LHC: LIFE HEALTHCARE GROUP HOLDINGS LTD - Unaudited Group results

2015-05-13 07:05:00
LHC: LIFE HEALTHCARE GROUP HOLDINGS LTD - Unaudited Group results
for the period ended 31 March 2015, cash dividend declaration and trading statement
Unaudited Group results
for the period ended 31 March 2015, cash dividend declaration and trading statement
LIFE HEALTHCARE GROUP HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2003/002733/06
Income tax number: 9387/307/15/1
ISIN: ZAE000145892
Share code: LHC
UNAUDITED GROUP RESULTS
FOR THE PERIOD ENDED 31 MARCH 2015, CASH DIVIDEND DECLARATION AND TRADING STATEMENT
Paid patient days (PPDs)
+3.5%
Group revenue increased to R7 089 million
+14.1%
Group normalised EBITDA increased to R1 926 million
+10.8%
Normalised earnings per share from continued operations (excluding funding costs for international acquisitions) increased to 88.9 cents
+10.4%
Headline earnings per share decreased to 80.3 cents
-2.9%
Interim dividend: 68 cents per share
+7.9%
Condensed consolidated statement of comprehensive income
for the period ended 31 March 2015
R'm                                                               6 months            %      6 months     12 months
                                                                  31 March       Change      31 March  30 September
                                                                      2015                       2014          2014
Revenue                                                              7 089         14.1         6 211        13 046
Other income                                                            47                         50           115
Operating expenses                                                  (5 479)                    (4 760)      (10 011)
Profit on disposal of businesses                                         -                        985           959
Loss on disposal of property, plant and equipment                       (1)                         -             -
Transaction costs                                                      (11)                         -           (16)
Gain on bargain purchase                                                 -                          -             1
Impairment of property, plant and equipment                              -                          -            (1)
Operating profit                                                     1 645        (33.8)        2 486         4 093
Fair value gain/(loss) on derivative financial instruments              20                         (8)           49
Finance income                                                          11                         12            22
Finance cost                                                          (228)                      (106)         (230)
Share of associates' and joint ventures' net profit after tax            2                         37            39
Profit before tax                                                    1 450                      2 421         3 973
Tax expense                                                           (447)                      (449)         (875)
Profit after tax                                                     1 003        (49.1)        1 972         3 098
Other comprehensive income, net of tax
Items that may be reclassified subsequently to profit or loss
Currency translation differences                                        42                          1            (1)
Items that may not be reclassified  to profit or loss
Retirement benefit asset                                                11                         36            19
Post-retirement medical aid                                              -                          -             2
Total comprehensive income for the period                            1 056        (47.4)        2 009         3 118
Profit after tax attributable to:
Ordinary equity holders of the parent                                  832        (54.1)        1 813         2 774
Non-controlling interest                                               171                        159           324
                                                                     1 003        (49.1)        1 972         3 098
Total comprehensive income attributable to:
Ordinary equity holders of the parent                                  884                      1 850         2 796
Non-controlling interest                                               172                        159           322
                                                                     1 056        (47.4)        2 009         3 118
Weighted average shares in issue (million)                           1 037                      1 037         1 037
Earnings per share (cents)                                            80.2        (54.1)        174.8         267.5
Headline earnings per share (cents)                                   80.3         (2.9)         82.7         177.8
Diluted earnings per share (cents)                                    80.0        (54.2)        174.5         266.7
Diluted headline earnings per share (cents)                           80.1         (3.0)         82.6         177.3
Headline earnings
Profit attributable to ordinary equity holders                         832                      1 813         2 774
Headline earnings adjustable items (net of tax)
Impairment of property, plant and equipment                              -                          -             1
Gain on bargain purchase                                                 -                          -            (1)
Profit on disposal of businesses                                         -                       (985)         (959)
Loss on disposal of property, plant and equipment                        1                          -             -
Tax on above                                                             -                         30            29
Headline earnings                                                      833                        858         1 844
Condensed consolidated statement of financial position
as at 31 March 2015
R'm                                                               31 March     31 March  30 September
                                                                      2015         2014          2014
ASSETS
Non-current assets                                                  12 218        8 212         9 700
Property, plant and equipment                                        6 389        4 690         5 901
Intangible assets                                                    2 890        2 031         2 318
Other non-current assets                                             2 939        1 491         1 481
Current assets                                                       2 344        1 916         2 113
Other current assets                                                 1 979        1 618         1 691
