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Research archive for MEI

Mediclinic half year numbers - not going so well in UAE

11 November 2016

Mediclinic reported numbers for their half year to end September. "Things" are taking a little longer with regards to integrating the Al Noor reverse listing. Not the listing itself, that has gone OK, rather the AL Noor operations into the existing Middle East businesses that Mediclinic had before they became a London listed business earlier this year. Excluding the Al Noor business, revenues grew by 11 percent, including, it was up 27 percent to 1.283 billion Pounds. Operating profits increased 10 percent. The big change in these results is that the weighted number of shares in issue grew to 737 million from 545 million. Earnings per share decreased 26 percent to 12.8 pence for the half. The dividend was hiked by 20 percent to 3.2 pence.

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Mediclinic 5 month trading numbers

28 September 2016

Mediclinic has released a five month trading update this morning. The first half of the year ends on the 30th of September, that is Friday, right? The results themselves are expected to be released on the 10th of November. Is this a case of simply taking the five month revenues and presuming that the last month will be similar? It is a bit weird to have a five month trading update, I know that it is something that Richemont does too.

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Mediclinic statement - Revenue down, cost cutting going well

12 September 2016

Mediclinic produced a trading update at the get go on Friday that the market received favourably, the stock was up two and a half percent. Remembering however that the stock took some heat on Thursday, during that session the share price sank five percent. Hmmm .... if the market knew this was coming it could have been some positioning of some sort, call me a sceptic on share prices moving heavily on larger volumes ahead of an announcement. The trading update is titled Trading update and Middle East integration.

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Mediclinic International FY numbers - first as London listing

26 May 2016

Mediclinic reported numbers yesterday, for the first time as a UK listed entity. So what is important to note is that there is really no comparable currency of comparable business in the current format to measure against. A rights issue, the buying of Al Noor, reversing into the London listing and on top of it all, the confusion amongst retail investors of what their actual price is for the stock. We can deal with all of those briefly. Firstly, herewith a table with the "comparable" period from last year:

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Mediclinic corp action

09 February 2016

What happened to Mediclinic yesterday? Effectively the old Mediclinic as you know it, the listed entity here, stopped trading. And as such, the code for Mediclinic, MDC, will return you currently a flat price at the close of trade Friday. What you end up with, as per our explanation from November titled Mediclinic, Al Noor update, is 0.625 shares in the new entity, currently called Al Noor. The share code tells you that the name change will take effect shortly, MEI is no doubt short for Mediclinic International. The share price here in Johannesburg will trade as a function now of the primary listing in London. Although as you know, most of the shares appear here on the share register, which is very different to say for instance, British American Tobacco or Glencore, those are different entities.

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Mediclinic, Al Noor update

18 November 2015

The Mediclinic circular has been posted and if you are a shareholder of the stock you will have the opportunity to vote, the Mediclinic shareholders will vote mid December. I hope that you are all still around. The Al Noor shareholders will also vote on this, the NMC Health deal disappeared on Monday, they announced that they would not be pursuing the purchase of their Emirates rival. The Al Noor information does not appear (as we write) on their website yet, I will continue to monitor. Let us presume that all the shareholders on both sides vote yes (they probably will), the new Al Noor shares (that you will own in the ratio of 0.625 per Mediclinic share you currently own) will be listed on the 1st of February, next year. The business will then change its name to Mediclinic International PLC, and will have the main board listing in London, an inward secondary listing here in Jozi.

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Mediclinic half year numbers

12 November 2015

Mediclinic have released their half year results to end September this morning. Revenue up 16 percent to 19.5 billion Rand, normalised EBIDTA up 16 percent, margins stable at nearly 20 percent. Adjusted basic normalised HEPS up 19 percent to 214.1 cents, the interim dividend was 16 percent higher to 36 cents, hardly a kings ransom, the company has been growing aggressively and has just asked their shareholders to shell out serious money in order to acquire a 29.9 percent stake in Spire Healthcare (10 billion Rand rights issue), the dividend is going to be not the reason you own this stock currently.

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Mediclinic and Al Noor to tie up

14 October 2015

Wow, that was exceptionally quick. It seems that the Al Noor and Mediclinic guys worked feverishly to thwart the NMC Health advances announced Friday. This morning there is an announcement that Mediclinic will effectively gain a main board listing on the LSE if this deal would go ahead, and such would be the size and scale of the merged companies that it would be a FTSE 100 constituent, true story. It is not easy to follow, and a little complicated as a result of obtaining the inward listing (again, as a result of exchange controls), the payment of a special dividend to sweeten the deal and raising of money by Remgro in order to achieve this. Remgro will continue to be the anchor shareholder for Mediclinic, they have already indicated that they will vote in favour of the deal, on the Al Noor side the shareholder missing from the equation is the private equity crowd, Ithmar capital who haven't given an irrevocable yet. 28 percent held by Sheikh Mohammed Bin Butti Al Hamed, and 6 percent of Al Noor held by founder and deputy chairman, Dr. Kassem Alom, have agreed to vote in favour.

