2022 Half-Year Trading Update
Mediclinic International plc
(Incorporated in England and Wales)
Company Number: 08338604
LSE Share Code: MDC
JSE Share Code: MEI
NSX Share Code: MEP
("Mediclinic", the "Company", or the "Group")
15 October 2021
2022 Half-Year Trading Update
Mediclinic, the diversified international private healthcare services group, provides the following trading update ahead of the publication of the Group's results for the six months ended 30 September 2021 ("1H22"), scheduled for 11 November 2021. The information on which this update is based represents the Group's latest financial estimates and has not been reviewed and reported on by Mediclinic's external auditors. All financial figures, unless explicitly stated, are adjusted1. For comparative purposes, 1H22 is presented alongside the six months ended 30 September 2020 ("1H21") as well as the six months ended 30 September 2019 ("1H20"), representing a pre-pandemic period.
Group revenue up 12%; ahead of pre-pandemic levels across all three divisions
Material recovery in Group EBITDA margin to around 15.5% (1H21: 12.1%)
Strong Group cash conversion at around 100% of EBITDA
Commenting today, Dr Ronnie van der Merwe, Group Chief Executive Officer, said:
"I'm pleased with how the Group continues to effectively navigate the ongoing impact of the pandemic - and we are thankful to our medical professionals and employees without whom this would not be possible. Their exemplary efforts and commitment, combined with our clinical protocols, have enabled us to safely meet the ongoing demands for our healthcare services, continue to deliver on our Group operational and strategic goals and, recover to pre-pandemic revenue at all three divisions.
"Mediclinic Southern Africa has continued to treat a significant number of COVID-19 patients, while addressing the demand for urgent and elective non-COVID-19 care. It is encouraging to see that, as South Africa transitions out of the third wave, we are observing positive trends in non-COVID-19 activity.
"The strong first-half delivered by Mediclinic Middle East, combined with a robust performance at Hirslanden in Switzerland, positions us well heading into the second-half of the year."
Despite the continued impact of and uncertainty presented by the pandemic, the Group delivered a 12% increase in revenue compared with 1H21. The performance was driven by a recovery in patient activity across all three divisions. Compared with pre-pandemic 1H20, revenue was up in all three divisions and 4% at the Group, with Hirslanden and Mediclinic Middle East delivering volumes in excess of pre-pandemic levels.
The Group delivered an EBITDA margin of around 15.5% (1H21: 12.1% and 1H20: 16.6%), benefitting from margin improvements at all three divisions compared with 1H21. Effective cost base management is an ongoing Group priority, including the current impact of COVID-19-related costs. Various initiatives have been established to support the return towards pre-COVID-19 profitability at all divisions.
The Group's cash conversion2 continued to improve, at around 100% in 1H22 (1H21: 42%; FY21: 77%), in line with the targeted 90-100%.
The Group's ongoing financial discipline and resilience were demonstrated by the increase in cash and available facilities during the first half of the year, to around £770m (1H21: £661m and FY21: £679m). Net debt at around £2 200m (1H21: £2 391m and FY21: £2 159m) includes additional lease liabilities incurred during the period due to the commissioning of the hospital expansion and new Comprehensive Cancer Centre at Mediclinic Airport Road Hospital in Abu Dhabi. The Group continues to have headroom to all covenants, either waived or effective.
Further details on 1H22 performance and the outlook will be provided with the half-year results.
Note: All 1H22 figures represent the latest financial estimates and are approximates. None of the figures have been reviewed and reported on by Mediclinic's external auditors.
1H22 vs 1H21
1H22 vs 1H20
Reported revenue (GBP'm)
EBITDA margin (%)
EBITDA margin (%)
Inpatient admissions (movement)
GBP/CHF average FX rate
Mediclinic Southern Africa
EBITDA margin (%)
Paid patient days (movement)
GBP/ZAR average FX rate
Mediclinic Middle East
EBITDA margin (%)
Inpatient admissions and day cases (movement)
Outpatient cases (movement)
GBP/AED average FX rate
1 The Group uses adjusted income statement reporting as non-IFRS measures in evaluating performance and as a method to provide shareholders with clear and consistent reporting. The Group's non-IFRS measures are intended to remove from reported earnings volatility associated with defined one-off incomes and charges.
