Reviewed Condensed Consolidated Annual Monetary Statements for the 12 months ended 30 June 2022
ADVANCED HEALTH LIMITED
(Included within the Republic of South Africa)
(Registration quantity 2013/059246/06)
(“the Group” or “Superior”)
ISIN Code: ZAE000189049 JSE Code: AVL
REVIEWED CONDENSED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED
30 JUNE 2022
GROUP OVERVIEW
Superior is a vital position participant in day surgical procedure throughout South Africa and Australia. Personal
healthcare is at present in an thrilling stage of improvement. Superior is positioning itself inside this
setting, filling a niche available in the market for day surgical procedure.
In Australia, the day hospital business stays a robust and viable enterprise sector within the healthcare
system, with over 40% of the Australian inhabitants having personal healthcare cowl. Day hospitals
stay the aggressive possibility for personal sufferers in comparison with in a single day hospitals, with Presmed
Australia (“PMA”) positioning itself properly on this business.
Through the 12 months PMA elevated its shareholding in Metwest Surgical (Hereward) and Eye Centre
(Kingham) (Collectively referred to as Metwest) by 19% rising the entire shareholding to 57%. Metwest
operates a day surgical procedure and an ophthalmology observe in Western Sydney. As of the date of buying
a 57% holding within the Metwest group of firms, PMA obtained management and derecognised the fairness
accounted funding.
Through the 12 months PMA acquired a 40% shareholding in Devonport group of firms (DEH) which
operates a day surgical procedure in Devonport, Tasmania.
In South Africa, medical schemes are aligning themselves to the day hospital mannequin and we’re seeing
traction in them directing surgical procedures in the direction of day hospitals as a substitute, extra cost-
efficient possibility.
IMPACT OF COVID-19
South Africa
Within the 2022 monetary 12 months the results of the COVID-19 pandemic have been considerably lower than what was
skilled within the prior two monetary years. All the restrictive measures and lockdown rules
have been lifted. The outcome thereof was a partial reverse of a optimistic affect attributable to COVID-19 that was
skilled within the 2021 monetary 12 months. In South Africa challenges such a load shedding had a twofold
affect – further value and fewer effectivity.
Australia
Through the 2022 monetary interval, the Australian healthcare sector was additionally impacted by the Delta and
Omicron variants. The COVID-19 Delta pressure hit Australia to start with of July 2021. There have been
a number of implications on the enterprise with nation-wide lockdowns, affected person hesitation and surgical procedure
cancellations occurred in addition to Authorities imposed directive capping surgical procedure throughput primarily based
on the low Eight-week common previous to the lockdown as much as 25 October 2021.
After the Omicron variant was picked up in South Africa on 24 November 2021, this rapidly unfold
around the globe. On 30 November 2021, the Australian Nationwide Cupboard met and launched
statements to try to fight this. The Australian Well being Safety Principal Committee adopted
worldwide developments carefully and suggested the Authorities on how to answer the Omicron
variant. Restrictions have been put in place, which precipitated additional affected person hesitation and surgical procedure
cancellations. As well as, many workers and sufferers have contracted this pressure, delaying surgical procedure.
PMA Administration recognised that these results have been largely non permanent and a matter of timing, with
the backlog beginning to stream again into surgical procedure by way of the day hospitals for the remaining a part of the
2022 monetary 12 months.
FINANCIAL PERFOMANCE
OVERVIEW
The Group reported a revenue of R31.6million (2021: R24.4million) earlier than tax and R13.4million (2021:
R0.6million) after tax. The outcomes have been pushed by efficiency of the Australian phase which
contributed R62.6million (2021: R62.5million) in revenue after tax. South African operations proceed to
be in a loss scenario, nonetheless the losses earlier than tax have been decreased to R41.1million when
in comparison with the prior interval losses of R44.3million.
