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LIFE HEALTHCARE GROUP HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2003/002733/06)
ISIN: ZAE000145892
JSE and A2X share Code: LHC
("Life Healthcare" or "the Group" or "the Company")
LIFE HEALTHCARE FUNDING LIMITED
(Incorporated in the Republic of South Africa with limited liability)
(Registration number 2016/273566/06)
LEI: 3789SJPQJZF8ZYXTZ394
Bond company code: LHFI
("Life Healthcare Funding")
TRADING UPDATE AND TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2026 AND CHANGES TO THE
BOARD OF LIFE HEALTHCARE FUNDING
The Group has improved its normalised EBITDA margin, and normalised earnings per share (NEPS) is expected to increase by
between 6% and 10%.
Trading update and result highlights
Life Healthcare provides shareholders with a voluntary trading update covering the six-month period ended 31 March 2026 ("the current
period" or "H1-FY2026"). Reference is also made to the six-month period ended 31 March 2025 ("prior period" or "H1-FY2025") and
the year ended 30 September 2025 ("FY2025"). All commentary relates to the results for the current period, and comparisons are to
the prior period, unless otherwise stated.
The Group has experienced a challenging operating environment in H1-FY2026 primarily impacted by a funder being placed under
curatorship. Despite this, the Group has delivered satisfactory revenue growth. Revenue for H1-FY2026 increased by between 2.2%
and 2.6% compared to the prior period, impacted by a reduction of c. R130 million of revenue from the funder placed under curatorship.
Paid patient days (PPDs) declined by c. 0.4%(1), primarily driven by the acute hospital operations, where PPDs declined by c. 0.9%(1),
partially offset by growth of c. 3.4% in complementary businesses. On a like-for-like basis, excluding the funder placed under
curatorship, PPD's would have increased by c. 0.9%.
The Group achieved an average tariff increase of 3.3%. Revenue per PPD increased by c. 4.0%(1) for the current period benefitting
from the increase in surgical PPDs. Activity trends improved in the second quarter, supported by a recovery in theatre minutes.
Weighted average occupancy for H1-FY2026 was 67.5% (H1-FY2025: 68.8%(1)), with the second quarter exceeding 70%.
Normalised EBITDA(2) increased by between 4.9% and 5.3%, through a combination of operational efficiency and the impact of margin
improvement projects, contributing to an improvement in the southern Africa normalised EBITDA margin of c. 0.5% compared to the
prior period.
(1) On a like for like basis, excluding PPDs of facilities sold/closed.
(2) Healthcare defines normalised EBITDA as operating profit before depreciation on property, plant and equipment, amortisation of intangible
Life assets and non-trading related costs and income.
Trading statement
The disposal of Life Molecular Imaging (LMI) in FY2025 significantly impacted earnings in the prior period, which has made the
comparability between the two financial periods difficult.
The Group's H1-FY2026 results are still in the process of being finalised, however, there are several items that are already known to
have impacted the results. These include:
' The funder placed under curatorship as mentioned above;
' Impairments of non-acute businesses to the value of R38 million; and
' The prior period included a R2.9 billion fair value adjustment to the Piramal liability (associated with LMI). This fair value
adjustment impacted both EPS and HEPS from continuing and discontinued operations. Furthermore, due to the pre-existing
nature of the Piramal liability, which remained with the Group, the adjustment also impacted both EPS and HEPS from continuing
operations. The fair value adjustment is excluded from NEPS.
The table below summarises the expected earnings for the current period. Normalised earnings per share (NEPS), which excludes
non-trading related items, better reflects the performance of our southern African underlying business.
Earnings per share H1-FY2026 H1-FY2025 Pro forma Pro forma % change Pro forma
(cents) (expected) (reported) adjustments H1-FY2025 H1-FY2026 % change
H1-FY2025 (reported) (expected) vs H1-FY2026
(reported) (note 1) H1-FY2025 (expected) vs
(reported) H1-FY2025
(pro forma)
From continuing
operations
NEPS +52.0 to +53.9 49.0 - 49.0 6% to 10% 6% to 10%
EPS +48.5 to + 50.6 -150.6 202.8 52.2 >100% -3% to -7%
HEPS +50.6 to + 52.6 -152.2 202.8 50.6 >100% 0% to 4%
From continuing and
discontinued
operations
EPS +51.5 to +54.2 -155.2 223.8 68.6 >100% -21% to -25%
HEPS +53.7 to +56.4 -155.8 223.8 68.0 >100% -17% to -21%
Notes
1. Pro forma information
To provide a more realistic assessment of the Group's performance for the prior period, pro forma financial information has been
included in this announcement. The H1-FY2025 pro forma numbers are derived by adding back the fair value adjustment relating
to the Piramal liability and the LMI management incentive scheme charge to the H1-FY2025 results.
The directors are responsible for the pro forma financial information, which has been prepared in compliance with paragraphs 11.8
to 11.18 of the Listings Requirements of the JSE Limited and the SAICA Guide on Pro forma Financial Information, revised and
issued in September 2014 (applicable criteria). The pro forma information does not constitute financial information fairly presented
in accordance with IFRS Accounting Standards.
The pro forma information has been prepared for illustrative purposes only and, due to its nature, may not fairly present the Group's
financial position, changes in equity, results of operations or cash flows. The underlying information used in the preparation of the
pro forma financial information has been prepared using the accounting policies of the Group in place for FY2025.
Life Healthcare expects to release its results for the six months to 31 March 2026 on or about 28 May 2026.
The estimate financial information on which this trading update and trading statement is based has not been reviewed, or reported on,
by Life Healthcare's external auditors.
Changes in directorship of Life Healthcare Funding
Shareholders and noteholders are referred to the announcement released on SENS on 5 February 2026, in which they were advised
that Adam Pyle would retire from the board of Life Healthcare Funding with effect from 1 June 2026. In accordance with paragraph
6.42 of the JSE Debt and Specialist Securities Listings Requirements, shareholders and noteholders are further advised that Brett Mill
has been appointed as a director to the board of Life Healthcare Funding with effect from 1 June 2026. The appointment of Brett was
made pursuant to the policy dealing with the nomination of directors. The board of Life Healthcare Funding welcomes Brett and looks
forward to his contributions to the company.
For further information, please email: Investor.Relations@lifehealthcare.co.za
Dunkeld
7 May 2026
Equity Sponsor: Rand Merchant Bank (a division of FirstRand Bank Limited)
Debt Sponsor: Questco Corporate Advisory
Date: 07-05-2026 10:05:00
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