Mediclinic treats 2nd wave challenges with efficacy

Mediclinic SENS statement:

Q3 Trading Update

Mediclinic International plc, the diversified international private healthcare services group, provides the following trading update for the third quarter period between October and December (“Q3”) of the financial year ending 31 March 2021 (“FY21”).


• Effectively navigating the Covid-19 pandemic; commenced government-led Covid-19 vaccination programmes at Hirslanden and Mediclinic Middle East facilities

• Q3 Group revenue up 2.5%; supported by unseasonably high inpatient activity in December 2020 at Mediclinic Southern Africa and Mediclinic Middle East

Commenting today, Dr Ronnie van der Merwe, Group Chief Executive Officer, said: “Through the third quarter of our financial year, a more severe second wave of Covid-19 cases has placed greater demand on our acute care capacity. We continue to effectively navigate the challenges this presents through the tireless efforts of our medical professionals and staff who deserve our sincere appreciation and thanks.

“Unlike early in the first wave, there have not been national restrictions on elective procedures and outpatient activity during Q3. Our ability during the period to continue with elective procedures, when and where we have capacity, as well as the unseasonable demand for our inpatient services in Southern Africa and the UAE during December 2020 supported our Q3 financial performance.”

The information on which this 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.

Read also: Investors ignore writedowns and losses as Mediclinic tackles Covid-19 with healthy cash position

Financial performance

Unseasonably high levels of inpatient activity at Mediclinic Southern Africa and Mediclinic Middle East in December 2020 supported the Group financial performance in Q3. This was partially offset by the lower patient volumes at Hirslanden due to the impact of Covid-19 and increasing lockdown measures.

The Group continues to observe similar trends to those experienced in the first half of the year in relation to personal protective equipment usage and consumable supply costs.

The ongoing operational and financial resilience of the Group was evidenced by cash and available facilities at the end of December 2020 of around £660m, flat compared with the end of September 2020. This includes an optional debt repayment at Hirslanden of CHF50m paid during Q3 resulting in a reduction in overall Group net debt. The Group’s year-to-date (“YTD”) cash conversion2 improved during the period to 59% (1H21: 42%), driven by improvements at Hirslanden and Mediclinic Middle East. The Group’s cash conversion target remains at 90–100%. In the UAE, the variable pace of payments from healthcare insurers continues, as historically experienced in the region, with a substantial payment recently received after the end of Q3. All covenant test waivers remain in force. For Mediclinic Middle East, the first of such waived covenant compliance tests is to be performed at the end of June 2021 and for Hirslanden and Mediclinic Southern Africa these will be performed at the end of September 2021.


The pandemic has highlighted the global demand for quality healthcare services and the integral role played by private providers in supporting national governments and healthcare authorities. Ageing populations, a growing disease burden and digitalisation of healthcare are accelerating opportunities for expansion and advancement across the continuum of care. Mediclinic is also focused on several strategic projects, including virtual care solutions, in response to the pandemic and the evolving needs of its clients.

The uncertainty caused by the pandemic has reduced visibility on activity levels and therefore the Group remains cautious as to the full impact on near-term operating performance. As previously guided, the impact of national lockdowns and restrictions on non-urgent elective care results in the postponement of patient treatments. When capacity becomes available, the Group is well positioned to deliver the services and care required to address patient demand.

The Group’s FY21 trading update is currently scheduled for mid-April 2021.

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