Australia
The Australian operations stay worthwhile, a revenue after tax of R62.6million (2021: R62.5million) was
reported for the 12 months ended 30 June 2022. Included within the present 12 months’s earnings was R17.7million achieve
on truthful worth on derecognition of Metwest as an affiliate. EBIDTA of R108.0million (2021:
R133.6million) is R25.6million decrease than the prior 12 months. Elements influencing the earnings of PMA
included a decline within the variety of theatre instances that have been carried out when in comparison with the prior
12 months. It is because the backlog of sufferers that might not be operated within the interval ending 30 June
2020 as per authorities COVID-19 restrictions, was included within the prior 12 months outcomes, inflicting a non-
recurring enhance in income for that interval. This surge in theatre instances didn’t happen for the 12 months
ended the 30 June 2022.
PMA continues to be recognised as a key participant throughout the business, sustaining its place because the
premium customary setter throughout the day hospital market, by way of the profitable introduction of an In-
Home Ophthalmic Nurse Program, the Ophthalmologist Registrar Coaching Program, affiliation with
the College of Sydney as a Instructing Hospital group and the retention of Chatswood Personal Hospital
as the one Australian personal hospital member of the World Affiliation of Eye Hospitals.
South Africa
Administration continues its deal with advertising methods aimed toward rising affected person numbers and
rising earnings. Outcomes from South African operations improved 12 months on 12 months with a loss after tax
of R41.0million when in comparison with a loss after tax of R47.7million within the earlier 12 months. A revenue earlier than
tax, curiosity, depreciation, amortization and impairment of R27.4million (R37.3million) was reported
for the South African operations within the present 12 months. The lower in EBIDTA was because of a
lower in income when in comparison with the prior 12 months.
Money stream challenges live on throughout the South African operations because of the continuing
losses inside this enterprise phase.
Soweto Day Hospital Proprietary Restricted is assessed and disclosed as a disposal group as was the case
within the prior 12 months. The corporate’s collectors lodged a request for the corporate to be liquidated which
was initially opposed by the owner. The owner subsequently withdrew its opposition to the
liquidation and on 11 August 2022 a court docket order was issued whereby the corporate was formally positioned
in liquidation.
FINANCIAL RESULTS HIGHLIGHTS
– Income decreased to R664.8million (2021: R680.7million).
– EBITDA decreased to R134.3million (2021: R162.6million).
– Revenue after tax for the 12 months is reported at R13.4million (2021: R0.6million).
– Primary loss per share was reported at four.04 cents (2021: Eight.14 cents).
– Headline loss per share was reported at 5.89 cents (2021: 6.82 cents).
Going concern
Superior Well being attracts consideration to the truth that as at 30 June 2022, the Group had gathered
losses of R294.Eight million (2021: R265.3million) after a revenue of R13.4million (2021: R0.6million). The
Group’s present ratio is 1.27:1 (2021: 1.20:1). The South African operations throughout the Group nonetheless
continued to incur vital losses R41.0million (2021: R47.7million) and had unfavorable cashflows
from operations bearing in mind lease funds. The present liabilities of the South Africa
Operations exceed present property by (R40.9million) (2021: R3.55million). These occasions and circumstances
point out materials uncertainty exists that will forged doubt on the group’s skill to proceed as a
going concern and, due to this fact, that it might be unable to grasp its property and discharge its liabilities in
the conventional course of enterprise.
The reviewed condensed consolidated monetary statements have been ready on the idea of
accounting insurance policies relevant to a going concern. This foundation presumes that funds might be accessible to
finance future operations and the realisation of property and settlement of liabilities, contingent
obligations and commitments will happen within the unusual course of enterprise.
The power of the Group to proceed as a going concern relies on the administrators persevering with to
procure funding for the South African operations, both by way of a sale of strategic investments or by
procuring funding by way of different choices. As said in be aware 23 inbound approaches have been acquired
from events occupied with a possible acquisition of shares that the group holds in PresMed Australia.
A sub-committee has been appointed to guage these approaches.
Administration has put into place completely different plans to show the South African operations round. This
contains:
• A strategic partnership with the medical specialists by way of the sale of shares within the South
Africa working hospitals.