2 Measures conversion of adjusted EBITDA into cash generated from operations.
This announcement contains certain forward-looking statements relating to the business of the Company and its subsidiaries, including with respect to the progress, timing and completion of the Group's development; the Group's ability to treat, attract and retain patients and clients; its ability to engage consultants and healthcare practitioners and to operate its business and increase referrals; the integration of prior acquisitions; the Group's estimates for future performance and its estimates regarding anticipated operating results; future revenue; capital requirements; shareholder structure; and financing. In addition, even if the Group's actual results or development are consistent with the forward-looking statements contained in this announcement, those results or developments may not be indicative of the Group's results or developments in the future. In some cases, forward-looking statements can be identified by words such as "could", "should", "may", "expects", "aims", "targets", "anticipates", "believes", "intends", "estimates", or similar. These forward-looking statements are based largely on the Group's current expectations as of the date of this announcement and are subject to a number of known and unknown risks and uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievement expressed or implied by these forward-looking statements. In particular, the Group's expectations could be affected by, among other things, uncertainties involved in the integration of acquisitions or new developments; changes in legislation or the regulatory regime governing healthcare in Switzerland, South Africa, Namibia and the United Arab Emirates ("UAE"); poor performance by healthcare practitioners who practise at its facilities; unexpected regulatory actions or suspensions; competition in general; the impact of global economic changes; the impact of pandemics, including COVID-19; and the Group's ability to obtain or maintain accreditation or approval for its facilities or service lines. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements made in this announcement will in fact be realised and no representation or warranty is given as to the completeness or accuracy of the forward-looking statements contained in this announcement.
The Group is providing the information in this announcement as of this date, and disclaims any intention to, and makes no undertaking to, publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Mediclinic International plc
Mediclinic is a diversified international private healthcare services group, established in South Africa in 1983, with divisions in Switzerland, Southern Africa (South Africa and Namibia) and the UAE.
The Group's core purpose is to enhance the quality of life.
Its vision is to be the partner of choice that people trust for all their healthcare needs.
Mediclinic is focused on providing specialist-orientated, multi-disciplinary services across the continuum of care in such a way that the Group will be regarded as the most respected and trusted provider of healthcare services by patients, medical practitioners, funders and regulators of healthcare in each of its markets.
At 30 September 2021, Mediclinic comprised 74 hospitals, five subacute hospitals, two mental health facilities, 19 day case clinics and 20 outpatient clinics. Hirslanden operated 17 hospitals and four day case clinics in Switzerland with around 1 900 inpatient beds; Mediclinic Southern Africa operations included 50 hospitals (three of which in Namibia), five subacute hospitals, two mental health facilities and 13 day case clinics (four of which operated by Intercare) across South Africa, and around 8 600 inpatient beds; and Mediclinic Middle East operated seven hospitals, two day case clinics and 20 outpatient clinics with around 1 000 inpatient beds in the UAE. In addition, under management contracts Mediclinic Middle East operates one hospital in Abu Dhabi and will open a 200-bed hospital in the Kingdom of Saudi Arabia in mid-2022.
The Company's primary listing is on the London Stock Exchange ("LSE") in the United Kingdom, with secondary listings on the JSE in South Africa and the Namibian Stock Exchange in Namibia.
Mediclinic also holds a 29.9% interest in Spire Healthcare Group plc, a leading private healthcare group based in the United Kingdom and listed on the LSE.
For further information, please contact:
Investor Relations, Mediclinic International plc
James Arnold, Head of Investor Relations
+44 (0)20 3786 8181
Ben Atwell/Ciara Martin - UK
+44 (0)20 3727 1000
Sherryn Schooling - South Africa
+27 (0)21 487 9000
Registered address: 6th Floor, 65 Gresham Street, London, EC2V 7NQ, United Kingdom
Corporate broker: Morgan Stanley & Co International plc and UBS Investment Bank
JSE sponsor (South Africa): Rand Merchant Bank (A division of FirstRand Bank Limited)
NSX sponsor (Namibia): Simonis Storm Securities (Pty) Ltd