|
|
|
Outlook for 2007
Revenue
(R million) |
|
 |
We are targeting revenue growth of 9% to 11% in the
South African operations in the 2007 financial year. The
commissioning of two new hospitals in 2007 should contribute
to growth in the second half of the financial year. We anticipate
revenue from the UK to be in the region of £650 – £700 million.
It is difficult to forecast the Netcare UK revenue from the NHS
services. Several new projects will be mobilised in 2007, but the
timing thereof is uncertain. |
| |
|
EBITDA1 margin
(%) |
|
 |
We aim to maintain the South African EBITDA margins above
20% in the 2007 financial year. The commissioning of two
new hospitals will place pressure on margins as they incur
initial losses during their start-up phases. The combined
UK businesses achieved EBITDA margins of 24% (before
restructuring and bid costs). We aim to enhance these margins
through various initiatives aimed at increasing efficiencies
across the group of hospitals in areas such as procurement,
nurse resourcing and completeness of revenue. |
| |
|
Net debt2
(R million) |
|
 |
We estimate South African capital expenditure will be in the region
of R800 to R900 million in the 2007 financial year. The capital
expenditure for the UK will be limited by the cash flows. We expect
to spend in the region of £20 to £30 million on maintenance capital
expenditure for the private hospital services. We are focused on
reducing the South African debt. We have successfully refinanced
the UK debt and expect it to remain at such levels for the next few
years until we realise proceeds from the sale of properties. We do
not expect GHG to pay a dividend in the short to medium term.
Netcare has no formal dividend policy, but remains committed to
delivering attractive total returns to shareholders. |
 |
|
1 EBITDA before deducting restructuring charges, BEE share-based expense and NHS bid costs
2 The UK net debt of R25 724 million has no recourse to the South African operations
|
