Mediclinic Forecasts Continued Growth Following Al Noor Deal

  • Reports 13 percent increase in full-year underlying profit
  • Private healthcare company operates 73 hospitals, 45 clinics

Mediclinic International Plc, the combination of South Africa’s biggest private healthcare provider and Al Noor Hospitals Group Plc of Abu Dhabi, said it expects to continue growing in both markets despite tough competition and regulatory initiatives.

“We expect an increase in demand for cost-effective quality hospital services and increasingly complex clinical services to continue leading to further volume growth,” Chief Executive Officer Danie Meintjes said in the company’s full-year earnings statement on Wednesday.

South Africa’s Mediclinic completed a reverse takeover of Al Noor in February, gaining a listing on the London Stock Exchange and a place on the FTSE 100 Index. The enlarged company operates 73 hospitals and 45 clinics in South Africa, Namibia, Switzerland and the United Arab Emirates, where it is the biggest private healthcare provider.

“Notwithstanding the on-going changes in the global and regional economies and the regulatory changes that continue to impact healthcare and its affordability, we are continuing to see a strong demand for quality private healthcare services across our three operating platforms,” the company said.

Mediclinic shares rose 0.9 percent to 865 pence at 8:48 a.m. in London, giving the company a market capitalization of 6.4 billion pounds ($9.4 billion).

Net income declined 27 percent to 177 million pounds in the 12 months through March, the Stellenbosch, South Africa-based company said, while so-called underlying earnings, which exclude on costs related to the combination, rose 13 percent to 219 million pounds. Sales increased 7 percent to 2.1 billion pounds.

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