Advanced Health’s profit narrows

The profit after tax of Advanced Health almost halved in its latest interim results, but the day clinic operator is now looking to expand in SA after selling off its Australian business.

The company, valued at R249m on the JSE, saw profit for the period decline 47.7% to R436,000, while its headline loss per share narrowed by 86% to 6c.

In the reporting period, Advanced Health sold off its Presmed Australia (PMA) business, which has been the star performer, for A$45.2m (R542.1m). Founded in 1997, Advanced Health has been the majority shareholder of PMA, which owns 10 facilities, including day hospitals and consultation clinics, since 2014.

The proceeds of the sale, which was completed last week, will go towards developing and expanding its SA operations.

THE COMPANY IS FOCUSING ON GROWING PATIENT NUMBERS AND IMPROVING ITS EARNINGS

“The disposal proceeds will initially be applied to restructure the Advanced Health group balance sheet by settling outstanding credit facilities and to finance the working capital requirements of the remaining SA operations,” the company said on Monday.

“The remaining business of Advanced Health post the disposal of PMA is expected to achieve its aim of turning profitable and growing its footprint of independent, quality, and costeffective day-hospitals, to the benefit of patients, doctors and medical schemes,” it added.

In SA, the company is focusing on growing patient numbers and improving its earnings to turn it into a profitable business.

Day hospitals are healthcare facilities providing shortprocedure surgical services and diagnostic procedures that need to be performed on a same-day basis.

“In SA, the demand for day hospitals continues to grow. Medical schemes have embarked on channelling sameday procedures to day hospitals as members who choose to undergo day surgical procedures in traditional hospitals are paying additional co-payments,” the company said.

“There has been a downgrade of members into lower medical aid options due to the unaffordability of private healthcare and Advanced Health is aligned to accept the majority of the low-cost medical options,” it added.

No dividend was declared.