| Wed 17 Nov 2004, 8:40 | | RESULTS FOR THE YEAR ENDED |
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NETWORK HEALTHCARE HOLDINGS LIMITED - AUDITED GROUP RESULTS FOR THE YEAR ENDED
30 SEPTEMBER 2004
NETWORK HEALTHCARE HOLDINGS LIMITED
Registration number 1996/008242/06)
(Incorporated in the Republic of South Africa)
(JSE share code: NTC)
(ISIN code: ZAE000011953)
(`Netcare` or `the Company`)
AUDITED GROUP RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2004
* Total revenue up 14,0%
* Cash generated from operating activities up 25,5%
* Capital distribution increased by 26,7%
* Diluted HEPS up 12,2% (before abnormal items up 17,8%)
* Netpartner HMO model on track
* Netcare Healthcare UK positioned well for future growth
* Meaningful transformation initiatives
* Strengthened executive team
Please note that certain prior year adjustments and non-recurring abnormal items
relating to 2003 and 2004 respectively have been included, which are more full
explained in this report.
GROUP BALANCE SHEET
Audited Audited
30 Sept Restated
2004 30 Sept2003
(Rm) (Rm)
Assets
Non-current assets 3 831,2 3 830,4
Property, plant and equipment 2 880,0 2 704,0
Goodwill and development expenditure 227,2 169,6
Associated companies, investments 681,3 488,6
and loans
Deferred taxation asset 42,7 41,5
Other financial assets - 426,7
Current assets 1 665,2 1 946,7
Inventories 241,6 344,8
Accounts receivable 1 278,1 1 159,9
Cash and cash equivalents 145,5 442,0
Total assets 5 496,4 5 777,1
Equity and liabilities
Capital and reserves 2 904,6 3 039,2
Share capital and premium 860,8 1 044,9
Treasury shares (865,3) (143,2)
Reserves 2 834,9 2 065,7
Ordinary shareholders` equity 2 830,4 2 967,4
Minority interest 74,2 71,8
Non-current liabilities 1 039,7 1 189,6
Interest bearing debt 792,5 921,5
Deferred taxation liability 247,2 268,1
Current liabilities 1 552,1 1 548,3
Accounts payable and provisions 935,3 974,0
Short-term interest bearing debt 559,6 419,9
Taxation payable 57,2 154,4
Total equity and liabilities 5 496,4 5 777,1
Net equity per share (cents) 198,5 193,9
GROUP INCOME STATEMENT
Audited
Audited Restated
30 Sept 30 Sept2003
2004 (Rm) %
(Rm) Change
Revenue 6 852,5 6 012,6 14,0
Operating profit before depreciation 1 247,3 1 150,2 8,4
and amortisation
Depreciation and amortisation (214,8) (192,5)
Operating profit before abnormal 1 032,5 957,7 7,8
items
Abnormal items (56,6) -
Operating profit 975,9 957,7
Net finance charges (119,1) (192,7)
Profit before taxation 856,8 765,0 12,0
Taxation (219,1) (173,9)
Profit after taxation 637,7 591,1
Attributable earnings of associates 24,7 0,4
Profit after taxation including 662,4 591,5
associates
Minority interests (2,4) (1,1)
Attributable earnings 660,0 590,4 11,8
Earnings reconciliation
Attributable earnings 660,0 590,4
Goodwill amortised 10,7 6,9
Capital loss on discontinued 9,0 -
operations
Profit on disposal of investment - (8,8)
Headline earnings 679,7 588,5 15,5
Earnings per share (cents)
Headline - basic 45,9 41,2 11,4
- diluted 44,1 39,3 12,2
Attributable - basic 44,6 41,3 8,0
- diluted 42,8 39,5 8,4
Note: Abnormal items consist of
non-recurring charges relating to:
- Traumanet (Netcare 911) (26,9)
restructuring costs, cancellation of
forex-linked contracts and
discontinuance of loss-making units
and products
- Closure of Middle Eastern (22,7)
Operations
- Legal expenses incurred on Single (7,0)
