Summary of RH Bophelo’s Integrated Annual Report 2019

Download RH Bophelo’s 2019 Annual Report

Business Overview

RH Bophelo listed on the JSE in July 2017. At the time of our listing, we managed to raise over R500 million in funds; this enabled us to access the initial capital required to start operating and open our doors to the general public so that they can acquire shares in a fully Black-owned and entirely African healthcare company. RH Bophelo’s directors and management team possess significant experience in the healthcare sector and are well-positioned in the market to implement the Company’s strategy and vision. At RH Bophelo, our mission is to position health as an investment; to this end, we have developed a three-year strategic framework that is geared towards increasing access to quality healthcare services, while also creating an ecosystem designed to optimise synergies that deliver value to South Africans in the lower to middle-income brackets. Our investment policy is based on the acquisition of existing and operational healthcare infrastructure. And our mandate is to identify other opportunities along the value chain.

Performance and Future Outlook

In our two years of operation, we have achieved more than we had expected, and we are confident that there are greater avenues that lie ahead for the company. As noted by our chairman, John Oliphant, “In the current financial year, the team has continued to grow our infrastructure portfolio by increasing the number of beds from zero at listing to eight hundred and fifty-five (855) as of 30 May 2019, building our platform into one with a national footprint. The progress we have made over the past two years has shown us that we are in a great position to grow our investment portfolio, and offer value to our shareholders and make manifest our vision of making affordable quality healthcare accessible to all South Africans. As articulated by RH Bophelo’s CEO, “We have established partnerships that are designed to enhance both our operations and cement ourselves as the go-to entity with respect to the building of partnerships intended to support emerging hospital groups and managers as well as assisting in the transformation of the South African healthcare landscape.” A key highlight for our CFO, Dion Mhlaba, has been the company’s exponential growth. Dion predicts that “In 2019/20 financial year, the company’s portfolio would have materially increased.”

Acquisitions in our investment portfolio:

Infrastructure Acquisitions

Africa Health Care (AHC). Learn more →
- Owned:
  - St Helena Private Hospital in Welkom, Free State
  - Fountain Private Hospital in Carletonville, Gauteng
  - Fochville Private Hospital in Carletonville, Gauteng
- Managed:
  - Kiaat Private Hospital in Nelspruit, Mpumalanga
  - Rand Mutual Assurance Care Centre (RMA) 120 in Welkom, Free State
Vryburg Private Hospital (VPH) in Vryburg, Northwest. Learn more →
Rondebosch Medical Centre (RMC) in Mowbray, Cape Town. Learn more →
RH Fauchard Hospital (RH Fauchard) in Krugersdorp, Gauteng. Learn more →
Medicare Private Hospital (Medicare) in Rustenburg, North West. Learn more →
RH Bell Hospital (RH Bell) in Krugersdorp, Gauteng. Learn more →

Financial Services Acquisitions

Wesmart Financial and Administration Solutions (Wesmart). Learn more →
Africa and Worldwide Medical Assistance Service Proprietary Limited (Africa Assist). Learn more →

RH Bophelo investment portfolio map:

Corporate Governance Overview

Our governance structure includes our shareholders, a board of directors, three committees, namely: audit and risk; social and ethics; remuneration and nomination; and an investment committee. An executive committee is also included in our governance structure; this committee is responsible for RH Bophelo’s Management and Operating companies. RH Bophelo has a diverse board that comprises members that are committed to working towards achieving the company’s mission and strategic objectives. Our board is responsible for selecting members for our various committees, and it determines and amends the scope of the responsibilities of the committees.

Annual Financial Statements

RH Bophelo has gone to great lengths to ensure that we provide you with accurate reporting and documentation of our annual financial statements. The directors are responsible for the preparation, integrity and fair presentation of the annual financial statements of RH Bophelo Limited. The financial statements are prepared in accordance with the IFRS, the South African Institute of Chartered Accountants (SAICA) Financial Reporting Guides as issued by the Accounting Practices Committee, the Financial Reporting Pronouncements as issued by Financial Reporting Standards Council and the requirements of the Companies Act, 71 of 2008. The directors have made certain that the information contained in the financial statements fairly present the results of operations for the year and the financial position of the Company at the end of the financial year.

Shareholders Information

RH Bophelo shareholders convene annually, with the next AGM scheduled to take place at the company’s registered office, 3rd floor, 18 Melrose Boulevard, Melrose Arch, Johannesburg, on Friday, 2 August 2019 at 12h00. At the top of the AGM’s agenda will be a presentation of the company’s audited annual financial statements, including the reports of the directors, the audit and risk committee, and the auditors for the year ended 28 February 2019. Other items of discussion will include:

the resignation, retirement, re-election of directors;
the appointment and re-appointment of the members of the audit and risk committee of the company;
the reappointment of the auditor;
the non-binding endorsement of RH Bophelo’s remuneration policy;
unissued shares under the directors’ control;
the general authority to issue shares for cash;
the remuneration of non-executive directors;
inter-company financial assistance; and
the implementation of resolutions.