Life Healthcare disappoints investors despite big jump in earnings
Life Healthcare says UK subsidiary Alliance Medical will boost its financial year thanks to the rand weakening against the pound
Life Healthcare's share price fell 8% to R24 on Friday morning after its upbeat trading statement failed to meet the high expectations of investors.
The private-hospital owner said it expected to report on November 23 that its headline earnings per share (HEPS) for the year to end-September grew up to 45%, and basic earnings per share up to 77%.
It achieved this growth per share despite its number of shares in issue increasing 11% following a rights offer in April.
Life Healthcare said its UK subsidiary, Alliance Medical, would boost its 2018 financial year thanks to the rand weakening against the pound and its inclusion for the full year as opposed to only 10 months in the prior year's results.
The coming results would show its overall revenue grew about 12% to R23bn, with its Southern African revenue growing about 8.5% to about R17.2bn, its UK revenue growing about 30% to R5bn, and its Polish revenue growing about 14.5% to R1.2bn.