Exit Pricing regulations
Total (56,6)
SUPPLEMENTARY INFORMATION
Audited
Audited Restated
30 Sept 30 Sept
2004 2003 %
(Rm) (Rm) Change
Headline earnings - after abnormal 679,7 588,5 15,5
items
Abnormal items - net of taxation 33,3 -
Headline earnings - before abnormal 713,0 588,5 21,2
items
Headline earnings per share before
abnormal items (cents)
- basic 48,2 41,2 17,0
- diluted 46,3 39,3 17,8
STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY
Audited
Share Non- Audited Restated
Capital Distribu- Distri- 30 Sept 30 Sept
& Treasury table butable 2004 2003
Premium shares Reserves Reserves (Rm) (Rm)
Ordinary 1 044,9 (143,2) 164,2 1 901,5 2 967,4 2 187,7
shareholders`
equity at
beginning of
year
Prior year (52,1)
adjustments
Adjustment to 46,1
opening
balances on
adoption of
AC 133
Attributable 660,0 660,0 590,4
earnings
Issue of 61,5 61,5 315,6
shares
Share buy- (236,8) (236,8) (79,8)
backs
Fair value 71,3 71,3 118,6
surplus on
available for
sale
investments
(net of tax)
Treasury (485,3) (485,3)
shares on
unwinding of
Netcare Trust
financial
asset
Capital (245,6) (245,6) (183,1)
distributions
Currency (4,7) 42,6 37,9 24,0
translation
reserves &
other
movements
Ordinary 860,8 (865,3) 230,8 2 604,1 2 830,4 2 967,4
shareholders`
equity at end
of year
ABRIDGED GROUP CASH FLOW STATEMENT
Audited Audited
30 Sept Restated
2004 30 Sept
(Rm) 2003
(Rm)
Cash generated from operations 1 190,7 1 128,8
Working capital movements (88,1) (250,0)
Cash generated from operating activities 1 102,6 878,8
Net finance charges (119,1) (192,7)
Taxation paid (357,6) (153,6)
Cash inflow from operating activities 625,9 532,5
Capital distributions paid (245,6) (183,1)
Net cash retained 380,3 349,4
Cash utilised in investing activities (543,3) (680,9)
Capital expenditure (362,3) (425,1)
Net investment in businesses and loans to (181,0) (255,8)
businesses
Cash effects of financing activities (128,4) 639,3
Movement in interest bearing liabilities 10,7 378,7
Share buy-backs (236,8) (79,8)
Net equity movements 97,7 340,4
(Decrease)/increase in cash and cash (291,4) 307,8
equivalents
Cash and cash equivalents at beginning of 442,0 210,6
year
Net cash resources assumed on acquisition (5,1) (76,4)
of businesses
Cash and cash equivalents at end of year 145,5 442,0
KEY FINANCIAL INFORMATION
Audited
Audited Restated
30 Sept 30 Sept
2003 2004
(Rm) (Rm)
Ordinary shares (millions)
In issue 1 425,8 1 530,7
Weighted average number of shares 1 479,7 1 428,8
Diluted weighted average number of shares 1 540,4 1 496,5
Distributions
Capital distributions (cents per share) 19,0 15,0
Other salient features
EBITDA margin before abnormal items (%) 18,2 19,1
EBIT margin before abnormal items (%) 15,1 15,9
Interest cover (times) 8,2 5,0
Effective taxation rate (%) 25,0 22,8
Operating profit return on net assets (%) 25,1 27,8
Return on ordinary shareholders` equity (%) 23,4 22,8
Debt/equity ratio (%) 41,5 29,6
Capital commitments (Rm) 388,3 185,4
Contingent liabilities (Rm) 372,8 153,0
INTRODUCTION
The 2004 financial year has undoubtedly been very challenging for the private
healthcare industry in general and the Netcare Group in particular.
From an operational perspective, however, Netcare is pleased to report that
despite a number of obstacles, the Group has recorded consistent growth, solid
cash generation and sound progress on our strategy to create value for
stakeholders.