Cash and cash equivalents                                              365          298           422
TOTAL ASSETS                                                        14 562       10 128        11 813
EQUITY AND LIABILITIES
Capital and reserves
Capital and reserves                                                 4 790        4 579         4 792
Non-controlling interests                                            1 104        1 071         1 108
TOTAL EQUITY                                                         5 894        5 650         5 900
LIABILITIES
Non-current liabilities                                              4 387        2 547         2 909
Interest-bearing borrowings                                          3 810        2 036         2 344
Other non-current liabilities                                          577          511           565
Current liabilities                                                  4 281        1 931         3 004
Other current liabilities                                            1 961        1 501         1 842
Interest-bearing borrowings                                          1 754          163         1 007
Bank overdraft                                                         566          267           155
TOTAL LIABILITIES                                                    8 668        4 478         5 913
TOTAL EQUITY AND LIABILITIES                                        14 562       10 128        11 813
Condensed consolidated statement of changes in equity
for the period ended 31 March 2015
R'm                                                                  Total         Non-         Total
                                                               capital and  controlling        equity
                                                                  reserves     interest
Balance at 1 October 2014                                            4 792        1 108         5 900
Total comprehensive income for the period                              884          172         1 056
Profit for the year                                                    832          171         1 003
Other comprehensive income                                              52            1            53
Transactions with non-controlling interests                             (1)           1             -
Increase in ownership interest in subsidiaries                         (27)           -           (27)
Distributions to shareholders                                         (814)        (177)         (991)
Treasury shares                                                        (71)           -           (71)
Profit on disposal of treasury shares                                    1            -             1
Long Term Incentive Scheme                                              12            -            12
Life Healthcare Employee Share Trust                                    14            -            14
Balance at 31 March 2015                                             4 790        1 104         5 894
Balance at 1 October 2013 (restated)                                 4 525        1 081         5 606
Total comprehensive income for the period                            1 850          159         2 009
Profit for the year                                                  1 813          159         1 972
Other comprehensive income                                              37            -            37
Distributions to shareholders                                       (1 793)        (169)       (1 962)
Treasury shares                                                        (23)           -           (23)
Long Term Incentive Scheme                                              13            -            13
Life Healthcare Employee Share Trust                                     6            -             6
Balance at 31 March 2014                                             4 579        1 071         5 650
Balance at 1 October 2013 (restated)                                 4 525        1 081         5 606
Total comprehensive income for the year                              2 796          322         3 118
Profit for the year                                                  2 774          324         3 098
Other comprehensive income                                              22           (2)           20
Transactions with non-controlling interests                              8           (8)            -
Non-controlling interest arising on business acquisition                 -            6             6
Increase in ownership interest in subsidiaries                        (102)           -          (102)
Distributions to shareholders                                       (2 449)        (293)       (2 742)
Treasury shares                                                        (21)           -           (21)
Long Term Incentive Scheme                                              18            -            18
Life Healthcare Employee Share Trust                                    17            -            17
Balance at 30 September 2014                                         4 792        1 108         5 900
Condensed consolidated statement of cash flows
for the period ended 31 March 2015
R'm                                                               6 months            %      6 months     12 months
                                                                  31 March       Change      31 March  30 September
                                                                      2015                       2014          2014
Cash generated from operations                                       1 516          5.1         1 443         3 516
Tax paid                                                              (401)                      (459)         (980)
Net cash generated from operating activities                         1 115         13.3           984         2 536
Net cash (utilised)/generated in investing activities1              (2 284)                       997           (98)
Net cash generated/(utilised) in financing activities2                 677                     (2 014)       (2 266)
Net (decrease)/increase in cash and cash equivalents                  (492)                       (33)          172
Cash and cash equivalents - beginning of the year                      267                         64            64
Cash balance acquired through business combinations                     19                          -            23
Effect of foreign currency movement                                      5                          -             8
Cash and cash equivalents - end of the period/year                    (201)                        31           267
1 The cash utilised in investing activities for 2015 includes the acquisitions in Poland (R567 million) and the acquisition of additional shares in Max
  Healthcare Institute Limited, India (Max) for R1.3 billion.
