GROUP STATEMENT OF COMPREHENSIVE INCOME

 

	CAGR  since 2014  %		2020  R’m		2019  R’m		2018  R’m		2017  R’m		2016  R’m		2015  R’m		2014  R’m
Revenue	11.7		25 386		25 672		23 488		20 797		16 404		14 647		13 046
Normalised EBITDA1	3.1		4 346		5 727		5 535		5 001		4 314		4 048		3 611
Operating profit	(6.0)		2 180		3 944		3 848		3 620		3 660		3 496		3 150
Net finance cost	25.1		(825)		(998)		(962)		(1 229)		(502)		(404)		(215)
Share of associate’ net profit after tax	(15.7)		14		18		(105)		(15)		8		14		39
Profit before tax	(27.4)		581		3 706		2 837		1 934		2 864		3 112		3 973
Profit for the year	(52.0)		38		2 871		1 914		1 119		1 970		2 228		3 098
Ordinary equity holders of the parent			(93)		2 569		1 575		814		1 616		1 866		2 774
Non-controlling interest			131		302		339		305		354		362		324
Normalised EBITDA1	3.1		4 346		5 727		5 535		5 001		4 314		4 048		3 611
Operating profit			2 180		3 944		3 848		3 620		3 660		3 496		3 150
Depreciation on property, plant and equipment			1 594		1 236		1 133		971		530		445		355
Amortisation on intangible assets			604		586		537		439		147		127		122
Severance payments			–		–		51		–		–		–		–
Retirement benefit asset and post-employment medical aid income			(32)		(39)		(34)		(29)		(23)		(20)		(16)

1	Normalised EBITDA – operating profit before depreciation on property, plant and equipment, amortisation of intangible assets and non-trading related costs or income.

 

GROUP STATEMENT OF FINANCIAL POSITION

 

	2020 R’m		2019 R’m		2018 R’m		2017 R’m		2016 R’m		2015 R’m		2014 R’m
ASSETS
Non-current assets
Property, plant and equipment	15 361		12 929		12 243		11 131		7 752		7 101		5 901
Intangible assets	18 238		16 969		17 084		16 281		3 196		2 964		2 318
Investment in associates and joint ventures	65		53		35		2 976		2 548		2 311		828
Employee benefit assets	379		448		401		399		433		394		376
Other non-current assets	1 285		1 189		795		672		466		382		263
Total non-current assets	35 328		31 588		30 558		31 459		14 395		13 152		9 686
Current assets
Cash and cash equivalents	2 279		1 544		1 494		1 176		604		812		422
Trade and other receivables	4 046		3 923		3 761		3 602		2 133		1 640		1 330
Inventories	873		379		360		357		318		271		240
Other current assets	179		132		128		45		47		48		121
Asset classified as held for sale	–		–		2 841		–		–		–		–
Total current assets	7 377		5 978		8 584		5 180		3 102		2 771		2 113
Total assets	42 705		37 566		39 142		36 639		17 497		15 923		11 799
EQUITY AND LIABILITIES
Capital and reserves	17 058		16 188		14 916		14 380		5 486		5 168		4 792
Non-controlling interest	1 220		1 303		1 286		1 171		1 312		1 280		1 108
Total shareholders’ equity	18 278		17 491		16 202		15 551		6 798		6 448		5 900
Non-current liabilities
Interest-bearing borrowings	12 034		9 399		12 870		7 786		5 469		5 263		2 344
Derivative financial instruments	–		–		6		749		–		–		9
Deferred tax liabilities	1 450		1 371		1 226		1 203		547		520		438
Other non-current liabilities	1 051		862		662		253		95		69		76
Total non-current liabilities	14 535		11 632		14 764		9 991		6 111		5 852		2 867
Current liabilities
Bank overdraft	2 181		867		488		450		1 030		557		155
Trade and other payables	5 327		4 799		4 409		4 174		2 217		2 125		1 866
Interest-bearing borrowings	2 180		2 596		3 086		6 301		1 312		924		1 007
Other current liabilities	204		181		193		172		29		17		4
Total current liabilities	9 892		8 443		8 176		11 097		4 588		3 623		3 032
Total equity and liabilities	42 705		37 566		39 142		36 639		17 497		15 923		11 799

