The JSE and finance forum for South Africa
General Category => Shares => Topic started by: jaDEB on April 09, 2014, 07:36:01 am
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IPO
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http://www.moneyweb.co.za/moneyweb-south-africa/day-hospital-firm-opens-initial-public-offer
Currently, AVL has two day hospitals in South Africa and three in Australia. In South Africa, it owns the Medgate Day Clinic in Roodepoort and the eMalahleni Day Hospital in Witbank.
It has obtained a license to develop a day hospital in Soweto and is in discussion with a number of groups who have obtained licenses to build hospitals but do not have the funding to develop facilities.
In addition to three day hospitals already established in Australia, it is developing a flagship five-theatre day hospital in Sydney.
Between 80% to 90% of AVL’s profits currently come from its Australia businesses. Its established facilities base generated combined profits of R7.73 million for the year ended June 30 2013 (2012: R5.8 million).
Alongside growth through greenfield developments, acquisitions and partnerships, AVL plans to grow through a focused drive to market the advantages of day hospitals to healthcare practitioners, funders and patients.
“More than 60% of all surgical interventions can be done at day hospitals, which can save in the region of 35% of the costs involved for both funders and patients,” Grillenberger said at a pre-listing presentation in Johannesburg last week.
“In South Africa, vested interests and preconceived misconceptions have been hampering the development of day hospitals to their full potential in terms of the cost savings and patient convenience the day hospitals offer,” he added.
“AVL management believes this is set to change, following the announcement by medical scheme Discovery Health to pay surgeons an incentive if they treat patients in a day hospital. We expect other medical schemes to follow Discovery’s example in order to reduce the disproportionate increase in private hospital costs.”
Still not sure I know what a day hospital is though. Are you not allowed to stay overnight? Then they also mention a 5 day hospital, what's the difference between that and a regular hospital?
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Yes, they were on Radio last night. Discovery said that their hospital bills used to be 12% now it is more like 40%. Day hospital is where they do operations that can be done in 1 day. U book in the morning and leave by end of day. Thus no overheads for kitchen, staff is not required for 24hrs and so on. Also he indicated that your hopital is smaller.
Correction
As a percentage of total medical scheme spend, hospital costs rose from 24% in 1990 (R1.26 billion) to 37% in 2010 (R28.3 billion), according to the Council for Medical Scheme (CMS). This is expected to reach 40% in 2015.
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According to an abridged prospectus, the company has made an offer of up to 80m ordinary shares at R1 each.
The offer is subject to a minimum subscription of R30m (or 30m shares), in order to meet the condition for listing to raise R50m, as set by the Alt-X advisory committee of the JSE.
This is also to achieve the spread requirements that the public holds at least 10% of the shares and there are at least 100 public shareholders.
Eenhede Konsultante (Pty) Limited, a company controlled by the founder and CEO of the AVL group of companies, Carl Grillenberger (70), holds the remaining R20m stake and is the controlling shareholder.
Interested investors will have to apply for at least 5 000 ordinary shares (at a cost of R5 000) upfront, and in multiples of 100 ordinary shares thereafter. Fractions of shares will not be issued.
The IPO closes at noon on April 17 and the listing of the shares on the JSE Alt-X counter is scheduled for April 25.
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flagship five-theatre day hospital in Sydney - I think he means a Day hospital with 5 theatres, not 5 days.
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http://www.advancedhealth.co.za/uploads/advanced_health_prospectus.pdf
150 Pages - :wall: :whistle:
Spoke to some1 before taking my tablets. Put reminder on date of listing. Will see what happens.
The offer comprises an offer to the public to subscribe for 80 000 000 ordinary Shares
at 100 cents per share.
Applications must be for a minimum of 5 000 Shares and in multiples of 100
thereafter.
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flagship five-theatre day hospital in Sydney - I think he means a Day hospital with 5 theatres, not 5 days.
Ah yes, quite right, my speed reading needs more work. I don't hold anything in the alt-x exchange, does it work just like the regular exchange?
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Is this worth a punt, profits seem low?
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As far as I know Alt X works same, except there is more risk, to conform to requirements is less on Alt X than JSE.
Is this worth a punt, profits seem low? - That is why I am here, trying to get info. will keep an eye on it when it gets listed.
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It should do well, as they seem to have discovery backing them to some extent as discovery is trying to move more procedures into this category, to save of hospital costs. That's what he was saying on the radio yesterday, so might be worth a punt. Not sure if the price of R1 per share is worth it though, as i have not looked at their financials yet, anyone care to comment on that??
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"It should do well, as they seem to have discovery backing them" - that is good and bad, imagine Discovery does not , or backs a different horse.
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well, it makes sense for discovery to back them, as it helps discovery with cost reduction. Maybe they have a signed contract with discovery to provide care at a certain rate, which would then indicate that discovery is fairly serious about this??