2 The cash generated in financing activities for 2015 includes new debt raised (R2.5 billion).
Segmental report
The Hospital segment comprises all the private hospitals in southern Africa, the Healthcare Services segment comprises Life Esidimeni and Life
Occupational Healthcare and International comprises Poland while the Other segment comprises Corporate. 
There are no inter-segment revenue streams. 
R'm                                                       6 months  6 months     12 months
                                                          31 March  31 March  30 September
                                                              2015      2014          2014
Operating segments
Revenue
Southern Africa
Hospitals                                                    6 317     5 769        12 007
Healthcare Services                                            417       441           864
Other                                                            -         1             -
International
Hospitals                                                      355         -           175
Total                                                        7 089     6 211        13 046
Profit before items below
Southern Africa
Hospitals                                                    1 542     1 408         2 905
Healthcare Services                                             76        97           135
Other                                                           67        53           213
International
Hospitals                                                       18         -             3
Operating profit before items detailed below                 1 703     1 558         3 256
Amortisation of intangible assets                              (57)      (57)         (122)
Impairment of property, plant and equipment                      -         -            (1)
Loss on disposal of property, plant and equipment               (1)        -             -
Profit on disposal of businesses                                 -       985           959
Gain on bargain purchase                                         -         -             1
Retirement benefit asset                                        11         -            15
Post-retirement medical aid                                      -         -             1
Transaction costs                                              (11)        -           (16)
Operating profit                                             1 645     2 486         4 093
Operating profit before items detailed above includes
the segment's share of shared services and rental costs.
These costs are all at market related rates.
Total assets before items below
Southern Africa                                              9 640     8 657         9 160
International                                                4 201       823         1 905
Total assets before items detailed below                    13 841     9 480        11 065
Deferred tax assets                                            260       248           253
Current income tax asset                                        27         -            49
Retirement benefit asset                                       400       371           372
Post-retirement medical aid                                     18        29            18
Derivative financial instruments                                16         -            56
Total assets per the balance sheet                          14 562    10 128        11 813
Net debt
Southern Africa                                              5 423     2 168         2 620
International                                                  342         -           464
                                                             5 765     2 168         3 084
Liabilities are reviewed on a net-debt basis, which comprises all interest-bearing borrowings and overdraft balances (net of cash on hand). 
Changes in ownership interest in subsidiaries as a result of non-controlling interest transactions
The Group had marginal changes in its shareholdings in some of its subsidiary companies due to transactions with minority shareholders.
Increase in shareholding in Scanmed Multimedis S.A. (Scanmed)
The Group acquired the remaining shares in Scanmed during October 2014 for R7 million. The Group now owns 100% of Scanmed.
Increase in shareholding in Max
The Group acquired additional shares in Max during November 2014 and now owns 46.25%. This transaction resulted in Life Healthcare equalising its
shareholding with Max India (Max equalisation). The majority of the remaining 7.5% is owned by the International Finance Corporation (IFC). The additional
amount invested was R1.3 billion, which was funded through the issue of preference shares in South Africa.
Business combinations 
On 1 March 2015, the Group acquired 100% of the shares in Genesis Clinic Saxonwold Proprietary Limited (Genesis) for R30 million.
On 1 October 2014, Scanmed acquired 100% of Sport Klinika, incorporated in Poland. The Group had no significant contingent
liabilities at the acquisition date.