 

GROUP STATEMENT OF CASH FLOWS

 

	2020  R’m		2019  R’m		2018  R’m		2017  R’m		2016  R’m		2015  R’m		2014  R’m
Cash operating profit	4 532		5 886		5 707		5 302		4 556		4 213		3 785
Changes in working capital	30		41		(204)		(639)		(520)		(356)		(253)
Cash generated from operations	4 562		5 927		5 503		4 663		4 036		3 857		3 532
Transaction costs paid	(17)		(147)		(38)		(210)		(12)		(15)		(16)
Interest received	93		60		40		162		12		12		22
Tax paid	(597)		(1 185)		(1 065)		(891)		(981)		(903)		(980)
Net cash from operating activities	4 041		4 655		4 440		3 724		3 055		2 951		2 558
Net cash utilised in investing activities – investments to expand	(2 007)		(2 329)		(3 375)		(11 957)		(2 025)		(3 198)		(1 457)
Net cash generated from investing activities – disposals	–		4 395		61		73		15		–		1 369
Net cash (utilised)/generated from investing activities – other	13		(295)		(50)		(1)		14		–		13
Net cash (utilised in)/generated from financing activities	(2 778)		(6 765)		(826)		9 298		(1 677)		222		(2 288)
Net increase/(decrease) in cash and cash equivalents	(731)		(339)		250		1 137		(618)		(25)		195
Cash and cash equivalents – beginning of the year	677		1 006		726		(426)		255		267		64
Effect of foreign exchange rate movements	152		10		30		15		(63)		13		8
Cash and cash equivalents – end of the year	98		677		1 006		726		(426)		255		267

 

BUSINESS PERFORMANCE AND METRICS

 

	2020		2019		2018		2017		2016		2015		2014
Number of registered beds2	9 151		9 136		9 055		8 983		8 768		8 647		8 418
Paid patient days3	1 914 159		2 269 756		2 251 600		2 226 337		2 265 653		2 177 833		2 115 254
Occupancy (%)3,4	58.4		69.7		69.7		70.0		72.5		71.9		71.9
Length of stay3	4.08		3.76		3.72		3.71		3.68		3.63		3.57
Number of scans	1 518 346		1 710 542		1 593 417		1 455 499		n/a		n/a		n/a
Number of machines:
MRI	150		155		150		137		n/a		n/a		n/a
CT	63		51		49		41		n/a		n/a		n/a
PET-CT	52		48		51		46		n/a		n/a		n/a
Cyclotrons	11		9		9		9		n/a		n/a		n/a
Financial ratios
Normalised EBITDA margin (%)	16.2		22.3		23.6		24.0		26.3		27.6		27.7
Tax rate excluding secondary tax on companies (%)	93.5		22.5		32.5		42.1		31.2		28.3		22.0
Effective tax rate (%)	93.5		22.5		32.5		42.1		31.2		28.3		22.0
Debtors’ days3	49		39		45		49		37		31		31
Stock cover (days)3	50.7		26.1		24.8		24.5		25.6		24.6		24.1
Quick ratio (:1)	0.96		0.84		1.13		1.08		0.95		1.03		1.04
Current ratio (:1)	0.84		0.90		1.06		1.01		0.85		0.93		0.92
Gearing net of cash (%)			38.4		46.5		45.1		53.1		46.9		33.3
Total debt (R’m)	14 214		11 995		15 956		14 087		6 781		6 187		3 351
Net debt (R’m)	14 116		11 318		14 950		13 361		7 207		5 932		3 084
Interest bearing debt (R’m)5	11 310		10 568		14 452		12 447		5 830		5 207		2 490
Debt related to finance leases raised in terms of IAS 176	2 904		1 427		1 504		1 640		951		980		861
Net debt: normalised EBITDA	2.96		1.96		2.73		2.55		1.67		1.49		0.84
Interest cover	5.8		5.6		5.7		4.2		8.2		9.7		21.0
Return on Net Assets (RONA) (%)	0.3		23.6		16.4		10.4		25.9		32.3		55.0

