Netcare to spend R1.4bn in capex in coming year

CHIEF executive Dr Richard Friedland says Netcare has managed its cost base despite the sluggish economy. Nokuthula Mbatha African News Agency (ANA)
JOHANNESBURG – Private hospital group Netcare is to spend R1.4billion in capital expenditure during the 2020 financial year as part of its ongoing expansion programme.

The group said the funds would be spent on finalising the expansion of the Milpark and St Augustine’s hospitals, construction of the replacement 427-bed Netcare Alberton, a new 36-bed Akeso facility in Richards Bay, and a new 72-bed Akeso facility in Port Elizabeth.

The group said the expansion would continue despite muted patient-day growth of 0.8percent, and 1.2percent projected for the next financial year, with the first half negatively influenced by the 2019 hospital network arrangements.

It said these would impact performance in first quarter of 2020.

In the results for the year to the end of September, Netcare reported a 4.2percent increase in revenue from continuing operations to R21.59bn, while normalised earnings before interest, tax, depreciation and amortisation (Ebitda) increased 4.3percent to R4.39bn.

Source: iol.co.za