The following presents the impact on the consolidated information of the Group for the period:         R'm
Revenue                                                                                                 90
Net profit                                                                                              12
Details of the net assets acquired and goodwill are as follows:
Total purchase consideration                                                                          (211)
Cash portion                                                                                          (211)
Fair value of net assets acquired                                                                       77
Goodwill arising on acquisition                                                                       (134)
The fair value of the assets and liabilities arising from the acquisition were as follows:        Acquiree
                                                                                                fair value
                                                                                                      2015
                                                                                                       R'm
Inventories                                                                                              2
Trade and other receivables                                                                              6
Trade and other payables                                                                                (7)
Cash balances                                                                                           18
Current tax liabilities                                                                                 (1)
Borrowings                                                                                             (46)
Property, plant and equipment                                                                           82
Intangible assets                                                                                       25
Deferred tax                                                                                            (2)
                                                                                                        77
On 1 November 2014, Scanmed acquired 100% of Kliniki Kardiologii Allenort, incorporated in Poland. The Group had no significant contingent liabilities at
the acquisition date. 
The following presents the impact on the consolidated information of the Group for the period as 
if the business combination took place on 1 October 2014:                                              R'm
Revenue                                                                                                244
Net profit                                                                                              20
Details of the net assets acquired and goodwill are as follows:
Total purchase consideration                                                                          (464)
Cash portion                                                                                          (349)
Contingent consideration                                                                              (115)
Fair value of net assets acquired                                                                      109
Goodwill arising on acquisition                                                                       (355)
The contingent consideration is dependent on the business gaining additional contracts in the next 15 months. 
The contingent consideration is calculated by applying the same EBITDA multiple used on the acquisition date.
The fair value of the assets and liabilities arising from the acquisition were as follows:        Acquiree
                                                                                                fair value
                                                                                                      2015
                                                                                                       R'm
Inventories                                                                                              2
Trade and other receivables                                                                             65
Trade and other payables                                                                               (29)
Cash balances                                                                                            1
Borrowings                                                                                             (87)
Property, plant and equipment                                                                          112
Intangible assets                                                                                       53
Deferred tax                                                                                            (8)
                                                                                                       109
Basis of presentation and accounting policies 
The condensed consolidated interim financial statements contained in the interim report are prepared in accordance with International Financial Reporting
Standard, (IAS) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
Pronouncements as issued by the Financial Reporting Standards Council and the requirements of the Companies Act of South Africa. The accounting policies
applied in the preparation of the interim financial statements are in terms of International Financial Reporting Standards and are consistent with those
applied in the previous consolidated annual financial statements. 
These interim financial results have been prepared under the supervision of PP van der Westhuizen (CA(SA)), the Chief Financial Officer of the Group. 
Unaudited results 
The results for the period ended 31 March 2015 have not been reviewed or audited by the Group's auditors. 
The directors take full responsibility for the preparation of the interim report. 
Commentary
Overview
The Group performed well during the first six months of 2015. Southern Africa experienced good activity growth, has a solid pipeline of beds with which to
grow the business whilst maintaining EBITDA margins. The Group continued to deliver on its international expansion plans, investing nearly R2 billion in
increasing its shareholding in Max and through two acquisitions in Poland. Revenue and EBITDA continued to show good growth in both the Indian and Polish
operations. Normalised earnings per share from continued operations, excluding funding costs for international acquisitions increased by 10.4%. Headline
earnings per share (HEPS) decreased by 2.9% primarily due to the impact of the increased funding costs.
