While the shift towards increasing private sector volumes has strengthened our revenue mix, we are increasingly concerned about what this signal indicates. As more patients turn to higher-cost private facilities while public hospitals struggle, a significant number of people — especially those with limited means — are being excluded from essential healthcare access.

This trend raises serious equity concerns and highlights the urgent need for more inclusive solutions. On the cost front, BECS was implemented last year, initially incurring transitional costs that have now decreased. As the system became more established, overall expenses fell by 3.3%, mainly due to reduced staff costs. This reflects our broader effort to stabilise operations and enhance cost efficiency in a more volatile and resource-constrained environment.

Efficiency and service excellence remain central to our operations. Our approach combines sound financial stewardship with a clear focus on delivering value to those we serve. By staying true to these priorities, we are equipped to meet emerging challenges while strengthening our standing as a reliable and respected healthcare provider.

Other income increased by R4.5m, related to the profit made on the disposal of assets. Net interest income rose from R181.6 million to R197.6 million, driven by higher average cash balances and improved investment performance. While interest rates have begun to ease, our portfolio continued to deliver strong returns, reflecting disciplined capital management and strategic allocation.

Net working capital, excluding investment and cash, increased to R833.0m as at 31 March 2025, up from R718.6m on 31 March 2024. The increase in adjusted net working capital from 2024 to 2025 was mainly due to higher trade receivables and inventories, as the company ordered more stock to reduce supply chain risks. Current liabilities rose slightly, widening the gap between assets and obligations. This reflects a strategic focus on operational resilience and liquidity.

Between 2024 and 2025, the company shifted funds from cash into investments, which increased from R1.61 billion to R2.01 billion. This change was driven by higher operational surpluses but also by lower capital expenditures than expected—a development that, while freeing up cash, indicates delays in planned growth initiatives. The decrease in cash from R738.7 million to R588 million suggests that available liquidity was actively deployed, with a greater focus on building the investment base rather than expanding operational capacity.