By Millie Turner
Hospital operator Mediclinic has voiced concern over its ability to stave of price hikes as it undergoes a billion-pound takeover.
The London-listed company, which was bought by a South African consortium for £3.7bn in August, said increasing economic uncertainty, rising inflation and the risk of further Covid-19 disruption is weighing on margins.
“Increasing macro-economic uncertainty, inflationary pressures and the risk of further Covid-19 and related disruptions to staffing and scheduling, will likely impact the previously anticipated sequential increase in patient activity in Switzerland and Middle East, and limit the group’s ability to fully offset incremental cost increases in the two divisions,” the company said in a statement today.
Mediclinic’s operating profit has sunk eight per cent to £119m, down from £129m, in the past six months.
Though the group appears to be holding the fort in terms of revenue, which slowed marginally in comparison with the first half of the year.
Revenue climbed 10 per cent in the six-month period to £1.73bn, slightly less than the 12 per cent growth recorded in the first half of the year.
The group added that its takeover by the consortium led by the investment firm Remgro – which already holds a 45 per cent stake in the firm – is still awaiting regulatory approvals.
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