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Any1 invested in this 1?
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Yep - I am.
The PE is currently on the high side but long term potential is there. Seems to have the makings of a "Curro" sort of operation and consequently will take a while before dividends are forthcoming. I also find the Australian rand hedge aspect attractive.
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Thanks for reply appreciate it....
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P/E Ratio 43.86
Release Date: 24/02/2015
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX
MONTHS ENDED 31 DECEMBER 2014
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
Six months Six months Year ended
31-Dec-14 31-Dec-13 30-June-14
R’000 R’000 R’000
Current assets 158 961 49 759 164 997
Cash and cash equivalents 141 154 40 239 143 883
Total assets 258 317 100 486 247 535
Total equity and liabilities 258 317 100 486 247 535
Net asset value per share (cents) 92.31 55.62 89.00
Net tangible asset value per share (cents) 76.19 55.25 80.30
Revenue 92 721 74 677 155 791
Gross profit 50 755 37 588 84 348
Earnings per share (cents) 2.33 4.17 6.44
Diluted earnings per share (cents) 2.33 4.17 6.44
Notes to the statement of comprehensive income
Headline earnings for the period attributable to ordinary
shareholders:
Headline earnings per share (cents) 2.33 4.17 6.44
Diluted headline earnings per share (cents) 2.33 4.17 6.44
- Total number of shares in issue(‘000) 221 843 90 467 211 615
- Weighted average number of shares (‘000) 221 615 90 467 120 272
- Diluted weighted average number of shares (‘000) 221 843 90 467 120 273
Reconciliation of headline earnings calculation:
Earnings for the period attributable to ordinary 5 174 3 776 7 740
shareholders
Headline earnings for the period attributable to ordinary
5 174 3 776 7 740
shareholders
Cash and cash equivalents at end of year 141 154 40 239 143 883
REVENUE
SOUTH AFRICA 13 001 - 7 259
External revenue 13 001 - 7 259
AUSTRALIA 79 720 74 677 148 532
External revenue 79 720 74 677 148 532
During the period under review the company entered into an agreement to develop five day hospitals, one in Gauteng and four in the Western Cape. Construction has commenced on some of these day clinics. The acquisition consideration was settled through the issue of 10 000 000 new shares at an issue price of R1.70 per share.
In Australia, construction of the largest ophthalmic day hospital in the country has commenced. The
six-theatre facility is scheduled for completion towards the end of 2015.
Sundry negotiations with different role players within the day hospital environment are ongoing
and, if successful, will provide Presmed Australia with an improved coverage of specialised day
hospitals in the greater Sydney area. The above initiatives will add further growth opportunities for
the Australian subsidiaries.
The South African activities were focussed mainly on transactions to develop additional day
hospitals, which will be achieved through negotiations with like-minded partners, as outlined in the
pre-listing prospectus.
Management is confident that, by the end of June 2016, the South African subsidiary will be in
control of at least nine day hospitals compared to the current two operational units.
Projects in the pipeline for South Africa include:
- Advanced Durbanville Surgical Centre (under construction, operational Q3 2015);
- Advanced Panorama Surgical Centre (under construction, operational Q1 2016);
- Advanced Soweto Day Hospital (under construction, operational Q1 2016);
- Advanced Knysna Surgical Centre (construction Q1 2015, operational Q1 2016);
- Advanced Waterkloof Somerset Surgical Centre (construction Q1 2015, operational Q1 2016);
- Advanced Worcester Surgical Centre (construction Q1 2015, operational Q1 2016)
- Advanced Groenkloof Surgical Centre (construction Q4 2015, operational Q1 2016)
It should be noted that the R100 million cash raised in conjunction with the listing is held for future
developments which will only start generating income for the group in the next financial year.
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Trading statement
ADVANCED HEALTH LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2013/059246/06)
(“the Company” or “Advanced Health”)
ISIN Code: ZAE000189049 JSE Code: AVL
TRADING STATEMENT
In terms of paragraph 3.4(b)(i) of the Listings Requirements of the Johannesburg Stock Exchange,
listed companies are required to publish a trading statement as soon as they become reasonably
certain that the financial results for the next period to be reported on will be more than 20%
different from those of the previous corresponding period or from a profit forecast previously
provided to the market in relation to such period.
Shareholders are advised that Advanced Health expects to report that net profit after taxation
attributable to the parent, as per the financial results for the year ended 30 June 2015, has
increased to R15.854 million compared to R7.470 million for the year ended 30 June 2014. The
prospectus issued by the company on 31 March 2014 showed a profit forecast of R14.111 million.
However due to the increased number of shares in issue pursuant to the listing, the earnings per
share will be 7.15 cents for the year ended 30 June 2015 compared to earnings per share of 6.44
cents for the year ended 30 June 2014, representing an increase of 11.02%. The forecast earnings
was 6.71 cents per share, representing an increase of 6.56%.