Prior year results have been adjusted in terms of AC 133 (Financial Instruments
- Recognition and Measurement), AC 103 (Accounting Policies, Changes in
accounting estimates and errors) and AC 116 (Employee Benefits) and include
adjustments in respect of accounting for interest income on financial assets,
leave pay and supplier rebates. The effect of these changes is set out in the
Financial Review below.
Apart from the Group`s core business of providing comprehensive healthcare
services, the more significant focus areas for 2004 included the following:
Strategic* Implementation of the Group`s challenge to the regulations relating
to the Medicines and Related Substances Act (`the regulations`);
* Closure of selected non-performing business units;
* Strategic interventions to restore Netcare 911 to profitability during 2005;
* Implementation of international expansion plans;
* Resolution of the Netcare Trust;
* Broadening of Netpartner network to facilitate accessible, affordable quality
healthcare;
* Strengthening the Netcare Board, executive team and committee structures in
line with best practice guidelines and for the next phase of growth; and
* Active progress on Black Economic Empowerment transformation.
Operational
* Successful renegotiation of hospital tariffs;
* Review of processes, policies, procedures and feasibility of all business
units;
* Continued investment in leading-edge technology to ensure best clinical
outcomes;
* Identification, development and submission of PPP proposals;
* Attainment of highest patient satisfaction ratings;
* Continued drive to maintain Netcare`s rating as an employer of choice; and
* Extension of physician advisory boards and formation of a Medical Ethics
committee.
The key strategic and operational areas for 2005 include the following:
Strategic
* Resolution of the impasse with Government regarding regulatory interventions
and the healthcare environment;
* Implementation of BEE and transformation programmes and support of existing
BEE partners;
* Expansion of international division;
* Expansion of diagnostic services;
* Extend mining joint ventures and occupational health; and
* Integrate IT platform with patient medical records.
Operational
* Enhancement and monitoring of ethical standards and clinical outcomes;
* Netpartner:
* Pilot Health Maintenance Organisation (`HMO`) model with medical aid
schemes;
* Listing on the JSE Alternative Exchange;
* Develop operational capacity;
* Launch of Clinical Trials business;
* Continue growth of patient days;
* 1 000 new beds under management by 2006;
* Restoration of Netcare 911 to break even;
* Develop wholesale pharmacy business;
* Review capital structure; and
* Recognise, grow and build the Group`s people.
The Group continues to embrace its four leadership strategies of:
* BEST & SAFEST PATIENT CARE;
* PHYSICIAN PARTNERSHIPS;
* OPERATIONAL EFFICIENCY; and
* GROWING WITH PASSIONATE PEOPLE
in creating sustainable shareholder value while focusing the minds and efforts
of its more than 18 800 members of staff to add meaningfully to the lives of
patients, medical practitioners and stakeholders each and every day. FINANCIAL
REVIEWThe financial performance for the period should be reviewed taking the
following factors into account:
Non-recurring items
* Netcare 911 recorded a once off charge of R26,9 million due to restructuring
costs, cancellation of forex-linked contracts and the discontinuation of loss
making business units and products;
* The issue of 100 million Netcare shares to, and investment in, Netpartner on
30 September 2003 has had the predictable short-term dilutive effect on headline
earnings per share of approximately 3% for the period;
* Due to the volatility experienced in the politically sensitive Middle East, a
strategic decision was made to discontinue all operations and related operations
in that region. The Group has written off an amount of R22,7 million relating to
development expenditure, closure costs and retrenchments in this period; and
* Due to the introduction of the regulations relating to single exit pricing
applicable to pharmaceuticals that were implemented on 2 May 2004, the Group has
been impacted negatively by a higher cost of drug purchases for the period from
the release of the draft regulations up until the court ruling, which was
followed by successful renegotiation of hospital tariffs with the medical aid
funders.
