(Alliance News) -Â Mediclinic International PLC said on Friday trading for its recently ended financial year was in line with expectations, though it has suspended its dividend in order to support liquidity in light of the Covid-19 pandemic.
On a reported basis, the private healthcare firm said revenue for the financial year that ended in March is expected to grow 5.5%, while pre-IFRS16 earnings before interest, tax, depreciation and amortisation will fall 2.5%. At constant currency, revenue was up 4.0% and Ebitda down 3.5%.
Hirslanden, its Swiss private hospital group, was performing ahead of expectations prior to the impact of Covid-19 in mid-March. It delivered "modest" revenue growth of 1.5% for the year, in line with expectations, with inpatients admissions growth of 0.5%.
Mediclinic said that most non-essential elective procedures and outpatient activities have been postponed due to Covid-19.
Hirslanden's Ebitda margin was, until mid-March, ahead of expectations. However, including a "swift" decline in admissions as a result of Covid-19 restrictions and preparedness planning, the pre-IFRS16 margin was around 14.5% to 15.0%, narrowed from 16.0% a year before.
At Mediclinic Southern Africa, revenue growth was in line with expectations at around 6.5%, driven by a large increase in inpatient bed days sold of around 2.5%.
At Mediclinic Middle East, revenue growth was driven by the continued ramp-up of the Mediclinic Parkview Hospital in Dubai and a gradual improvement in the Abu Dhabi business. The unit grew revenue by 5.5%, with inpatient and outpatient volumes up 5.5% and 3.0% respectively.
As at the end of March, Mediclinic had "material" headroom to covenants in its existing debt facilities as well as a strong liquidity position. Cash and available facilities at the year-end stood around GBP515 million.
To further support the group's liquidity position, all non-urgent and non-committed capital programmes have been postponed.
"As part of the group's proactive measures, covenant test waivers have been agreed in respect of its material borrowings across all three divisions up to and including March 2021. This allows the group to focus on the vital role it plays during the pandemic and to prepare for the anticipated increase in demand from postponed treatments once the peak of the pandemic subsides," said Mediclinic.
It also has decided to suspend its dividend.
By Lucy Heming;Â lucyheming@alliancenews.com
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