| Friday 12 November 2021 Good morning Voornaam,
Mediclinic has released its interim results for the six months ended September. We know that hospitals have had a much better time of things this year, as Covid caused a lot of disruption last year. Revenue is up 15% year-on-year and 11% vs. pre-pandemic levels, with both numbers reported on a constant currency basis. Adjusted EBITDA margin has improved to 15.8%, broadly in-line with pre-pandemic levels. Although the balance sheet has strengthened, the dividend has not been reinstated.
Advanced Health Limited subsidiary Presmed Australia has exercised its option to move to a controlling stake in Hereward and Kingham (collectively "METWEST") for a total consideration of AUD2.3 million. METWEST consists of an ophthalmology consulting practice and a day hospital operating from the same premis es in Sydney.
Grand Parade has received the first tranche of cash (R465 million) from ECP Africa for the sale of Burger King. Some of it needs to go towards paying taxes and R88 million will be used in partially settling debt. The rest will be used for a special dividend of 88 cents per share.
Invicta has released a trading statement that has highlighted the attention that investors will need to pay to the numbers. There are various profits on disposal and results from businesses that are in one period and not the other. The wild swing in EPS is best ignored, as HEPS (which removes as many once-offs as possible) will increase by between 5% and 15%.
Sappi had Twitter laughing throughout the day, with the company's initial and then revised SENS announcements both demonstrating that Sappi didn't know how to report a swing from losses to profits as a percentage. Top tip: dragging the form ula down in Excel isn't the way to do it. The good news is that Sappi is profitable again for the full financial year thanks to a strong sales performance. The bad news is that the market wanted more, with Sappi down more than 5.5% by afternoon trade.
It's been a long time coming for those of us holding gold shares, but high inflation numbers in the US are finally driving a spike in gold prices. Gold mining groups give investors a leveraged play on the metal, with increases in revenue dropping to the bottom line as the mines have high fixed costs.
Gold Fields released an operational update for the three months ended September. Gold production increased 8% and all-in cost fell 3% vs. the prior quarter. The share price has rallied over 14% in the past two days.
Harmony Gold also released an update, noting that its old assets only contributed 4% of free cash flow in the latest quarter. Newly ac quired and improved assets were good for 62% of cash flow. The narrative the company wants in the market is that it has invested in production efficiency, which is well-timed for a gold price rally.
Today is Friday, which means InceConnect is full of wonderful content from the team at DealMakers. To supplement it, I decided to write on MultiChoice's interim results (which clearly show the power of sport for DSTV) and The Foschini Group's results.
Thanks for choosing to read InceConnect this week. Have a terrific weekend!
The Finance Ghost
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