Healthy results for ‘Life’

Life Healthcare posted strong results for the year to September, with group revenue climbing 12.9% to R23.5 billion, while cash generated from operations increased 18% to R5.5 billion.

Headline earnings per share shot up by 40.6% to 108.8 cents while earnings per share on a normalised basis increased by 17.4% to 110.2 cents.

Group chief executive Shrey Viranna says within South Africa there was an improvement in positive paid patient days, with growth of 1.1%, despite a tougher environment and a reduction in admissions for pneumonia-related conditions in the last quarter of the year.

An additional 131 beds were added across South African facilities.

The newly acquired Life Healthcare Employee Solutions, which offers occupational health and wellness programmes, lost a major contract in the first half of 2018 but management is confident the business is well-positioned for new growth with improved margins.

“We continue to invest ahead of the curve with areas of growth both in South Africa and internationally, with operations in Italy, Ireland, Poland and the UK,” Viranna said.

Alliance Medical remains at the heart of the group’s investment story, with revenue for this division alone increasing by 30.8% to R5 billion due primarily to the company’s overseas holdings and the rand weakening against the Pound and Euro.

Shareholders saw an increase of 11.1% in the final dividend, moving to 50 cents per share.