In southern Africa, activities as measured by hospital paid patient days (PPDs) increased by 3.5% (2014: 2.7%) and an additional 90 beds (2014: 142) have
been added to the business. These additional beds comprise the acquisition of the 14 bed Genesis Clinic and brownfield expansion of 76 beds. Southern
Africa's average occupancy for the period was 70.7% (2014: 70.6%). Occupancies, in southern Africa, continue to remain high in the intensive and high care
units at 74.8% (2014: 75.3%) and in the mental health and acute rehabilitation units at 74.8% (2014: 74.9%). Driving efficiency improvement remains a key
strategy for the Group and margins remained stable during the period despite pressures from the depreciating rand, salaries and overheads. Life Healthcare
continued to improve on its quality metrics as evidenced by an improvement in both clinical outcomes and hospital associated infection rates. The
recruitment of specialised nurses from India continues. This programme complements the local nurse training programme which currently has over 1 300
nurses in training.
The Group concluded the Max equalisation during November 2014 for R1.3 billion and now owns 46.25%. Max grew revenue by 21.8% for the period to March 2015
compared to the prior period and increased the number of operational beds to 1 754 (2014: 1 571). EBITDA margins for the period continued to improve to
10.3%, from 8.3% for the comparative period, due to the higher occupancies and efficiency initiatives. The Group's total investment in Max is R2.2
billion.
In Poland the Group continued to execute on its strategy of establishing a comprehensive countrywide network of facilities. The Group acquired 100% of
Sport Klinika, a 46 bed orthopaedic centre, and Kliniki Kardiologii Allenort which has six inpatient cardiology centres. These acquisitions have
contributed to improved EBITDA margins. The Scanmed Group now consists of 294 beds, six inpatient cardiology centres and 29 medical centres. The Group's
total investment (including advances capitalised) in the business is now R1.3 billion.
Competition Commission Market Inquiry
Life Healthcare has made a detailed submission on the subject matter of the Inquiry and submitted a further response to the public submissions as
requested by the Panel. This is a large and complex inquiry and the Commission has requested further information. The scheduled public hearings have been
delayed until all the data has been reviewed and the Competition Commission is due to publish a new timetable of events.
Financial performance
Group revenue, increased by 14.1% to R7 089 million (2014: R6 211 million) consisting of a R355 million revenue contribution from Scanmed and an 8.4%
increase in southern African revenue to R6 734 million (2014: R6 211 million). The southern Africa Hospital division revenue increased by 9.5% to R6 317
million (2014: R5 769 million) driven by a 3.5% increase in PPDs and a higher revenue per PPD of 6.2%, made up of a pricing increase of 6.3%
and a negative case mix change of 0.1%. Healthcare Services revenue decreased by 5.4% to R417 million (2014: R441 million) due to the return of the
Matikwana hospital to the public sector as at 31 March 2014.
Revenue on a continuing basis (including revenue from Scanmed in Poland) increased by 15.2% to R7 089 million (2014: R6 153 million).
Normalised EBITDA1 increased by 10.8% to R1 926 million (2014: R1 738 million). Normalised EBITDA on a continuing basis increased by 11.5% to R1 926
million (2014: R1 728 million). The EBITDA contribution from Scanmed was R42 million. The Group continues to focus on driving efficiencies across the
business. The alternative reimbursement model (ARM) together with higher occupancies and cost of sales management allowed the Group to maintain EBITDA
margins despite cost pressures from the depreciating rand, salary and overhead pressures.
1 Life Healthcare defines normalised EBITDA as operating profit plus depreciation, amortisation of intangible assets, impairment of property, plant and
equipment as well as excluding profit/loss on disposal of businesses, movement on foreign exchange hedge contracts, transaction costs and
surpluses/deficits on retirement benefits.
R'm                                                6 months       %  6 months     12 months
                                                   31 March  Change  31 March  30 September
                                                       2015              2014          2014
Normalised EBITDA
Operating profit                                      1 645   (33.8)    2 486         4 093
Profit on disposal of businesses                          -              (985)         (959)
Gain on bargain purchase                                  -                 -            (1)
Loss on disposal of property, plant and equipment         1                 -             -
Impairment of property, plant and equipment               -                 -             1
Depreciation on property, plant and equipment           223               180           355
Transaction costs                                        11                 -            16
Amortisation of intangible assets                        57                57           122
Retirement benefit asset                                (11)                -           (15)
Post-retirement medical aid                               -                 -            (1)
Normalised EBITDA                                     1 926    10.8     1 738         3 611
Discontinued operations2                                  -               (10)          (14)
Normalised EBITDA - continued operations              1 926    11.5     1 728         3 597
Southern Africa                                       1 884     9.0     1 728         3 581
Poland                                                   42                 -            16
2 Discontinued operations are businesses that, for comparative purposes, are disclosed separately due to being included for part of a period. The
businesses were disposed/closed during the prior period and include Matikwana Hospital where the contract with the government came to an end in March
2014.