Headline earnings for the year will be R7.232 million compared to the prior year of R7.740 and the
forecast of R14.111 million. Accordingly, the headline earnings per share will be 3.26 cents for the
year ended 30 June 2015 compared to headline earnings per share of 6.44 cents for the year
ended 30 June 2014, being a decline of 49.38%. The forecast headline earnings was 6.71 cents per
share, representing a decrease of 51.41%.
The reasons for headline earnings being lower than anticipated are as follows:
- The impact of the strengthening of the rand against the Australian dollar, with
approximately 87% of the group’s revenue coming from the Australian operations with an
average exchange rate of R9.55 to the Australian Dollar. The number of patients and
revenue per patient was slightly ahead of the profit forecast. However, the forecast
assumed an exchange rate of R10.82 to the Australian Dollar.
- Higher costs being absorbed with the development of new clinics in both South Africa and
Australia.
- The weighted average number of shares increased to 221 614 801 shares from 120 272 415
shares in the prior year. The increase in the weighted average number of shares for the
year ended 30 June 2015 is a result of the shares being weighted for the entire year as well
as the issue of new shares for the acquisition of five companies where day clinics are being
developed.
The financial information on which this trading statement is based has not been reviewed and
reported on by the company’s auditors.
The company’s results announcement for the year ended 30 June 2015 is expected to be
published on or about 1 September 2015.
27 August 2015
Johannesburg
Designated Advisor
Arbor Capital Sponsors Proprietary Limited
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Does any1 know why this one is getting hammered ?
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Trading statement of the 1st June?
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Look OK ? and it also started tankin before statement. I had it and sold it ...... thinking, thinking ???
INITIAL TRADING STATEMENT
In terms of paragraph 3.4(b)(i) of the Listings Requirements of the Johannesburg Stock Exchange, listed
companies are required to publish a trading statement as soon as they become reasonably certain that the
financial results for the next period to be reported on will differ by more than 20% from those of the
previous corresponding period.
Shareholders are advised that Advanced Health expects to report that earnings and headline earnings per
share for the year ending 30 June 2016, attributable to the parent, will reflect a loss position, although the
total comprehensive income is expected to show a gain due to favourable foreign exchange differences.
The main reason for this movement is due to the Company rolling out its strategy to become the leading
provider of day hospitals in South Africa and Australia, with 9 new day hospitals in various stages of
completion in South Africa and the opening of its new flagship 6 theatre day clinic in Chatswood Sydney,
Australia in January 2016.
As is the nature of the roll out of day hospitals, the initial building development of the hospital takes up to
18 months, depending on circumstances for the completion of the construction and the commissioning
process. These hospitals will then require a settling-in period of up to 36 months before the envisaged
financial advantages fully materialise. In South Africa, the company has already developed and opened 5
new day hospitals as follows:
- Durbanville - operational since August 2015;
- Panorama - operational from January 2016;
- Groenkloof - operational since February 2016;
- Worcester – operational from April 2016; and
- Soweto – operational from May 2016.
Other day hospitals are in various stages of construction or negotiation. This has the impact of the group
carrying substantial costs whilst the operations are established. The company is however starting to see a
significant increase in turnover and number of cases in both South Africa and Australia compared to the
prior comparative period.
Accordingly the earnings and headline earnings per share for the year ending 30 June 2016 is expected to
be a loss and more than 100% lower than the earnings per share of 7.89 cents and headline earnings per
share of 4.00 cents for the comparative year ended 30 June 2015. A further trading update will be provided
at a later stage when more certainty is obtained in terms of the range and numbers.
The financial information on which this trading statement is based has not been reviewed and reported on
by the company’s auditors.
1 June 2016
Johannesburg
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As someone who has no idea what anything here means, prospects for the company sound good...
....New hospitals
....Discovery in partnership
....alot of sick people
....poor healthcare(not much out there at the moment RE: Day hospitals)
BUt why on earth is the share price been diving like a deep sea diver :LHST:? why is the PE so high? what is PE? how does this affect anything?
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....New hospitals - Yes
....Discovery in partnership - Kinda Yes
....alot of sick people - Yes, but if u do not have money, you do not have money
....poor healthcare(not much out there at the moment RE: Day hospitals) - they are building in RSA and Australia
PE : -
The price earnings ratio, often called the P/E ratio or price to earnings ratio, is a market prospect ratio that calculates the market value of a stock relative to its earnings by comparing the market price per share by the earnings per share
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It might be that the new figures are not in line with the prospectus issues on listing (I'm too lazy right now to check).
IIRC ... AVL was always a long term play.
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It might be that the new figures are not in line with the prospectus issues on listing (I'm too lazy right now to check).
IIRC ... AVL was always a long term play.
Agree - long term play