Mediclinic Profit Climbs on Swiss, Middle East Hospital Growth

Mediclinic International Ltd., South Africa’s largest private-hospital owner which has agreed to combine with Al Noor Hospitals Group Plc of Abu Dhabi, said first-half profit increased 12 percent as the Switzerland and Middle East units grew and the company benefited from converting earnings in those regions into rand.

Net income advanced to 1.87 billion rand ($132 million) in the six months through September, compared with 1.67 billion rand a year earlier, the Stellenbosch-based company said in a statement on Thursday. Sales gained 16 percent to 19.6 billion rand, while the first-half dividend was raised 16 percent to 36 cents a share.

“We are continuing to see a strong demand for quality private healthcare services in our three operating platforms” in Southern Africa, the Middle East and Switzerland,” Chief Executive Officer Danie Meintjes said in the statement. “The trend is also prevalent in the U.K.,” where Mediclinic bought almost 30 percent of Spire Healthcare Group Plc for
431.7 million pounds ($657 million) this year.

Last month Mediclinic agreed to combine with Al Noor to create the biggest private health-care provider in the United Arab Emirates. The 1.5 billion-pound transaction would involve a reverse takeover that gives Mediclinic shareholders a majority stake in the combined operations and a listing on the London Stock Exchange, the companies said at the time. NMC Health Plc, also based in Abu Dhabi, is also pursuing Al Noor.

Currency movements of Mediclinic’s Swiss, Middle East and U.K. operations contributed 66 percent of adjusted normalized headline earnings, which rose 19 percent to 2.14 rand.

Mediclinic raised 10 billion rand via a rights issue last month, with the bulk of that money funding its purchase on Aug. 24 of the Spire stake. Mediclinic shares have climbed 22 percent this year, valuing the company at 117 billion rand.

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