| - PROCESS GAS SOLUTIONS |
| - INDUSTRIAL AND SPECIAL PRODUCTS |
| - BOC EDWARDS |
| - AFROX HOSPITALS |
| - GIST |
| Afrox hospitals | 2004 £ million |
Change on previous year |
Change on previous year1 |
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| Turnover | 432.1 | +22% | +9% |
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| Operating profit | 59.8 | +30% | +16% |
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| Adjusted operating profit2 | 59.8 | +30% | +16% |
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| 1. At constant currency. 2. Adjusted operating profit excludes exceptional items. |
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Afrox hospitals
In contrast with recent years, new acquisitions contributed little to Afrox hospitals' increased turnover. We increased our shareholding in Wilgeheuwel hospital during the year and had a small benefit from annualised acquisitions made last year while also disposing of three less productive units. The largest impact on turnover came from well managed changes to the pricing regime first introduced in 2003. In response to legislation and discussions with medical insurance agencies the business has negotiated daily charges and increasingly uses a risk-sharing model for medical and surgical interventions. Adjusted operating profit benefited as increased turnover was managed with no addition to the overhead structure.
Afrox hospitals has a management contract supporting the UK's national health service in two projects at Bassetlaw and Ilkeston. Some 40 South African doctors and nurses enjoy short-term career development in the UK while their pensions and medical aid programmes are maintained in South Africa for when they return after their secondment. Every year Afrox hospitals trains some 700 nurses and the programme in the UK offers an attractive alternative to the permanent loss of qualified staff overseas.
For most of the year the business has been subject to an agreed acquisition by a group led by two major black economic empowerment investment groups in South Africa. This process has been extended by the competition authorities. In the meantime the business continues to perform well.
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