Netcare lifts profits, upbeat about SA

Johannesburg - Africa's largest hospital group Netcare Ltd [JSE:NTC] on Monday reported a 28% rise in first-half earnings and increased its capital spending on a favourable outlook for South Africa.

Netcare, which operates hospitals in South Africa and Britain, said adjusted headline earnings per share for the six months to end-March rose 28% to 42.9c. Headline earnings, the main profit measure in South Africa, strip out some one-time and financial items.

Group revenue fell 5% to R11.04bn due to the stronger rand.

Constant currency operating profit for the same period rose 14% to R2.07bn.

"The outlook for South Africa remains stable and positive ... the underlying fundamentals of the UK private healthcare sector remain sound, with NHS budgetary pressures likely to increase demand for private facilities further," it said in a statement.

The company said it planned an additional R670m in capital expenditure over the next three years, on top of the R800m already approved for the year.

Netcare said it has yet to make a final decision regarding the public listing of GHG and its timing.

"Whilst preparation for the IPO has progressed well, given prevailing market conditions, a final decision as to the IPO and its timing has yet to be made," it said.

GHG is a UK provider of private care with a national network of 57 hospitals operating under the BMI Hospitals brand name.

- Reuters