Prior year adjustmentsThe effect of the prior year adjustments referred to above
on the 2003 income statement is a reduction in attributable earnings of R66,7
million and a reduction in the tax charge of R28,6 million. Attributable
earnings per share decreased from 44,6 cents to 41,3 cents per share while
headline earnings per share decreased from 46,0 cents to 41,2 cents. The effect
on the 2003 balance sheet is a reduction in inventories of R31,7 million, an
increase in accounts payable and provisions of R102,9 million and a decrease in
the provision for tax payable of R40,4 million. Accordingly, the 3,0% decrease
in net assets for 2003 amounted to R94,2 million.
Operating resultsGroup revenue for the year increased by 14,0% to R6 852,5
million (2003: R6 012,6 million), comprising mainly organic growth. Revenue
growth in the core hospital business and other businesses amounted to 12,3% and
19,5% respectively.
A pro-forma analysis of revenue and EBITDA (before abnormal items) of certain of
the larger business units of Netcare is set out below:
Revenue EBITDA
30 Sept 30 Sept 30 Sept 30 Sept
2004 2003 % 2004 2003 %
Hospitals 5 195,1 4 625,1 12,3 1 072,2 1 011,0 6,1
Other businesses 1 657,4 1 387,5 19,5 175,1 139,2 25,8
Medicross 637,2 569,3 11,9 69,4 63,9 8,6
Netcare 351,6 324,5 8,4 86,8 67,7 28,2
Diagnostics
Traumanet 249,8 219,3 13,9 (34,1) (32,2) (5,9)
(Netcare 911)
International 126,9 59,1 114,7 10,3 6,2 66,1
Other 291,9 215,3 35,6 42,7 33,6 27,1
Total 6 852,5 6 012,6 14,0 1 247,3 1 150,2 8,4
Overall EBITDA margins (before abnormal items), declined to 18,2% (2003: 19,1%),
with the decline driven primarily due to the period-specific effect of the
regulations and the absorption of increased costs in a low inflation
environment.
Basic headline EPS (before abnormal items) grew by 17,0% to 48,2 cents (2003:
41,2 cents), with disclosed basic headline EPS growth amounting to 11,4%.
Diluted headline EPS (before abnormal items) grew by 17,8% to 46,3 cents (2003:
39,3 cents), with disclosed diluted headline EPS growth amounting to 12,2%.
Meaningful Cash GenerationThe traditionally solid Group cash generation was once
again evidenced by a 25,5% increase in cash generated by operating activities.
Cash inflows were applied substantially towards higher tax payments of R357,6
million (2003: R153,6 million), share repurchases of R236,8 million (2003: R79,8
million), capital expenditure of R362,3 million (2003: R425,1 million) and other
investments and loans of R181,0 million (2003: R255,8 million). Despite these
factors, as well as the significant equity impact of the treasury shares, the
debt:equity ratio remained at a comfortable 41,5% (2003: 29,6%). Interest
charges reduced to R119,1 million (2003: R192,7 million) reflecting, inter alia,
the reduced interest rate environment and effective treasury management.
Interest cover improved to 8,2 times (2003: 5,0 times).
Significant Corporate Financial TransactionsThe more significant financial
transactions during the year included:
* The resolution of the Netcare Trust (Shareholders are referred to the SENS
announcement dated 29 April 2004); and
* The aggregate general repurchase of 51,4 million Netcare shares during the
course of the year for a total consideration of R236,8 million;
Changes in DirectorateMr SR Favish (Group Chief Financial Officer) and Dr C
Rossolimos (Executive Director - Netcare International) resigned from the Board
of Directors on 2 August 2004 and 30 September 2004 respectively. Mr PG Nelson
was appointed as Group Chief Financial Officer on 1 September 2004.
Shareholders are also referred to the SENS announcement dated 16 November 2004
for further information relating to changes to the Netcare Board of Directors.
Accounting Policies and JSE Securities Exchange RequirementsThe financial
statements comply with South African Statements of Generally Accepted Accounting
Practice. The principal accounting policies as set out in the 2003 Annual Report
have been consistently applied.
