Advanced Health has begun selling some of its assets.
Floundering day hospital Advanced Health is one step closer to disposing of its South African facilities after receiving a R170 million offer from an interested buyer.
The group’s COO, Bibi Goss-Ross said on Friday that she could not disclose the details of the buyer as the group was still conducting the due diligence and pricing process. Advanced has 11 faclities in South Africa and four in Austrialia and has begun disposing of four of the local facilities, the R170 million offer is on the remaining seven. The sales form part of the company’s restructuring process.
The group, whose market capitalisation is just over R51 million, has been struggling to grow South Africa’s day hospital industry after listing on the JSE in 2014. Instead of the expansion it was looking for, Advanced has struggled to gain the trust of the public feels safer recovering in a hospital, rather than their homes and getting buy in from doctors.
Over the past five years, the share price of the Pretoria headquartered company declined by more than 89% and it has since embarked on a restructuring process to ensure that it stays afloat.
On Friday, results for the year ended June 2020, the group said its revenue had dropped from R481.7 million in 2019 to R474.2 million. It’s loss for 2020 increased to R133.8 million from R38 million in 2019. Advanced also lost R24.4 million in revenue, due to the Covid-19 pandemic, as patients postponed surgeries during the lockdown out of fear of catching the virus.
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