Wrap Text
Summarised group results for the year ended 30 September 2025 and cash dividend declaration
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
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
SUMMARISED GROUP RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 AND
CASH DIVIDEND DECLARATION
- Solid revenue growth from continuing operations of 6.0% to R25.1 billion
- Activity growth in paid patient days (PPDs) of 1.1% resulting in occupancy of 69.7%
(2024: 69.0%)
- Included in the results are facilities the Group is remediating through its asset optimisation
process. Excluding the impact of these assets, the balance of the business recorded:
- PPD growth of 2.2%;
- Occupancy of c.72%
- Normalised earnings per share (NEPS) increased by 10.1% to 100.3 cents
- The Group concluded the disposal of Life Molecular Imaging (LMI) for up to USD755 million
of which USD355 million was received upfront. The balance is contingent on future sales of
LMI products through to 2034. A special dividend of R2.35 per share (R3.4 billion) was paid
on 22 September 2025 from these proceeds
- Healthy gearing of below 1 times and a return on capital employed (ROCE) of 17.8%
- The Board has declared a final cash dividend of 35.0 cents per share, an increase of 12.9%
compared to the prior year. Total distributions for the year, including special dividends, amount
to R4.3 billion
Earnings per share (EPS), headline earnings per share (HEPS) and normalised earnings
per share (NEPS)
Total EPS (from continuing and discontinued operations) decreased by 20.0% to 263.0 cents
(2024: 328.8 cents) largely as result of the items listed below.
- In the prior year, the impact of the disposal of Alliance Medical Group (AMG) and the benefit
of receiving an upfront payment for sublicensing one of LMI's products contributed to a
R3.2 billion post-tax profit.
- In the current year, the disposal of LMI generated a net post-tax profit of R2.4 billion. The
disposal of LMI creates some accounting anomalies where the adjustment to the liability
relating to the original owners of LMI is reflected as part of continuing operations.
- Impairments to the value of R211 million were recognised in relation to underperforming units.
Pro forma information below is provided to exclude the impact of the adjustment to the LMI-
associated Piramal liability (original owners of LMI).
NEPS, which excludes non-trading related items, better reflects the performance of our underlying
business and increased by 10.1% to 100.3 cents (2024: 91.1 cents).
2025 Pro forma 2025 2024 % change % change
adjustments Pro forma actual 2025
2025 vs proforma
Cents Cents Cents Cents 2024 vs
2024
From
continuing
operations
EPS (106.9) 201.0 94.1 92.2 > (100) 2.1
HEPS (93.9) 201.0 107.1 93.4 > (100) 14.7
NEPS 100.3 - 100.3 91.1 10.1 10.1
From
continuing and
discontinued
operations
EPS 263.0 - 263.0 328.8 (20.0) (20.0)
HEPS (112.1) 201.0 88.9 152.9 > (100) (41.9)
Financial position and liquidity
The Group is in a strong financial position as at 30 September 2025 with net debt to normalised
EBITDA (as per bank covenant definitions) of 0.01 times, well within our covenant of 3.5 times
(2024: 0.45 times). This metric is distorted by the Piramal liability which will be settled in H1-2026
with the LMI proceeds. Including this liability, the net debt to normalised EBITDA increases to 0.77
times.
Cash generated from continuing operations was R4.6 billion and represented 119.6% of
normalised EBITDA from continuing operations.
Cash dividend
Final dividend
The Board approved a final gross cash dividend of 35.0 cents per ordinary share. The dividend
has been declared from income reserves and is subject to South African dividend withholding tax
of 20%, which will be applicable to all shareholders not exempt therefrom, after deduction of which
the net cash dividend is 28.0 cents per share.
The Company's total number of issued ordinary shares is 1 467 349 162 as at 27 November 2025.
The Company's income tax reference number is 9387/307/15/1.
In compliance with the requirements of the JSE, the following salient dates are applicable:
Last date to trade cum dividend Monday, 15 December 2025
Trading ex-dividend commences Wednesday, 17 December 2025
Record date Friday, 19 December 2025
Payment date Monday, 22 December 2025
Share certificates may not be dematerialised or rematerialised between Wednesday,
17 December 2025 and Friday, 19 December 2025, both days inclusive.
2026 Outlook
Grow
For the 12 months to 30 September 2026 (FY2026), the Group will continue to grow its underlying
asset base in strategic locations adding 89 acute hospital beds, 40 acute rehabilitation beds and
20 renal stations. The Group will continue with the building of the new 140 bed Life Paarl Valley
Hospital, which is expected to open in FY2027. In addition, a new cathlab and a new vascular lab
will be added to the acute business. The Group will continue to grow its diagnostics business and
will be adding three new PET-CT sites. The two cyclotrons built in partnership with Africa X-Ray
Industrial and Medical Proprietary Limited (Axim) will become operational after completing the
regulatory approval process. The Group is in the process of acquiring an additional hospital
property which is currently leased.
Drive
The Group will continue to drive occupancies to 70% with PPD growth expected to be c.1.0%.
The Group expects to recruit c.140 new specialists.
Optimise
As part of the Group's asset optimisation process, the Group will focus on operational efficiencies
and cost management and continue the improvement of Life Renal Dialysis.
Capex for FY2026 is expected to be c.R2.5 billion.
Audit opinion
The Group has issued its audited annual financial statements for the year ended 30 September
2025. Deloitte & Touche, the Group's independent auditor, has audited the consolidated and
separate annual financial statements and has expressed an unmodified audit opinion thereon.
Thanks
The Company's ability to effectively respond to operational challenges, while continuing to provide
quality care to its patients, is largely due to the resilience, dedication and unwavering support of
its employees, specialists and other healthcare professionals. Life Healthcare would like to thank
them for their tireless work and for the care they deliver.
The Group would also like to thank LMI's employees who have not only continued to deliver
excellent services but also spent considerable time and effort working with the Group and its
advisors on the LMI disposal transaction.
Results announcement
This results announcement is a summary of the information contained in the detailed audited
consolidated annual financial statements published on 27 November 2025 and does not contain
full or complete details.
The results and the detailed audited consolidated annual financial statements, approved on 26
November 2025, are available on Life Healthcare's website
(https://www.lifehealthcare.co.za/investor-relations/results-and-reports/) and through the JSE
cloudlink at https://senspdf.jse.co.za/documents/2025/JSE/ISSE/LHC/Final25.pdf
Any investment decisions by shareholders, noteholders and/or investors should be based on
consideration of the audited annual financial statements as a whole and shareholders,
noteholders and/or investors are encouraged to review the audited annual financial statements,
which is available for viewing on the links as set out above.
The contents of the results announcement are the responsibility of Life Healthcare's board of
directors, and it has not been reviewed nor audited by the Group's auditors.
Executive directors: PG Wharton-Hood (Chief Executive), PP van der Westhuizen (Chief
Financial Officer)
Non-executive directors: Dr VL Litlhakanyane (Chairman), Dr MF Abdullah, Dr JE Bolger,
Dr RA Campbell, CM Henry, Prof ME Jacobs, TP Moeketsi, AM Mothupi-Palmstierna, Adv M Sello,
and F Tonelli
Company Secretary: J Ranchhod
Registered Office: Oxford Parks, 203 Oxford Road (cnr Eastwood and Oxford Roads), Dunkeld,
2196
Equity Sponsor: Rand Merchant Bank, a division of FirstRand Bank Limited
Debt Sponsor: Questco Corporate Advisory
Note regarding forward-looking statements: 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, are the
responsibility of the directors and have not been reviewed or reported on by the Group's external
auditors.
Date: 27 November 2025
Date: 27-11-2025 07:05:00
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