2	Life St Vincent’s and Life Carstenview opened during October 2016 and January 2017 respectively. Life Hilton Private Hospital opened in September 2015 and Genesis Maternity Clinic was acquired in March 2015. In March 2014 Life Sandton Surgical Centre closed.
3	Metrics for southern African operations.
4	Occupancy is measured based on the weighted number of available beds during the period and takes acquisitions and expansions during the year on a proportionate basis into account.
5	The initial investment in Max healthcare in 2012 was funded through the issue of preference shares. In 2015 preference shares to the value of R2 050 million were issued to fund the additional investment in Max Healthcare, to equalise our shareholding, and for further acquisitions within the Scanmed Group. The acquisition of Alliance Medical in 2017 was funded by way of a bridge facility of R14 601 million, during the 2017 financial year R8 770 million was repaid via the funds raised through the rights offer.
6	IAS 17 requires lessees at the commencement of the lease term, to recognise finance leases as assets and liabilities in the statement of financial position, at amounts equal to the fair value of the leased property.

 

	2020		2019		2018		2017		2016		2015		2014
Earnings per share (cents)	(6.4)		176.4		108.6		62.2		144.1		167.3		248.7
Diluted earnings per share (cents)	(6.4)		175.8		108.1		62.0		143.7		166.7		248.1
Headline earnings per share (cents)	48.7		88.7		108.8		77.4		179.1		167.3		165.3
Diluted headline earnings per share (cents)	48.5		88.4		108.3		77.2		178.5		166.7		164.9
Normalised earnings per share from continued operations (cents)	61.0		116.4		110.2		93.9		169.4		165.0		156.7
Normalised earnings per share from continued operations excluding amortisation (cents)	94.0		148.1		139.3		120.6		179.0		173.2		164.6
Weighted average number of shares in issue (’m)	1 455		1 456		1 451		1 310		1 121		1 115		1 115
Weighted average number of shares for diluted earnings per share (’m)	1 460		1 464		1 457		1 314		1 125		1 119		1 118
Total number of shares in issue (’m)	1 467		1 467		1 467		1 449		1 058		1 042		1 042
Distributions per share (cents)	–		93.0		88.0		80.0		165.0		154.0		141.0
Net asset value per share (cents)	1 162.5		1 103.2		1 016.8		992.4		518.5		495.9		459.8
Normalised earnings	888		1 695		1 598		1 230		1 899		1 840		1 747
Profit attributable to ordinary equity holders	(93)		2 569		1 575		814		1 616		1 866		2 774
Adjustments (net of tax):
Businesses disposed/closed	–		–		–		–		–		–		(54)
Loss/(gain) on remeasuring of fair value of equity interest before business combination	–		–		–		(4)		23		–		–
Gain on bargain purchase	–		–		–		–		–		–		(1)
Profit on disposal of businesses	–		(11)		–		–		–		–		(1)
Profit on disposal of investment in associate	–		(1 407)		–		–		–		–		(929)
Loss/profit on disposal of property, plant and equipment	3		–		(30)		37		(1)		–		–
Impairments	798		140		34		167		370		–		–
Gain on derecognition of lease assets and liabilities	(50)		–		(71)		–		–		–		–
Retirement funds	(23)		(28)		(24)		(21)		(16)		(15)		(11)
Retirement fund (included in employee benefit expenses)	–		–		–		–		(3)		(4)		(7)
Transaction costs	17		148		38		267		12		15		16
Fair value loss/(gain) on foreign exchange hedge	–		292		(17)		(7)		–		(1)		(40)
Contingent consideration released	103		42		18		(43)		(109)		(21)		–
Other	133		(50)		75		20		7		–		–

MARKET INDICATORS

	2020		2019		2018		2017		2016		2015		2014
Market price – high (R) per share	26.00		28.89		30.52		39.02		40.48		46.67		47.81
Market price – low (R) per share	15.44		21.12		23.00		23.05		29.53		34.32		34.66
Market price – year-end (R) per share	17.06		22.68		24.56		23.70		37.87		35.00		44.54
Market capitalisation – year-end (R’m)	24 817		33 279		36 030		34 341		40 066		36 477		46 420
Number of shares traded (’m)	1 220		1 055		1 241		1 326		1 047		870		724
Value of shares traded (R’m)	24 460		26 288		32 510		39 142		38 433		34 755		29 422
Price-earnings ratio	14.76		27.66		22.62		38.10		26.27		20.92		17.91