Mediclinic. Picture: SUPPLIED
Mediclinic. Picture: SUPPLIED

Mediclinic has suspended its final dividend for its year to end March, reporting its loss doubled amid Middle East writedowns, while warning that the effects of the Covid-19 pandemic may last another year.

The private hospital group’s total dividend for the year has fallen 59% to 3.20p (69.5c).

It reported a loss of £320m (R6.9bn) from a loss of £151m in its 2019 year. The latter figure is before the effect of accounting changes that bring losses onto its balance sheet.

The group wrote down its Middle East operation by £481m (R10.4bn), citing changes in the market in Dubai and Abu Dhabi, where it says the market is competitive. Mediclinic Middle East generates just under a quarter of group revenue.

The group has a market capitalisation of about R43bn.

“A high degree of uncertainty remains regarding the progression of the pandemic and its full impact, which may well continue for at least the next 12 months,” said CEO Ronnie van der Merwe.

Mediclinic's share price has fallen 23.55% so far in 2020, having more than halved over the past three years.

gernetzkyk@businesslive.co.za