Group Financial Results
Adapting to the changing healthcare landscape
With trends of an ageing population and a growing disease burden coupled with new medical technology, digital health and greater consumerism, healthcare providers are facing unprecedented developments. This also presents Mediclinic with the opportunity to learn, adapt and grow, as it has done in the past. One of the challenges in the industry will always be the affordability of healthcare and Mediclinic maintains a strong focus on cost management and efficiencies across the Group. The Group is actively adapting and optimising the way it delivers healthcare to help address the regulatory trend of outmigration.
Benefits of international scale
Today’s healthcare industry remains fragmented, and with only a few truly global healthcare service providers. Mediclinic is focused on improving the integration of its service offering across all three divisions to enhance the efficiency of its operations, but also to enable the Group to leverage its core competencies and unique approach to knowledge sharing. As one of the largest Europe, Middle East and Africa (“EMEA”) healthcare groups, with each division recognised as a leader in its own market, Mediclinic is well positioned to provide diversified services across the continuum of care.
Patients First strategic objective
During the year, the Group’s commitment to delivering high-quality, cost-effective healthcare services on a sustainable basis supported the achievement of its core strategic objective of putting Patients First. Mediclinic deeply appreciates the 750 000 inpatients who chose it as their preferred healthcare service provider and the growing number of patients attending its expanding day case and outpatient clinics. Progress continued this year in the key areas of clinical performance, patient experience and employee engagement.
Focused on cash flow generation and responsible leverage
While recent profitability has challenged the achievement of appropriate returns, the invested capital of the Group remains underpinned by a philosophy of property ownership. Strong cash flow generation and responsible leverage are key to delivering on the long-term success of the Group. Therefore, Mediclinic focuses on profitable growth and disciplined capital allocation to generate returns in excess of the bottom-up hurdle rates established for each division. This year, the Group successfully refinanced debt facilities in Southern Africa and the UAE. In Switzerland, where Hirslanden has the highest value of fixed assets and the lowest cost of borrowing, the Group proactively took action to re-calibrate the covenants to reflect the impact of regulatory changes on the profitability of the business.
KEY PERFORMANCE INDICATORS
|1||An income statement reclassification has increased Mediclinic Southern Africa FY18 revenue and cost of sales by £6m. Refer to note 2.1 of the Group annual financial statements.|
|2||The Group uses adjusted income statement reporting as non-IFRS measures in evaluating performance and as a method to provide shareholders with clear and consistent reporting. See the reconciliations between the statutory and the non-IFRS measures in the Financial Review.|
|3||Reported loss refers to loss attributable to equity holders.|
|4||The total dividend per share for the year ended 31 March 2019 in pound sterling comprises the final dividend of 4.70 pence per share (2018: 4.70 pence) and the interim dividend of 3.20 pence per share, paid in December 2018 (2018: 3.20 pence).|
Group results are subject to movements in foreign currency exchange rates. Refer to Financial Review for exchange rates used to convert the divisions’ results to pound sterling.