Health and wellness investment holding company Ascendis Health increased its net asset value (NAV) by 12% year-on-year to R660-million for the six months ended December 31. The higher NAV was driven by organic growth.

Following the successful turnaround of the company over the past two years, Ascendis is focusing on effective capital allocation decisions with possible strategic acquisitions and attractive disposals all being considered.

The group plans to capitalise on the strong momentum created by the team by introducing new business lines.

With a strong focus on positive cash flow, minimal debt and efficient working capital management, Ascendis is well-positioned to deliver a strong set of full-year financial results, says Ascendis Health CEO Carl Neethling.

The interim results are particularly significant given that, not long ago, the group was insolvent and trading at a market capitalisation of less than R370-million, he notes.

Further, interventions that focus on cash flow, cost efficiencies and careful debt management will continue.

The Medical portfolio of Ascendis, which includes The Scientific Group, Surgical Innovations, InterV Med, Cardio Tech and Ortho Xact, grew by 16.5% to R252-million in the six months.

The growth in performance is especially impressive considering the increasing problem of delayed government payments.

Despite this, the Medical portfolio is expecting further growth in the second half as new services and products are introduced, and its client-base is increased through new partnerships, says Neethling.

Further, its Consumer portfolio, which experienced subdued consumer demand in the six months, is already seeing an improved performance after the team successfully reconfigured the operational structure.

Owing to subdued consumer spending, the portfolio grew by 1% in the six months, but the acquisition of a weight-loss-focused brand and the relaunch of multiple lines are set to boost this division in the second half of the financial year.

This portfolio includes Ascendis Consumer Brands, Chempure and The Compounding Pharmacy of South Africa.

“Looking ahead, we are confident that the team is well-placed to keep advancing, and new product offerings, territory gains and key talent acquisitions, among others, will keep us moving forward.

“Further, fund manager ACN Capital has been appointed and will provide strategic guidance, sophisticated capital allocation and adept execution of financial projects, thereby further strengthening our prospects for long-term success,” said Neethling.