Wrap Text
LIFE HEALTHCARE GROUP HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2003/002733/06)
ISIN: ZAE000145892
JSE and A2X share Code: LHC
("Life Healthcare" or "the Group" or "the Company")
LIFE HEALTHCARE FUNDING LIMITED
(Incorporated in the Republic of South Africa with limited liability)
(Registration number 2016/273566/06)
LEI: 3789SJPQJZF8ZYXTZ394
Bond company code: LHFI
TRADING UPDATE AND TRADING STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2025
Life Healthcare had a significant year in which it returned substantial funds to shareholders following the conclusion of the Life Molecular
Imaging (LMI) disposal. Total funds distributed to the shareholders via special distributions in the twelve-month period from 1 October 2024
to 30 September 2025 ("the current year" or "FY2025") amounted to R4.5 billion compared to R8.8 billion in the twelve-month period
1 October 2023 to 30 September 2024 ("prior year" or "FY2024").
The Group delivered a good trading performance in the large majority of its facilities. The results were negatively impacted by a few facilities
operating below expectation as well as the renal dialysis business acquired from Fresenius Medical Care (FMC).
Trading and result highlights
Life Healthcare provides shareholders with a voluntary trading update covering the current year. All commentary relates to results for the
current year, and comparisons are to the prior year unless otherwise stated.
The Group delivered good overall revenue growth between 5.5% and 6.5% driven by paid patient days (PPDs) increasing by c.1.1% (1)
supported by a 5.1% tariff increase. The acute business revenue growth for the year was c. 5.0% with acute PPDs growing by c.0.9%. On a
like-for-like basis, the acute revenue increased between 6.1% and 6.5%. Complementary services revenue growth was c. 24.7% benefitting
from acquisitions and PPDs grew by c.3.1%. Healthcare services businesses' revenue declined by c. 7.5 %, impacted by the loss of two
government contracts during H2-FY2024.
The weighted average occupancy for FY2025 was 69.7% vs FY2024 of 69.0%.
Normalised EBITDA(2) increased between 4.5% and 5.0%. On a like-for-like basis, the normalised EBITDA increased between 6.6% and 7.1%.
The Group's normalised EBITDA margin remained stable in H1-FY2025 and H2-FY2025, with the acute business delivering an improved
margin. The overall margin for the current year, compared to the prior year was dampened by:
- Lower margin contribution from the renal dialysis business acquired from FMC. Significant progress was made in H2-FY2025 in
improving the margin, however, this margin still dilutes the overall EBITDA margin; and
- Ongoing overall cost pressures, with inflationary increases outpacing tariff increases.
The Group has identified assets in its portfolio that form part of an optimisation plan with focussed executive attention thereon. In
considering the overall performance of the Group, if these specific facilities are excluded:
- PPDs increased by more than 2.0%; and
- Overall occupancy of c.72% is achieved.
The Group's result for the current year includes the financial impact of the disposal of LMI. The result for the prior year includes the disposal
of the Alliance Medical Group (AMG).
(1) On a like for like basis, excluding PPDs of a facility sold in the current year.
(2) Life Healthcare defines normalised EBITDA as operating profit before depreciation on property, plant and equipment, amortisation of intangible assets
and non-trading related costs and income.
Trading statement
The disposals of LMI in the current year and AMG in the prior year significantly impacted earnings in both periods. Comparability between
the two financial years is complex. The International Financial Reporting Standards as issued by the International Accounting Standards
Board (IFRS Accounting Standards) require any adjustments to the liability relating to Piramal Enterprises Limited (Piramal) be included as
part of continuing operations (due to it being a pre-existing obligation) but any future adjustment to the potential earnouts and milestones
payments to be disclosed as part of discontinued operations.
The table below summarises the expected earnings for the current year and includes the impact of the adjustment to the Piramal liability
(associated with LMI). The table also includes impairments of c.R210 million in respect of underperforming units.
Normalised earnings per share (NEPS), which excludes non-trading related items, better reflects the performance of our southern African
underlying business.
