Advanced Health uses healthier Australian unit to stem bleeding from local operation
Day clinic operator Advanced Health managed to offset some of its South African losses with a sixfold increase in profit from its Australian subsidiary, Presmed, in its 2018 financial year.
The group earns 71% of its revenue from its five day clinics in Australia, two of which were acquired during the reporting period.
While profit from Australia jumped to R7.5m from R1.2m, losses from its 11 day clinics in SA came to R43m, a 5.3% improvement from the previous year’s R45m loss.
The group managed to halve its overall loss for the year to end-June to R30m from R60m in the previous financial year.
"In SA the company continued incurring losses due to the nine facilities — one opened in February — that have been commissioned in a relatively short space of time," the company said in its results statement.
"Management is now focused on marketing strategies aimed at growing patient numbers and increasing earnings. The equipment purchases have decreased compared to historic levels which should bode well for the future cash flow position of the business."
Revenue from Australia grew 33% to R292m and from SA 30% to R117m, taking Advanced Health’s overall revenue for the year to end-June to R409m, a 32% increase on the previous year’s R309m.
Highlights from Australia included the University of Sydney approving its clinics as teaching hospitals.
"In addition, Chatswood Private Hospital — the largest day hospital in Australia for eye, ear, nose, throat and facial surgeries — has become the first Australian private hospital member of the World Association of Eye Hospitals, as well as being approved by the Royal Australian and New Zealand College of Ophthalmologists for ophthalmic registrar training," the company said.