Mediclinic International (MDC) reported revenue growth for all three of its divisions during the six months to September 2019, driving an overall top-line improvement of 6 per cent at constant currencies. Adjusted cash profit margins landed in line with expectations across the board, and the private healthcare group returned to profit on a reported basis – helped by the fact that it did not endure the same £164m impairment charge that it took a year earlier, pertaining to its stake in Spire Healthcare (SPI).
Management noted progress in adapting Mediclinic to a changing regulatory backdrop – especially in its Hirslanden business in Switzerland (its largest area by sales), where big changes have led certain treatments to shift from in-patient to outpatient classification. Hirslanden has continued to focus on achieving a lower-cost model. Revenues here rose by 5 per cent to CHF871m (£686m).
That business reported a cash conversion ratio of 86 per cent, up from 51 per cent, and the business reduced its secured debt by CHF86m. While CHF50m of this constituted an annual repayment, the rest was optional. A further optional repayment looks likely in the second half.
UBS expects adjusted EPS of 26.2p for FY2020, down slightly from 26.9p in FY2019.
| MEDICLINIC INTERNATIONAL (MDC) | ||||
| ORD PRICE: | 381p | MARKET VALUE: | £2.81bn | |
| TOUCH: | 380.5-381.7p | 12-MONTH HIGH: | 393p | LOW: 288p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 452p* | NET DEBT**: | 51% | |
| Half-year to 30 Sep | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 | 1.39 | -150 | -22.8 | 3.20 |
| 2019 | 1.52 | 111 | 14.8 | 3.20 |
| % change | +9 | - | - | - |
| Ex-div: | 05 Dec | |||
| Payment: | 17 Dec | |||
| *Includes intangible assets of £1.65bn,or 224p a share. **Excludes lease liabilities of £706m. | ||||
