Life Healthcare gives R10.6 billion ‘gift’ to shareholders

Life Healthcare declared a special dividend, returning an ‘extra’ R8.8 billion to shareholders.

In its financial results for the year ended 30 September 2024, the group said that it saw good growth in group revenue, which reached 12.7% and was driven by robust activity growth in southern Africa.

The group’s paid patient days (PPD) in acute hospitals also grew by 1.6%.

The group also concluded a transaction to sub-license one of Life Molecular Imaging’s (LMI) early-stage novel products (RM2) for USD 36 million (R664 million) and saw strong growth of 91.9% in NeuraCeq (a medication used for brain scans) doses sold.

The group also concluded the disposal of Alliance Medical Group (AMG) on 31 January 2024 and received R10.2 billion in net cash proceeds after the settlement of all offshore debt and transaction costs.

From the AMG proceeds, the group paid a special dividend of R6.00 per share (R8.8 billion) to its shareholders in April.

The group’s basic earnings per share grew by over 1,000% to 328.8 cents in the current financial year, and Headline earnings per share (HEPS) grew by 73.4% to 152.9 cents per share.

The group thus declared a final cash dividend of 31.0 cents per share and a special dividend of 70.0 cents per share. These were declared from income reserves.

Combined with the latest dividends, the group returned R10.6 billion to shareholders.

Outlook

“For the 12 months to 30 September 2025, the southern African business will continue to grow its underlying asset base adding 55 acute hospital beds, 24 acute rehabilitation beds and starting the build of a new Life Healthcare acute hospital in the Western Cape (140 beds),” said the group.

“The Group will continue to grow its imaging business with further transactions expected to be completed in FY2025 and with further expansion in its nuclear medicine business.”

“The group will look to complete the Fresenius Medical Care (FMC) Namibia and Eswatini renal transactions in FY2025.”

The southern African business will also aim to drive occupancies to 70% with PPD growth expected to be between 1% and 1.5% over the financial year.

“The southern African business will continue to optimise its underlying asset portfolio, further embed the FMC SA renal operations and focus on operational efficiencies.”

“For LMI, we expect sales of NeuraCeq® to continue to grow strongly (c. 50%). LMI will continue to try and maximise the product pipeline as well as sustain the research and development supplies and services business.”

“Capex for FY2025 is expected to be R2.6 billion.”

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