Life Healthcare’s Southern African business experienced good underlying activity growth at the halfway stage of the financial year, with increases in overall paid patient days and occupancies.
Releasing a trading update for the six months ended March on Thursday, the private hospital operator said revenue per paid patient day (PPD) had increased by about 6.1% due to a changing case mix and a tariff increase of 5.1%. This has resulted in revenue growth of between 8% and 9%.
Normalised earnings per share from continuing operations
are expected to be as much as 12.3% higher at 45c to 50.4c.
NEPS excludes non-trading related items and Life Healthcare believes the measure provides the actual performance of the southern African underlying business and therefore excludes discontinued operations as well as the adjustments to the life molecular imaging (LMI) associated liabilities included as part of continuing operations.
Life Healthcare expects to report a headline loss per share from continuing operations of 148c to 154.2c, which includes one-off items of 203c related to LMI transaction costs of R75m recognised in the first half and which only affect EPS and HEPS from continuing and discontinued operations.
In January the group signed a R13.9bn deal to sell LMI to Lantheus Radiopharmaceuticals UK, with the proceeds set to be returned to shareholders.
Life Healthcare said the disposal of LMI was expected to be completed in the second half of the 2025 financial year. The profit on disposal of the sale would only be recognised on completion of the transaction, expected in the second half; however, there were adjustments to the liabilities relating to LMI, it said.
The group said for the first half, overall PPDs increased by 2% with overall occupancies improving to 68.6% from 66.6%.
Acute hospitals PPDs increased by about 2% with the acute hospitals’ occupancy improving to 68.3% from 66.2%. Complementary services PPDs grew by 2% with occupancies improving to 71.6% from 70.4%.
The Southern African business has benefited in the current period from the timing of the Easter holidays falling in April 2025 vs in March in 2024, it added.
Life Healthcare said the Southern African business was in line to meet its 2025 outlook guidance of 79 additional beds and the commencement of the construction and development of a new 140 bed hospital and improving occupancies to 70%.
Capex spend for the second half is expected to be about R1.2bn. It will release its results on May 22.
By market close on Thursday Life Healthcare’s share price was 0.22% lower at R13.80. It is however still down more than 15% so far this year.
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