TRADING UPDATE
What is hurting Advanced Health's growth plans?
The company, like the hospital industry, has been under pressure for some time
Day hospital group Advanced Health’s share price has come under pressure because its growth strategy is taking longer to bear fruit than expected. On Friday, the share price was down 1.85% at R1.06, closing in negative territory for the third week running. The company, like the hospital industry, has been under pressure for some time, having declined 11.67% over the past 30 days of trade. Onerous health regulations and slow growth in medical-aid subscriptions have been key contributors. Advanced Health listed on the JSE’s AltX in 2014. A poor trading update from the group that indicated an increased loss for the 2017 financial year, as well as a material rights issue, revealed a sluggish growth strategy, said Mvunonala Investments equity analyst Matthew Zunckel. Although it had aggressively rolled out day hospitals since listing, the facilities appeared to be taking longer to reach breakeven than originally guided, he said. "I think investors are losing patience, this is reflected i...
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