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Healthcare

BRIEF-Mediclinic Says Covenant Test Waivers Agreed, Suspends Dividend

April 17 (Reuters) - Mediclinic International PLC:

* 2020 FULL-YEAR TRADING UPDATE

* GROUP FY20 TRADING BROADLY IN LINE WITH EXPECTATIONS

* STRONG FINANCIAL POSITION AND LIQUIDITY ENTERING PANDEMIC

* COVENANT TEST WAIVERS AGREED IN RESPECT OF MATERIAL BORROWINGS ACROSS ALL THREE DIVISIONS UP TO AND INCLUDING MARCH 2021

* TAKEN DECISIONS TO PRESERVE LIQUIDITY INCLUDING SUSPENDING ALL NON-ESSENTIAL CAPITAL EXPENDITURE AND GROUP DIVIDEND

* EXECUTIVE DIRECTORS’ ANNUAL SALARY INCREASES AND SHORT-TERM INCENTIVES HAVE ALSO BEEN SUSPENDED

* DEBT COVENANT TEST WAIVERS AGREED IN ALL DIVISIONS

* IN CONSTANT CURRENCY, FY20 REVENUE WAS UP AROUND 4.0% (FY19: GBP2 932M) AND PRE-IFRS16 EBITDA DOWN AROUND 3.5% (FY19 PRE-IFRS16: GBP493M)

* ON REPORTED BASIS, FY20 REVENUE WAS UP AROUND 5.5% AND PRE-IFRS16 EBITDA WAS DOWN AROUND 2.5% (FY19 PRE-IFRS16: GBP493M)

* FY PRE-IFRS16 EARNINGS PER SHARE IS EXPECTED TO BE AROUND 25 PENCE (FY19 PRE-IFRS16: 26.9 PENCE)

* NO MATERIAL NEAR-TERM DEBT MATURITIES WITH NEXT BEING AT HIRSLANDEN WHERE A CHF145M SWISS BOND IS DUE IN FEBRUARY 2021

* SUSPENSION OF NON-URGENT ELECTIVE SURGERY IS LIKELY TO HAVE A SIGNIFICANT IMPACT ON FINANCIAL PERFORMANCE FOR YEAR ENDING 31 MARCH 2021

* PERFORMANCE IN LINE TILL MID-MARCH WHEN IMPACT MATERIALISED FROM LOCKDOWNS, ASSOCIATED ACTIONS SUSPENDING NON-URGENT ELECTIVE SURGERY

* IN LINE WITH GLOBAL TREND, MOST NON-ESSENTIAL ELECTIVE PROCEDURES AND OUTPATIENT ACTIVITIES HAVE BEEN POSTPONED Source text for Eikon: Further company coverage:

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