This announcement has been prepared in accordance with the listing requirements
of the JSE Securities Exchange South Africa.
Audit ReportThe joint auditors, Fisher Hoffman PKF (Jhb) Inc. and Grant
Thornton, have issued their opinion on the Group`s financial statements for the
year ended 30 September 2004. A copy of their unqualified report is available
for inspection at the Company`s registered office.OPERATIONAL REVIEWImpact of
new regulations on business units:The implementation of Section 18A of Act 101
(1965) on 2 May 2004, which prohibits any form of rebates or discounts on
ethical products, adversely affected the Group`s profitability and operating
margins. This affected the hospital division for the duration of the court
challenge to the regulations, during which time this division was obliged to
charge `blue book` prices against a higher cost of purchases.
In addition, the retail pharmacy components of the Group were also negatively
impacted, and in this regard, the Board would welcome resolution with the
pricing committee by negotiating a more appropriate dispensing fee in the near
future.
CORE HOSPITAL NETWORK
* The core hospital division continued to gain market share in the year under
review. This was evidenced by an increase in patient admissions and patient days
by 4,8% and 1,4% respectively.
* EBITDA margins declined to 20,6% (2003: 21,9%) which is representative of the
following:
* Impact of the implementation of the pharmacy regulations referred to under
`Operational Review`;
* Increased costs in a low inflation environment; and
* Reduction in per diem billing following price reviews relating to the
anticipated changes in regulations.
* Although capital expenditure declined to R362,3 million (2003: R425,1
million), the Group continued to expand and upgrade facilities within the
hospital network, the benefits of which are likely to be visible as the
facilities become fully operational. In addition, the net increase of 116
medical specialists joining the organisation over the period bears testimony to
Netcare`s focus of being doctor-centric with its key leadership strategy of
building lasting physician partnerships.
* The hospital division continues to contribute the majority of the Group`s
revenue and EBITDA (before abnormal items) being 75,8% (2003: 76,9%) and 86,0%
(2003: 87,9%) respectively. Netcare intends to focus investment and expansion
strategies both locally and abroad with the aim of increasing contributions from
other `non-hospital` healthcare businesses.
SUPPLY CHAINTraumanet (Netcare 911)In the Group`s results announcement and
annual report for the year ended 30 September 2003, shareholders were advised of
the stringent remedial actions implemented to restore the feasibility of the
Traumanet business model. Traumanet`s new management have responded to the
challenge and Netcare 911 is confidently on track with its recovery. The
majority of subscribers to Netcare 911 have renewed membership for 2005.
While Traumanet financial performance continues to be impacted by the provision
of emergency services to indigent patients, several alternatives are being
explored to manage this offering more effectively.
The Vodacom/Netcare business partnership, that has provided life saving
emergency medical services to many South Africans has significantly expanded its
strategic alliance with the recent announcement of joint initiatives that will
benefit both organisations as well as include meaningful corporate and social
responsibility projects.
In addition, during the period Netcare 911 and the AA (Automobile Association of
South Africa) formed a strategic alliance in which the AA will be handling all
of Netcare 911`s roadside assistance, home assistance, tax and legal helpline
services for clients that have purchased these value added services and the AA
would make use of Netcare 911`s emergency services.
Netcare International The Group`s British subsidiary, Netcare Healthcare UK, has
made meaningful strides in negotiating and initiating two significant National
Health Service (`NHS`) contracts relating to the provision of medical services
over a five-year period. The first contract, which commenced in February 2004,
is to provide over 44 500 cataract procedures, with the second contract being to
provide almost 45 000 general, orthopaedic and ENT surgical procedures, and is
due to begin in January 2005. These contracts have an aggregate revenue value
estimated at GBP114 million.
The Group`s growing reputation as a quality provider of healthcare both locally
and abroad, has provoked the interest of several European Health departments for
similar outsourcing projects as a result of which further opportunities are
being considered within the United Kingdom and several countries in central and
eastern Europe.