In the last 12 months the Group increased its gearing to fund the investments in Poland and Max as well as to raise debt to fund its capital expenditure
programme. The increased funding resulted in an increased interest cost of R228 million (2014: R106 million).
Capital expenditure
During the current financial period, Life Healthcare invested R2 310 million (2014: R343 million) comprising mainly of capital projects of R369 million,
R1.3 billion for the equalisation of Max and R567 million in expanding the Scanmed business. The Group's total cash flow commitment (excluding investment
opportunities) for the 2015 financial year is R1.2 billion. This investment in the Group's facilities ensures that the demand for services is met and the
Group remains abreast of modern technology and standards.
Financial position
The Group is in a strong financial position. Net debt to normalised EBITDA as at 31 March 2015 was 1.52 times (2014: 0.62 times). The increase in debt is
primarily due to the R1.3 billion investment into Max and the R567 million spent on acquisitions in Poland. The bank covenant for net debt to EBITDA is
2.75 times. The current gearing level provides the Group with the financial flexibility to continue to invest locally and internationally.
HEPS and normalised earnings per share
HEPS decreased by 2.9% to 80.3 cps (2014: 82.7 cps) primarily due to the impact of the increased funding cost. Earnings per share on a normalised basis,
which excludes non-trading related items listed below and the effect of disposed/closed businesses, increased by 2.7% to 80.2 cps (2014: 78.1 cps).
Normalised EPS from continued operations (excluding international funding costs) increased by 10.4% to 88.9 cps (2014: 80.5 cps).
R'm                                                                                 31 March       %  31 March  30 September
                                                                                        2015  Change      2014          2014
Normalised earnings
Profit attributable to ordinary equity holders                                           832             1 813         2 774
Decrease in profits due to the impact of businesses disposed/closed3 (net of tax):         -               (48)          (54)
Adjusted profit attributable to ordinary equity holders from continued operations        832             1 765         2 720
Profit on disposal of a business                                                           -              (955)         (930)
Gain on bargain purchase                                                                   -                 -            (1)
Impairment of property, plant and equipment                                                -                 -             1
Retirement benefit asset                                                                  (9)                -           (11)
Post-retirement medical aid                                                                -                 -            (7)
Transaction cost                                                                          11                 -            16
Fair value gain on foreign exchange  hedge contract                                       (3)                -           (40)
Loss on disposal of property, plant  and equipment                                         1                 -             -
Normalised earnings from continued operations                                            832               810         1 748
Normalised EPS (cents) from continued operations                                        80.2     2.7      78.1         168.6
Southern Africa Operations (cents)                                                      89.2     9.9      81.2         176.7
International Operations (cents)                                                        (0.3)             (0.7)         (2.0)
Funding costs (international acquisitions) (cents)                                      (8.7)             (2.4)         (6.1)
Normalised EPS (cents) from continued operations (excluding funding costs)              88.9    10.4      80.5         174.7
3 Includes Matikwana Hospital and Joint Medical Holdings Limited (JMH). 
Cash dividend declaration
The directors approved an interim gross cash dividend of 68 cents per ordinary share (2014: 63 cents per ordinary share) for the six months ending 
31 March 2015. The dividend has been declared from income reserves. The total interim dividend amounting to R708 702 630 will be subject to dividend
withholding tax at a rate of 15%, which will result in a net dividend of 57.80000 cents per share to those shareholders who are not exempt in terms of
section 64F of the Income Tax Act.
