Bloomberg News

Netcare to Post Loss After U.K. Property Accounting Adjustments

November 16, 2012

Netcare Ltd. (NTC), an owner of private hospitals in South Africa and Britain, said it will post an annual net loss, after making non-cash accounting adjustments on its U.K. property unit.

Per-share earnings “will be between 360 percent and 370 percent lower” in the year through September than a year earlier, the company said in a stock exchange filing today. Per- share earnings excluding one-time profits and losses will fall 10 percent to 20 percent, it said. Netcare earned 1.17 rand (13.14 U.S. cents) per share on that basis in fiscal 2011.

Netcare acquired General Healthcare Group’s 35 U.K. hospital properties in 2006 and its debt facility is due to mature in October next year, making the accounting adjustment necessary, the Johannesburg-based company said. While the unit is seeking refinancing, this will not be in place by the time Netcare’s annual results are released on Nov. 19.

Adverse financial developments at the property unit have “no commercial effect on the financial status of Netcare,” because all U.K. debt is ring-fenced and there is no recourse to its South African operations, the company said. “None of Netcare’s existing debt facilities will be impacted by the changes in accounting assumptions” at the property unit.

Netcare’s shares advanced 1 percent, to 17.92 rand as of 11:46 a.m. in Johannesburg, giving the company a market value of 26.2 billion rand.

To contact the reporter on this story: Mike Cohen in Cape Town at mcohen21@bloomberg.net;

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net


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