Overview
This Integrated Annual Report incorporates the Chairman’s Report by Samson Moraba, the Chief Executive Officer’s Report by Quinton Zunga, the Chief Financial Officer’s Report by Yondie Metu CA(SA) and the Chief Investment Officer’s Report by Colin Wayne Clarke. It also covers the risks, opportunities, and outcomes associated with the strategy, business model, and stakeholder engagements and how we respond to the risks, challenges, and opportunities. The report contains vital information concerning our strategic direction, strategic decisions, and operational performance for the financial year ending 29 February 2024.
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Highlights
The Chairman’s Report by Samson Moraba
“I am pleased to announce a strategic shift in our investment approach at RH Bophelo, marking an exciting chapter in our journey towards greater efficiency and profitability.” – Samson Moraba (Chairperson)
After careful consideration and thorough analysis, we have made the strategic decision to transition from an asset-heavy investment strategy focused solely on hospital infrastructure to an asset-light business model and strategy. This new approach will see us directing our investments towards value-added services, which traditionally were operated independently, now within hospitals.
The Chief Executive Officer’s Report by Quinton Zunga
“I am pleased to announce that despite market fluctuations and challenges, we have achieved substantial investment gains, underscoring the resilience and effectiveness of our investment strategies. Our investments generated net gains of R244 million in the current year, representing an improvement from the net investment losses of R56 million in the previous year.” – Quinton Zunga (Chief Executive Officer)
The robust improvement in net investment gains and proactive cost management resulted in a net profit of R183 million, compared to a net loss of R32 million in 2023. In light of these improvements, the Board declared the second dividend in our history of R20 million, which reflected our commitment to delivering value to our shareholders and acknowledging their trust and confidence in RH Bophelo.
Chief Financial Officer’s Report by Yondie Metu CA(SA)
“Our value proposition harmonises financial growth, economic stability and social responsibility to deliver comprehensive value to all our stakeholders.” – Yondie Metu (Chief Financial Officer)
Key financial indicators headliners FY24
- R244m Investment gains/losses for the year
- 19% Change in NAV for the year
- R20m Dividend paid in December 2023
- 282.3c Earnings per share – basic, diluted and headline
- R183m Net profit for the year
Stability and growth
The 2023/24 financial year represented a period of stabilisation and growth for RH Bophelo. Our concerted efforts focused on optimising our existing asset portfolio while strategically seeking new investment opportunities in the healthcare value chain that align with our business objectives and adopting the asset-light strategy. I am thrilled to report that these initiatives have borne fruit, with the Company achieving a net asset value exceeding R1 billion, representing a 19% growth. Throughout the year, we made significant strides in enhancing the profitability of critical assets such as Africa Health Care and Rondebosch Medical Centre. This was achieved by implementing cost-saving measures and leveraging our technological resources to improve patient interactions and support systems for our staff. Together with the new asset-light strategy, the Company achieved a net profit of R183 million versus a loss of R32 million in the prior year.
The Chief Investment Officer’s Report by Colin Wayne Clarke: Leveraging an Asset-Light Strategy to Enhance Hospital Returns
“Our focus has always been on generating returns for our investors while building a best-in-class African Healthcare Investment Holding Company.” – Colin Wayne Clarke (Chief Investment Officer)
In today’s dynamic healthcare landscape, strategic innovation is imperative to sustain and enhance the value proposition of hospital assets. This report delineates a comprehensive plan to integrate value enhancing assets that were previously managed by independent practitioners into our hospital network. By adopting an asset-light strategy, we aim to optimise existing hospital assets, augment profitability, and bolster our healthcare ecosystem’s attractiveness. Central to this strategy is the integration of pharmacy distribution, radiology, pathology, dialysis, and hospital management services.
Historically, hospitals have focused on core services, often overlooking ancillary services managed by independent entities. However, market trends underscore the potential synergy and value creation opportunities in integrating these ancillary services with hospital assets. Our asset-light strategy aims to capitalise on these opportunities by consolidating and enhancing services, thereby driving revenue growth, improving operational efficiency, and strengthening our competitive positioning.