• Proactively participating funders throughout the tariff negotiations to make sure cheap tariff
will increase are achieved. Superior Well being kinds a part of the DHASA (Day Hospital of South
Africa) and the DHASA has been permitted to barter tariffs as a bunch with the medical
schemes for 2023. Superior Well being will make the most of this unity to strengthen its already established
relationship within the funder market and to channel extra volumes to the day hospital group.
• Give attention to advertising methods which embody engagement with medical doctors, recruiting new
specialists, deal with service supply differentiation which incorporates wonderful nursing care.
• A key focus in aggressive pricing in each the personal market in addition to the low earnings medical
schemes. The payment construction inside Superior Well being is engaging to each the funders and
personal sufferers.
Occasions after the reporting date
The liquidation of Superior Soweto Day Hospital was granted by the court docket on 11 August 2022, a
liquidator has been appointed.
AVL acquired unsolicited approaches from a number of events occupied with a possible acquisition of its
shares inside PMA. On 15 June 2022 the board of administrators appointed an inner sub-committee to
conduct a strategic overview of the Superior Well being group to evaluate choices accessible to maximise
shareholder worth in Superior Well being. An Australian advisory agency, Monash Advisory was appointed
to advise and help on the potential transaction. The suggestions of the sub-committee might be
evaluated by the board.
Dividend declaration
No dividend is proposed or beneficial for the monetary 12 months ended 30 June 2022 (2021: Rnil).
Modifications to administrators
Through the interval below overview the next modifications occurred:
Dr J Oelofse’s time period ended – 12/11/2021.
D Goss-Ross was appointed as a director, beforehand was an alternate director – 01/12/2021.
Quick-form announcement
The contents of the short-form announcement are the duty of the Board of Administrators of
Superior Well being Restricted. The knowledge within the short-form announcement is a abstract of the complete
announcement and accordingly doesn’t comprise full or full particulars. The total announcement is
accessible for inspection at no cost, Monday to Friday, throughout workplace hours on the firm’s
registered workplace, the workplace of the Designated Advisor and on the Firm’s web site on
http://www.advancedhealth.co.za/ from Eight August September 2022. The total announcement is
accessible on SENS on Eight September 2022 at
https://senspdf.jse.co.za/paperwork/2022/jse/isse/AVL/YE2022AVL.pdf. The knowledge on this
announcement has been extracted from the reviewed condensed consolidated monetary outcomes, however
the short-form announcement itself has not been reviewed by the Firm’s auditors. Any
funding choices by shareholders/buyers needs to be primarily based on the complete announcement launched
to the JSE and printed on the Firm’s web site.
The reviewed condensed consolidated monetary statements have been reviewed by the Group’s
Auditors, Mazars who’ve issued an unmodified overview opinion with an emphasis of matter included
for materials uncertainty of Going Concern (refer above). The overview opinion is out there for inspection
on the Firm’s registered workplace and on the Firm’s web site http://www.advancedhealth.co.za/
CORPORATE INFORMATION
Superior Well being Restricted Registered Deal with:
(Included within the Republic of South Africa) Constructing 2, Walker Creek Workplace Park
Registration quantity: 2013/059246/06 90 Florence Ribeiro Avenue
ISIN: ZAE000189049 JSE Code: AVL Muckleneuk
0002
Postnet Suite 668, Personal Bag X1
The Willows, 0041
Government administrators Non-Government Administrators
GJ van Emmenis (Chief Government Officer) CA Grillenberger (Chairman)
MC Resnik# (Managing Director Australia) FA van Hoogstraten (Lead Unbiased)
D Goss-Ross (Managing Director South Africa) PJ Jaffe #
S Chonco (Chief Monetary Officer) CJPG van Zyl
Dr WT Mthembu
YJ Visser
Dr KE Legodi
# Australian
Firm Secretary: M Janse van Rensburg
Auditors: Mazars
Switch Secretaries: JSE Investor Providers
Date of announcement: Eight September 2022
Designated Advisor
Grindrod Financial institution Restricted
Date: 08-09-2022 04:30:00
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