The Company's tax reference number is 9387/307/15/1. The issued share capital at the declaration date is 1 042 209 750 ordinary shares. In compliance
with the requirements of the JSE Limited, the following dates are applicable:
Last day to trade cum dividend  Friday, 29 May 2015
Trading ex dividend commences   Monday, 1 June 2015
Record date                     Friday, 5 June 2015
Payment date                    Monday, 8 June 2015
Share certificates may not be dematerialised or rematerialised between Monday, 1 June 2015 and Friday, 5 June 2015, both days inclusive.
Changes to board of directors and other committees
FA du Plessis retired from the board, audit and the social, ethics and transformation committees with effect from 28 January 2015 at the annual general
meeting. GC Solomon and JK Netshitenzhe were respectively appointed to the audit committee and the social, ethics and transformation committee with effect
from 29 January 2015.
Outlook and trading statement
The Group will continue to focus on its growth objectives in southern Africa, India and Poland. Over 170 new beds will be added in southern Africa in the
next six months through 80 brownfield expansion beds and the addition of the 94 bed Life Hilton Private Hospital.
The Group's proposed acquisition of the 50 bed Lowveld Hospital has been terminated as per the seller's wishes, due to the slow approval process of the
Competition authorities.
Max will continue to grow revenue and improve EBITDA margins and is well positioned to take advantage of the rapidly developing private healthcare sector
in India, leveraging off the existing base and growing by brownfield expansions, greenfield projects and through acquisitions.
In Poland the Group will continue to execute on its strategy of establishing a comprehensive network of facilities through the integration of the existing
businesses, positioning the business to maximise growth in new national health contracts in 2016 and through exploring new acquisition opportunities.
In southern Africa, the pressure on costs will remain in light of the weakening of the rand exchange rate, wage expectations and other overhead costs but
the Group will continue to focus on efficiency programmes to lessen the impact.
The quality management programme of the Group is a comprehensive, consistently applied and measured programme which benchmarks clinical interventions
against international best practice with the aim of enhancing patient outcomes. In addition Life Healthcare recognises the shortage of healthcare skills
and will continue to invest heavily in the training of doctors, nurses and pharmacists. The Competition Commission Market Inquiry into the healthcare
sector will continue during the remainder of 2015.
Life Healthcare's results for the full financial year ended 30 September 2015 are expected to show a deterioration in earnings per share of between 66.9
and 120.4 cents per share or between 25% and 45% from that reported for the financial year ended 30 September 2014. This decrease is largely due to the
profit arising on Life Healthcare's disinvestment of its 49.3% shareholding in JMH in February 2014, the proceeds from which were used to distribute a
dividend in March 2014.
A detailed trading statement will be released early October 2015.
The forecast financial information on which this trading statement is based has not been reviewed and reported on by the Group's external auditors.
Thanks
The contribution of the doctors, nurses and other employees of Life Healthcare has greatly enhanced the quality of our performance. We thank them for
their contributions.
Approved by the board of directors on 12 May 2015 and signed on its behalf:
Mustaq Brey        Andre Meyer
Chairman           Chief Executive Officer
Executive directors
A Meyer (Chief Executive Officer), PP van der Westhuizen (Chief Financial Officer)
Non-executive directors
MA Brey (Chairman), PJ Golesworthy, ME Jacobs, LM Mojela, JK Netshitenzhe,  MP Ngatane, GC Solomon, RT Vice
Company secretary
F Patel
Registered office
Oxford Manor, 21 Chaplin Road, Illovo
Private Bag X13, Northlands 2116
Note regarding forward-looking statements: The Company advises investors that any forward-looking statements or projections made by the Company, including
those made in this announcement, are subject to risk and uncertainties that may cause actual results to differ materially from those projected.
www.lifehealthcare.co.za
Sponsors
Rand Merchant Bank, a division of FirstRand Bank Limited.
Date
13 May 2015
Date: 13/05/2015 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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