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New contender for Al Noor

12 October 2015

The Mediclinic share price sank on Friday, not through any announcement from that company, rather through another business impacting on a pending deal that may, or may not take place. You will recall from just a few days back that we wrote about a Mediclinic potential tie up with Al Noor, taking a short and concise view of the Al Noor business. What transpired on Friday afternoon was that a rival bid for Al Noor was being considered from suitor NMC Health, another Emirates based business, which also happens to be listed in London.

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Mediclinic potential tie up with Al Noor

06 October 2015

A simple SENS announcement from Mediclinic yesterday that they were trading under cautionary has led to an announcement this morning. Well, the news was known yesterday in London, the share price of Al Noor Hospitals group (listed on the London Stock Exchange) rose 7.6 percent, the release came at 4 pm London time (just as our market closed). The company (Al Noor) has per their website overview segment was founded in 1985 and operates in Abu Dhabi and Dubai. Al Noor operates three hospitals and seventeen medical centres in the Emirates, the main focus is Abu Dhabi. As of the end of last year the company had 218 operational beds, and had nearly two million outpatient visits. There was a couple of graphs that stood out for me, in the annual report (2014) of Al Noor:

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Mediclinic rights update

11 August 2015

When are you going to get your Mediclinic shares? In two weeks time. Be patient. The N shares will trade for the balance of this week, the shares and cash will swap hands on the 24th of the month, to give you a blended price, remember you are getting the rights at a discount, 90 Rand a share. Relax, we haven't forgotten about you or your rights, we are on top of it.

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Mediclinic Rights issue - We recommend that you follow

22 July 2015

Ok, listen up shareholders, Mediclinic announced their rights issue yesterday. This is of course in relation to their purchase of a 29.9 percent stake in Spire Healthcare from Remgro, who had the immediate resources to do the deal first. Mediclinic are going to be raising 10 billion Rands. Here goes, per 100 shares that you hold, you are going to get 12.80145 rights at 90 Rand a share. Just a reminder, the share price is currently at 106 odd Rand, so it makes sense to follow your rights. So around 11 percent of the value of your shares currently, that is what you have to factor in for the rights. Remgro are underwriting the rights issue.

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Mediclinic moves to the UK

22 June 2015

Whoa! This is huge. Mediclinic are going to buy a 29.9 percent stake in a LSE listed business called Spire Healthcare Group from Remgro, who will acquire it first from a crowd called Cinven. The exiting shareholder, Cinven, is a private equity business who initially bought the whole business, which consisted of 25 hospitals back then from BUPA in June 2007 for 1.44 billion Pounds. The business, Spire, was listed in 2014, Ciniven's holding went from 98.6 percent to around 54 percent. I am not entirely sure whether or not they will still hold stock after this, Cinven that is, in Spire. In April this year, JP Morgan placed 40 million shares with institutional buyers to see the Cinven stake reduce to 38.3 percent. They had previously done almost exactly the same number of shares in January of this year, clearly the stake was there to be exited and this probably serves the Spire Management really well.

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Mediclinic, further thoughts

22 May 2015

Whoa!! Why did Mediclinic get trounced so much yesterday? Concerns over the margins in Switzerland and the UAE falling. The falling margins in Switzerland are related to specifically billing systems that have been installed to bill the state. Costs have had to rise with the new system having been implemented, new people. Equally, added to that was accepting more state patients, which is less profitable business than the folks with private insurance. You must remember that out of pocket spend in Switzerland is higher than anywhere in the world, the concentration of older and richer people in Switzerland is higher than in most places. The World Health Organisation estimates that it (out of pocket spend) is around 2500 Dollars per household. At the opposite end of the spectrum is a country by the name of Kiribati. 100 thousand permanent residents have an average out of pocket spend per household of 20 US cents. The climate in Kiribati, looking at their Wikipedia page looks the same for each and every month of the year.

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Mediclinic full year numbers

21 May 2015

Another one of our core holdings that had numbers this morning is Mediclinic, Summarised Audited Group Results For The Year Ended 31 March 2014. First things first, it is always necessary to interrogate why we would want to hold this business. In other words, what are the prospects for the business and by extension, you, the shareholder. Ultimately all we care about are the relative returns of the overall portfolio which is made up of different companies. What times frames do you give to a normal investment? I would think a minimum of five years. That is more than enough time for management to execute.

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