Commentary

The Group continued to grow during the half year ending 31 March 2011 with continued expansion of its facilities and supported by the acquisition of the Life Bay View Hospital in Mossel Bay in June 2010, increasing Group revenue by 12,7% to R4 718 million (2010: R 4 186 million). Increased demand for hospital services together with preferred network arrangements supplying additional volumes resulted in paid patient days (PPD’s) increasing by 6,4%. This contributed to an improved occupancy of 69,5% (2010: 68,2%). The increase in activity and a higher revenue per PPD resulted in hospital division revenue increasing by 13,9%. Healthcare Services revenues declined marginally due to reduced volumes in the Life Esidimeni business as result of the completion of two contracts. This was offset by the increase in value of contracts obtained in Life Occupational Health.

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