PLC 2023 HALF-YEAR RESULTS ANNOUNCEMENT

Mediclinic announces its results for the six months ended 30 September 2022 (the 'period' or '1H23'); comparative figures are drawn from the Group's results for the six months ended 30 September 2021 ('1H22').

GROUP FINANCIAL SUMMARY

	Reported results			Adjusted results1
	1H23 £'m	1H22 £'m	Variance2	1H23 £'m	1H22 £'m	Variance2
Revenue	1 731	1 581	10%	1 731	1 581	10%
Adjusted EBITDA				246	249	(1)%
Operating profit	119	129	(8)%	131	147	(11)%
Earnings3	83	65	28%	67	80	(15)%
EPS (pence)	11.3	8.8	28%	9.1	10.8	(15)%
Net incurred debt4				1 412	1 269	11%
Cash conversion5				72%	104%

●	Group revenue increased by 10% compared with 1H22 (up 2% in constant currency)
●	Patient volumes impacted by pronounced seasonality; average revenue per case reduced due to mix changes
●	Group adjusted EBITDA decreased by 1% compared with 1H22 (down 8% in constant currency), with an adjusted EBITDA margin of 14.2% (1H22: 15.8% ), reflecting revenue impact and increased operating expenses
●	Adjusted operating profit of £ 131 m decreased by 11% compared with 1H22 (down 20% in constant currency)
●	Operating profit down 8% to £ 119 m (1H22: £ 129 m)
●	Adjusted earnings and adjusted EPS decreased by 15% compared with 1H22
●	Reported earnings up 28% to £ 83 m (1H22: £ 65 m) and reported EPS up 28% to 11.3 pence (1H22: 8.8 pence)
●	Operating performance and cash conversion of 72% (1H22: 104% ) delivered cash and cash equivalents to £ 445 m (FY22: £534m)
●	Leverage ratio (including lease liabilities) at 4.4 x (FY22: 3.9x), reflecting foreign exchange translation differences and lower cash conversion

1	The Group uses adjusted income statement reporting as non-IFRS measures in evaluating performance and to provide consistent and comparable reporting.  Refer to the policy and 'Reconciliations' section on pages 9-14 of the full statement of results referred to in the section on "Further Information" below.
2	The percentage variances are calculated in unrounded sterling values and not in millions.
3	Earnings refers to earnings attributable to equity holders.
4	Net incurred debt reflects bank borrowings and excludes IFRS 16 lease liabilities.
5	Refer to calculation on page 13 of the full statement of results referred to in the section on "Further Information" below .

OFFER FOR MEDICLINIC

On 4 August 2022, the boards of Mediclinic, Manta Bidco Limited ('Bidco') (a newly formed company owned by joint offerors: [i] Remgro Limited ['Remgro'] [through certain subsidiaries]; and (ii) SAS Shipping Agencies Services S.à r.l. ['SAS'], a wholly owned subsidiary of MSC Mediterranean Shipping Company SA), Remgro and SAS announced that they had reached agreement on the terms of a recommended cash offer by Bidco for the entire issued and to be issued share capital of Mediclinic not already owned indirectly by Remgro (the 'Scheme Shares'), of 504 pence per Mediclinic share (including the final dividend of 3 pence per Mediclinic share declared by Mediclinic on 25 May 2022 and approved at the Mediclinic Annual General Meeting ['AGM'] on 28 July 2022) (the 'Acquisition').

The Acquisition is being implemented by means of a court sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 (the 'Scheme'), and the Scheme is conditional on regulatory and other approvals. Merger control approvals have been received in Namibia, Switzerland and Cyprus with only South African approvals outstanding. On 26 September 2022, Mediclinic announced that it had received the requisite majorities at the shareholder meetings convened in connection with the Acquisition, held in London earlier that day. The Scheme was approved by 96% of Mediclinic shareholders voting at the Court convened shareholder meeting, and the implementation of the Scheme was approved by 98% of Mediclinic shareholders voting at the subsequent general meeting.

The Scheme remains subject to the satisfaction or (where applicable) waiver of the remaining conditions set out in the Scheme circular published on 30 August 2022 (the 'Scheme Document'), including sanction by the Court. The Scheme is currently expected to become effective in the first quarter of 2023, following which Mediclinic shares will be delisted from the London Stock Exchange, JSE and Namibian Stock Exchange.

DIVIDEND policy and dividend declaration

The Group's dividend policy is to target a pay-out ratio of between 25% to 35% of full-year adjusted earnings. The Board may revise the policy at its discretion.

As referenced in the Scheme Document, Bidco has reserved the right to reduce the acquisition price by the amount of any dividend declared prior to the date on which the Scheme becomes effective. Consequently, the Board has considered it appropriate to not propose an interim dividend.

FURTHER INFORMATION

Mediclinic's full statement of results for the period ended 30 September 2022 is available at http://www.rns-pdf.londonstockexchange.com/rns/5179G_1-2022-11-15.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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