Private clinic and hospital group Mediclinic International has returned to profit in its six months to end-September, as it recovers from write-downs in its UK and Swiss operations.
Revenue rose 9% to £1.5bn (R28.5bn) in constant-currency terms, with the group’s operating profit surging 264% to £142m, having suffered an impairment on its Hirslanden properties in the prior comparative period.
Hirslanden, which is Switzerland’s largest private hospital group, was affected by new regulations related to outpatient tariff reductions. This resulted in impairment charges on Hirslanden properties of £43m and trade names of £55m.
In the prior period, the equity accounted investment in UK-based Spire Healthcare Group was impaired by £164m,
In its interim results on Thursday, the group said Southern African revenue rose 7% to R8.57bn, with the company opening a day-case clinic in Stellenbosch during the period. Hirslanden saw revenue growth of 5%, and its Middle East operations rose 8%.
“At all three divisions, we continue to supplement our core acute-care business through expansion across the health-care continuum,” said CEO Ronnie van der Merwe. “The growth initiatives we are investing in as a group, or collaborating on with partners, include day-case clinics, primary-care facilities, subacute hospitals, radiology, precision medicine, IVF and digital health-care solutions,” he said.
Mediclinic’s share price was down 1.54% to R71.38 in morning trade on Thursday, having risen 18.71% so far in 2019.