Download the full annual report ⟶
Overview
The Integrated Report represents the financial results and the economic, environmental, social and governance performance of RH Bophelo. RH Bophelo’s Board of Directors, are key to realising RH Bophelo’s commitment to generate and sustain shareholder wealth and value over the short, medium, and long term.
Healthcare Investments
We are committed to delivering quality and value in every aspect of our work. Through our investments, we dedicate ourselves to providing high-quality care to patients within all our facilities.
In just three years, RH Bophelo has successfully deployed (including in-process) most of the initial R500-million it raised on listing and has made a number of notable acquisitions since its inception and JSE listing. This portfolio represents approximately 90% of the Group’s total investments, which include a total of 1696 beds, of which 511 are owned, and 1185 are managed by AHC and PBHPM across eight South African provinces
Our healthcare portfolio includes Africa Health Care Proprietary Limited, Medicare Private Hospital, Rondebosch Medical Centre, Vryburg Private Hospital, RH Bell Clinic, RH Fauchard Day Clinic and Phelang Bonolo Healthcare Procurement and Management Proprietary Limited.
Financial Services Investments
This portfolio represents approximately 10% of the capital invested. It mainly consists of investments in a short-term insurance company, as well as an Underwriting Management Agency (UMA) in healthcare insurance.
Our financial services portfolio includes Wesmart Financial and Administration Solutions Proprietary Limited (Wesmart) and Genric Insurance Company Limited (Genric). In South Africa, only 20% is currently insured, thereby leaving the rest of the population to rely on public healthcare. Our investment in this segment is aimed at the employed but not insured.
Our Strategy
RH Bophelo is on a mission to invest in affordable healthcare opportunities through capital allocation in innovation, affordable infrastructure and insurance products. By upholding our commitment to good governance, our goal is to become the most dynamic and multifaceted investment company of choice for all in Africa.
The strategy is built on three (3) main pillars, which are as follows:
1. Hospital infrastructure network and management contracts
2. Healthcare funds
3. Healthcare access and insurance
RH Bophelo is building an ecosystem of networked investments focused on the healthcare, healthcare information technology, pharmaceutical distribution and financial services sectors. This investment network includes infrastructure and related access products that target growth in the lower and middle-income earners and working uninsured. Creating a successful healthcare investment ecosystem relies on investing in innovative access products and building on strategic partnerships to leverage growth.
Download Section 1: Business Overview ⟶
Performance and Future Outlook
The 2020/2021 year was an unusual one. The initial performance was both strong and steady as the medical aid funds were robust. When South Africa lifted its “lockdown” restrictions late last year, a big part of the economic activities returned to normal, resulting in improved performance across the healthcare sector.
Over the past year, we have increased our investments in two strategic assets – Genric Insurance Company and Rondebosch Medical Centre – we have also taken the first steps towards diversifying our footprint across the continent. On 1 June 2020, we finalised our listing on the Rwanda Stock Exchange, which we regard as an important window into the fast-growing African private healthcare market.
Download Section 2: Performance and Future Outlook ⟶
Corporate Governance Overview
The Board’s pivotal role is to create value through its strategy, implement policies, ensure capital prudence, and oversee the Group’s governance frameworks. The Board has ensured that its arrangements for delegation within its structures promote independent judgement and assist with the balance of power and the effective discharge of its duties.
The Board has established the following committees; Audit and Risk, Investment, Remuneration and Nominations and Social and Ethics. The Board committees within its structures perform their advisory and oversight function independently to deliver on their duties effectively.
RH Bophelo is committed to maintaining the highest standards of governance, ethics and integrity. Together, with the Remuneration and Nominations Committee (RNC), the Board reviewed the skills and experience of its composition with emphasis on creating a diverse, efficient and transparent functional Board.
Download Section 3: Corporate Governance Overview ⟶
Annual Financial Statements
Over the last year, the financial effects were multidimensional, as expected for all businesses in the healthcare sector. RH Bophelo’ s portfolio of assets – particularly those including properties – exhibited trends in occupancy and utilisation rates that mirrored the healthcare sector at large. As a business designated as an essential service, however, the financial impact of the lockdowns on our business was within the range of outcomes that the Board considers reasonable in light of the times we live in.
The Board has undertaken a detailed review of the going concern capability of the Company with reference to certain assumptions and plans underlying various internal cash flow forecasts. The Board has not identified any events or conditions that individually or collectively cast significant doubt on the ability of the Company to continue as a going concern. To this end, the going concern assumption has been determined to be the appropriate basis for financial reporting as of 28 February 2021.
Download Section 4: Annual Financial Statements⟶
Shareholders’ Information
Notice is hereby given that the Annual General Meeting of shareholders of RH Bophelo Limited will be hosted remotely and we will use the platform Microsoft Teams on Monday, 2 August 2021 at 10h00 (the AGM). RH Bophelo will be assisted by Computershare Investor Services Proprietary Limited (the Company’s Transfer Secretaries) who will also act as scrutineers.