The intended investment in Hospitais Privados de Portugal S.G.P.S. is at the
final stages of negotiation following the completion of a comprehensive due
diligence.
Netpartner - Developing the HMO model Since Netpartner`s launch during the last
quarter of 2003, Netpartner has made substantial progress in developing its
business model by:
* Increasing the number of medical professionals associated with Netpartner to
more than 10 000;
* Establishing its portfolio of strategic investments in healthcare and
healthcare-related enterprises; and
* Forming Netcare Direct Managed Care (Proprietary) Limited (`Netdirect`), a
managed care company which has facilitated the assembly of a national network
promoting and providing managed care products.
Given the future strategic benefits of HMO-type structures within the South
African healthcare environment and the compelling transformation ideologies
embraced by both Netpartner and Netcare, an agreement has been entered into
between Netpartner and the South African Medical and Dental Practitioners
Association (`SAMDP`), which has been more fully explained in the Sens
announcement dated 15 November 2004. This initiative is seen as an imperative in
ensuring meaningful transformation in the private healthcare industry and
aligning the interests of Netcare, Netpartner and the SAMDP to bring better care
to more people of South Africa.
From a managed care perspective, Netdirect has concluded contracts with the
Discovery Health, Liberty, Momentum and Eclipse Medical Schemes, all of which
will become operational in January 2005.
Other healthcare investmentsThe businesses of, inter alia, National Renal Care,
SAA Netcare Travel Clinics and the pharmacies forming part of Community Hospital
Group, all performed satisfactorily over the period given the status of the
healthcare environment.ADMINISTRATION, LOGISTICAL AND SUPPORT SERVICESNetcare`s
core competency in providing administrative, logistical and support services to
a range of healthcare providers is evidenced by the performance of some of the
Group`s ancillary business units reflected below.
Medicross
Medicross has again presented a sound performance by generating an 11,9%
increase in revenue to R637,2 million (2003: R569,3 million) and an 8,6%
increase in EBITDA to R69,4 million (2003: R63,9 million). The lower EBITDA
margin experienced arose primarily as result of the changes in the regulations.
Patient visits grew by 7,8% to almost 3 million for the period, with dispensed
prescriptions rising by 8,8%. The use of generics has increased to over 44,0%
during the period.
The most encouraging indicator relating to Medicross managed operations is the
5,3% decline in the average cost per script versus the prior period, which is
the lowest in the industry.
Netcare DiagnosticsThe activity and efficiencies experienced by the diagnostics
and imaging administration and management businesses falling within Netcare
Diagnostics, has resulted in EBITDA increasing by 28,2% to R86,8 million (2003:
R67,7 million). Market share gains are evidenced by an increase in patient
visits by over 2% as against the comparable prior period.
New healthcare management initiativeGiven the success resulting from Netcare`s
focused leadership strategies, the previously announced business initiative with
Harmony Gold Mining Company Limited (`Healthshare`) is seen by the Group as an
important platform for further expansion to other industry players who can
extract meaningful value by outsourcing their non-core healthcare services.
EMBRACING TRANSFORMATION AND CORPORATE AND SOCIAL RESPONSIBILITY
Netcare has invested significant time and effort in establishing and developing
initiatives to foster meaningful transformation in the private healthcare
industry. These initiatives include:
* The appointment of Dr VLJ Litlhakanyane and Prof. MB Kistnasamy to the Board
of Directors of Netcare with effect from 1 December 2004, as well as other high
level appointments to the Boards of various Netcare subsidiaries and associates;
* The investment and support for Community Healthcare Holdings Limited (one of
the largest black-owned healthcare enterprises in South Africa);
* The financial and management support for the largest hospital clinical
services PPP with the Free State Health Department;
* The Group`s policy of treating patients covered under the Road Accident Fund;
* A contribution of more than R63 million towards nursing training over the
year;
* A variety of corporate and social responsibility initiatives, including the
significant contribution by Netcare 911 of emergency services to indigent
patients, totalling more than R65 million; and
* The issue of share options to staff, the majority comprising previously
disadvantaged individuals.GROWING WITH PASSIONATE PEOPLEThe year`s regulatory
and industry challenges have unfortunately created uncertainty and insecurity.