Earnings per share FY2025 Piramal liability FY2025 proforma FY2024 % change % change Notes
(cents) (expected) FY2025 (expected) (reported) FY2025 FY2025 proforma
(note 2.1) (note 3) (expected) vs (expected) vs
FY2024 FY2024
From continuing
operations
NEPS +97.5 to +102.0 - +97.5 to +102.0 91.1* 7% to 12% 7% to 12% 2
EPS -104.2 to -108.8 201.0 +92.2 to +96.8 92.2* >-100% 0% to 5% 2
HEPS -91.7 to -96.4 201.0 +104.6 to +109.3 93.4* >-100% 12% to 17% 2
From continuing and
discontinued
operations
EPS +253.2 to +269.6 - +253.2 to +269.6 328.8 -18% to -23% -18% to -23% 1,2
HEPS -109.2 to -116.9 201.0 +84.1 to +91.8 152.9 >-100% -40% to -45% 1,2
*Restated in terms of IFRS 5 as LMI is disclosed as a discontinued operation
Notes
1. Sale of AMG
- The sale of AMG was concluded in FY2024 and a R2.8 billion profit on disposal was recognised as part of profit from discontinued
operations.
- This once-off gain, in isolation, equated to 191.1 cents per share in FY2024.
- This gain impacted earnings per share (EPS) from continuing and discontinued operations.
- R3.2 billion (included as part of the R2.8 billion profit on disposal) related to an exchange gain which was excluded from headline
earnings per share (HEPS) from continuing and discontinued operations.
- The above had no impact on EPS, HEPS or NEPS from continuing operations.
2. Disposal of LMI
- The disposal of LMI was concluded in July 2025. The Group received an upfront consideration of U$355 million with potential future
earnout payments of up to U$400 million linked to milestones of futures sales of LMI products through to 2034. The Group also
retained the rights to further RM2 milestone and regulatory payments.
- The potential earnout payments, RM2 milestone and regulatory payments are treated as a contingent consideration receivable
measured at fair value through profit or loss from discontinued operations.
- The estimated fair value of the contingent consideration receivable is based on various valuation methodologies which included
significant estimates and assumptions relating to future sales and commercialisation events.
- A c.R5.3 billion profit on disposal was recognised as part of profit from discontinued operations.
- A c.R255 million loss (included as part of the R5.3 billion profit on disposal) related to an exchange loss which was excluded from
HEPS from continuing and discontinued operations.
- The above had no impact on EPS, HEPS or NEPS from continuing operations.
- There was however an adjustment of R2.9 billion to the Piramal liability (as described below) impacting profit from continuing
operations.
2.1 Piramal liability
- There is a contingent consideration payable to Piramal.
- The Piramal liability is a pre-existing liability, measured at fair value and is accounted for as part of continuing operations.
- The fair value adjustment amounted to R2.9 billion and has a substantial impact on the Group's current year earnings from
continuing operations.
- This fair value adjustment, in isolation, equates to a reduction of c. 201 cents per share.
- This fair value adjustment impacts EPS and HEPS from continuing and discontinued operations. Furthermore, due to the pre-
existing nature of the Piramal liability, which remains with the Group, the loss also impacts EPS and HEPS from continuing
operations. The fair value loss is excluded from NEPS.
3. Pro forma information
To provide a more realistic assessment of the Group's performance for the current year, pro forma financial information has been
included in this announcement. The FY2025 pro forma (expected) numbers are derived by deducting the fair value adjustment relating
to the Piramal liability from the FY2025 results.
The directors are responsible for the pro forma financial information, which has been prepared in compliance with paragraphs 8.15 to
8.34 of the Listings Requirements of the JSE Limited and the SAICA Guide on Pro forma Financial Information, revised and issued in
September 2014 (applicable criteria). The pro forma information does not constitute financial information fairly presented in
accordance with IFRS Accounting Standards.
The pro forma information has been prepared for illustrative purposes only and, due to its nature, may not fairly present the Group's
financial position, changes in equity, results of operations and cash flows. The underlying information used in the preparation of the pro
forma financial information has been prepared using the accounting policies in place for FY2025.
The Group's results for the current year are still in the process of being finalised and are expected to be released on SENS on or about 27
November 2025. The estimate financial information on which this trading update and trading statement is based has not been reviewed, or
reported on, by Life Healthcare's external auditors.
For further information, please email: Investor.Relations@lifehealthcare.co.za
Dunkeld
19 November 2025
Equity Sponsor: Rand Merchant Bank (a division of FirstRand Bank Limited)
Debt Sponsor: Questco Corporate Advisory
Date: 19-11-2025 07:05:00
Supplied by www.sharenet.co.za
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
