Afrox Healthcare Limited - Flemming Upbeat Regarding Afrox Healthcare`s Future
Afrox Healthcare Limited
(Incorporated in the Republic of
South Africa)
(Registration number: 1985/001313/06)
Share code: AHH
ISIN: ZAE000022059
(`Ahealth`)
PRESS RELEASE
24 FEBRUARY 2005
FLEMMING UPBEAT REGARDING AFROX HEALTHCARE`S FUTURE
Michael Flemming, chief executive of Afrox Healthcare, has reason to be upbeat
about the future. During five years of excellent compound annual growth in
revenues and profits, Afrox Healthcare garnered the 2004 Sustainable Growth
Award and was also placed first in the award for Sustainable Growth over five
years. These awards recognise listed companies that have made a significant
contribution to growing the South African economy and creating shareholder
value.
Speaking at the annual general meeting of Afrox Healthcare, Flemming said,
`While it is pleasing to receive these accolades we have no intention of resting
on our laurels. Projects that will lay the foundation for future growth include
construction of a new R174 million hospital in Fourways with completion due in
early 2006. The hospital will accommodate 194 beds and ten theatres,` he said.
`The company`s total investment in building initiatives and equipment upgrades
during last year amounted to R242 million.`
`Future expansion will also come from our joint venture in the United Kingdom
successfully launched with London listed Care UK, and providing orthopaedic
services to the National Health Services (NHS),` said Flemming. `We have two
small units in operation at existing NHS hospitals in the Nottingham area that
accommodate NHS waiting list orthopaedic patients, while our two large units are
under construction and due for completion this year. Early indications are that
these contracts spanning a five-year period and offering guaranteed patient
volumes will prove to be successful for all parties.`
Flemming says that the company is also intent on providing affordable healthcare
to self-employed people and low-income earners. `We already have some public
private partnerships in place and would like to partner the government in
providing appropriate services to those who have no access to private care, but
discussions in this regard have been protracted,` he said.
In 2004, the company launched the most comprehensive quality programme to date
in the private hospital industry. The equivalent of 40 000 working days was
spent on quality training in all Afrox Healthcare units countrywide to ensure
continued professional excellence and quality patient care.
`This quality initiative extended to every facet of the business from our
relationships with doctors, to patient care and technology excellence,
operational efficiencies and cost containment,` said Flemming.
Referring to the sale of Afrox Healthcare, Flemming said this had been a
protracted process. Medi-Clinic has withdrawn from the sale and Afrox has
replaced Medi-Clinic as a shareholder in a transaction that will see Afrox
invest R375 million in Bidco (comprising a BEE consortium that includes
Brimstone Investment Corporation Ltd and Mvelaphanda Strategic Investments (Pty)
Ltd). The sale is still subject to approval by the Competition Tribunal.
Flemming said, `Afrox Healthcare has moved into new corporate offices in Illovo
in December. Having a BEE partner will afford us a new impetus and a
significant advantage in remaining competitive in the South African healthcare
context. With our BEE partners, we are eager to launch our new brand and
image.`
Ends
Issued by Afrox Healthcare Limited
Contact Ros Beart (011) 490 0712 or
Chris Fieldgate (011) 490 0430
Sponsor
Nedbank Capital
Date: 24/02/2005 02:30:06 PM
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