The Board would like to extend its sincere appreciation to staff and doctors
whose united efforts and dedication have continued to deliver outstanding
patient care.PROSPECTSThe flexibility of the Group`s business model,
comprehensive operational resources and strengthened leadership team, will
enable Netcare to pursue various sector opportunities both locally and abroad in
building stakeholder value into the future.
The new Netpartner HMO model (`the Model`) has the potential to introduce
alternative re-imbursive models and attract uninsured lives by offering greater
access, simplicity and broader benefits at more affordable prices. The Model
will be offered to closed schemes, specific industries (e.g. mining) and the
proposed Statemed scheme.
The mutually beneficial resolution of issues between the Public and Private
healthcare sectors, as well as meaningful transformation initiatives, bodes well
for an improved outlook for all South African`s requiring quality healthcare.
The Board is confident that given the aforementioned, as well as the reduced
weighted average number of shares in issue and the opportunity to reverse the
Traumanet losses and non-recurring abnormal items experienced in the 2004 year,
the prospects are favourable for above average growth in 2005.
Internationally, given the Group`s developing track record with the NHS, and
other opportunities in markets where the private sector can provide healthcare
solutions, the target is to cautiously contract and invest so as to increase the
revenue contribution of the International division to more than 20% within a
period of approximately 3 years.
Accordingly, in the absence of any unforeseen circumstances in the South African
and global economies or healthcare regulatory environment, it is considered that
the Group`s business model is well-balanced, sound and on track to continue
during the current financial year to generate meaningful returns and growth for
all stakeholders.DECLARATION OF CAPITAL DISTRIBUTION NO. 11In accordance with
the authority given to the directors by way of an ordinary resolution passed on
23 January 2004, the Board of Directors declared on Monday, 15 November 2004 a
final capital distribution (No. 11) out of share premium of 11,5 cents per
share, payable on Monday 14 February 2005, to shareholders recorded in the
register of the Company as at Friday, 11 February 2005. Taken together with the
interim distribution of 7,5 cents per share, the total distribution paid and to
be paid in respect of the 2004 financial year amounts to 19,0 cents (2003: 15,0
cents) per ordinary share, an increase of 26,7% over the prior period.
The increased distribution has been based on the growth in HEPS before abnormal
non-recurring items and the Board`s decision to reduce the dividend cover to 2,5
times, subject to revision depending on market conditions and investment and
share buy-back opportunities.
In accordance with the requirements of STRATE, the following dates are
applicable:
Last date to trade `cum` the cash
distribution (`LDT`) Friday, 4 February 2005
Date trading commences `ex`
the cash
distribution Monday, 7 February 2005
Record date Friday, 11 February 2005
Date of payment Monday, 14 February 2005
Share certificates may not be dematerialised nor rematerialised between Monday,
7 February 2005 and Friday, 11 February 2005, both dates inclusive.By order of
the BoardMichael I Sacks Dr Jack
ShevelChairman Chief Executive OfficerSandton
15 November 2004REGISTERED OFFICE
76 Maude Street, Sandton 2196. Private Bag X34, Benmore 2010
TRANSFER SECRETARIES
Ultra Registrars (Pty) Limited, 11 Diagonal Street, Johannesburg 2001. PO Box
4844, Johannesburg 2000.
EXECUTIVE DIRECTORS
MI Sacks (Chairman), Dr J Shevel (Chief Executive Officer, Dr RH Friedland
(Chief Operating Officer) PG Nelson (Chief Financial Officer), Dr RH Bush, IM
Davis, Dr I Kadish, PJ Lindeque, N Weltman
NON-EXECUTIVE DIRECTORS
Dr APH Jammine, JM Kahn, HR Levin, Dr JA van Rooyen
COMPANY SECRETARY
J Wolpert
for more information please visit Netcare`s website at: www.netcare.co.za
