MDC
MDC
Medi-Clinic - Trading Statement
Medi-Clinic Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1983/010725/06)
JSE share code: MDC
ISIN: ZAE000074142
("Medi-Clinic" or "the Company")
TRADING STATEMENT
The operational performance of Medi-Clinic for the year ended 31 March 2006 is
consistent with historical performance and is not the subject of this trading
statement.
Shareholders are referred to the circular to shareholders dated 1 November 2005
("the circular") presenting details of the black ownership initiative and the
capital restructuring ("the transactions") announced on 4 October 2005 ("the
announcement"). The effect of the transactions on the earnings per share
("EPS") and headline earnings per share ("HEPS") of the Company was fully
disclosed in the circular.
The South African Institute of Chartered Accountants ("SAICA") has finalised
both the exposure drafts mentioned in the announcement and the circular, which
deals with the accounting for Black Economic Empowerment transactions under
International Financial Reporting Standard 2 - Share Based Payments ("IFRS 2").
SAICA issued IFRIC 8(AC 441)- Scope of IFRS 2 and AC 503 - Accounting for Black
Economic Empowerment (BEE) Transactions. Based on this, IFRS 2 has become
applicable to the entire black ownership initiative. The application of IFRIC 8
(AC 441) and AC 503 has an effect on the earnings for the year ended 31 March
2006 of a once-off charge to the income statement of Medi-Clinic in the amount
of R85 million, with a corresponding increase in equity (a separate reserve).
Shareholders are, accordingly, advised that the EPS and HEPS will be between 40%
and 50% lower than the corresponding reporting period of the previous year,
respectively, mainly as a result of the financial and accounting effect of the
transactions and the BEE charge referred to above.
Core EPS will exclude the once off effect of the STC payable on the special
dividend, which formed part of the capital restructuring, as well as the BEE
charge referred to above. Core EPS will be between 0% and 10% higher than the
corresponding reporting period of the previous year. This figure will include
the higher interest charges as a result of the capital restructuring.
The financial information on which this trading statement is based has not been
reviewed nor reported on by the Company"s external auditors.
Stellenbosch
19 April 2006
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 19/04/2006 02:38:03 PM Produced by the JSE SENS Department
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