Mediclinic - trading update
Mediclinic International plc, the international private healthcare services group, provides the following trading update ahead of the publication of the Group's results for the year ended 31 March 2019 ("FY19") on 23 May 2019. The information on which this trading update is based represents the Group's latest financial estimates and has not been reviewed and reported on by Mediclinic's external auditors. All financial figures, unless explicitly stated, are adjusted*, reported under the IAS 17 accounting standard and compared with the Group's results for the year ended 31 March 2018 ("FY18").
At the Group level, in constant currency, FY19 revenue was up around 3.5% and EBITDA was down around 1.5%. On a reported basis, FY19 revenue was up around 2.0% (FY18: GBP2 870m) and EBITDA was down around 3.5% (FY18: GBP515m). Adjusted earnings per share is expected to be around GBP27 pence (FY18: GBP30.0 pence). The average foreign exchange rates for FY19 were GBP/CHF 1.30, GBP/ZAR 18.01 and GBP/AED 4.82 (FY18: 1.29, 17.22 and 4.87 respectively).
Mediclinic maintains sufficient financing flexibility across the entire Group to fund continued investment in the business and incremental growth. In Switzerland, an amendment to the financing agreement was entered into in March 2019 re-calibrating the covenants to reflect the impact of regulatory changes on the profitability of the business.
In line with the requirements of IFRS, the Group performs an annual review of the carrying value for tangible and intangible assets. This will be reported with the results for the year ended 31 March 2019. Any potential impairment charge will be non-cash and excluded from the adjusted earnings metrics.
The Group will adopt the new IFRS 16 accounting standard (addresses the definition of a lease, recognition and measurement of leases and establishes principles for reporting useful information to users of financial statements about the leasing activities of both lessees and lessors) from 1 April 2019. Further disclosure will be provided with the Group's FY19 preliminary results on 23 May 2019.
*The Group uses adjusted income statement reporting as non-IFRS measures in evaluating performance and as a method to provide shareholders with clear and consistent reporting. The Group's non-IFRS measures are intended to remove from reported earnings volatility associated with defined one-off incomes and charges which were previously referred to as underlying.
**AED3 050m and 13.0% reflect the adjusted proforma FY18 revenue and EBITDA margin following the adoption of IFRS 15. As previously reported, the Group adopted IFRS 15 "Revenue from Contracts with Customers", from 1 April 2018. IFRS 15 has implications for Mediclinic Middle East where certain operating expenses will be reclassified to revenue. While reported revenue in FY18 will not be re-stated, revenue growth guidance reflected the proforma net revenue in FY18.