Life Healthcare CEO on H1 results & COVID-19 impact on business
Life Healthcare has scrapped its interim dividend to preserve cash and warned of tough trading conditions due to the impact of the coronavirus pandemic on its business operations. The private hospital group expects a more than 20 per cent drop in earnings per share for its year ending September results, due to less hospital admissions during the outbreak and supply disruptions that have increased operational costs. Adam Pyle, CEO, Life Healthcare Group South Africa joins CNBC Africa for more.
Mon, 11 May 2020 15:39:18 GMT
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AI Generated Summary
- Life Healthcare scraps interim dividend to preserve cash amidst tough trading conditions caused by the pandemic
- Company cautiously optimistic about future activities, anticipates a more than 20 per cent drop in earnings
- Balanced approach advocated for the reopening of the economy, emphasis on staff retention and prioritizing safety measures
Life Healthcare, a private hospital group, has recently announced the decision to scrap its interim dividend in order to preserve cash amidst the challenges posed by the ongoing coronavirus pandemic. CEO Adam Pyle shared insights on the tough trading conditions the company is facing, anticipating a more than 20 per cent drop in earnings per share for the year ending September. The impact of the outbreak has resulted in fewer hospital admissions and supply disruptions, leading to increased operational costs. Pyle mentioned that the company's Southern African business is cautiously optimistic, projecting April as the trough in terms of activity levels. As the country transitions from a level five to level four lockdown, there has been a noticeable increase in medically necessary cases being treated, signaling a potential uptick in activities moving forward. However, Pyle acknowledged that concerns around the pandemic have led some individuals to postpone elective surgeries and medical visits, contributing to the challenges faced by the healthcare industry. In light of the debate surrounding the reopening of the economy, Pyle emphasized the need for a balanced approach, advocating for a gradual resumption of economic activities with the ability to adjust measures as needed. While acknowledging the financial strain on businesses, he expressed optimism in the company's ability to generate cash and potentially resume dividend payments in the future. Despite the economic challenges, Life Healthcare has prioritized the well-being of its staff, opting to defer bonuses rather than implement salary cuts or layoffs. With a focus on retaining essential healthcare workers, particularly nurses, the company aims to navigate through the uncertainties brought forth by the current climate.