9. DIRECTORS' REPORT
RAMSAY HEALTH CARE LIMITED
During the year, the principal activity of the Group was to own and operate hospitals and health care services in approximately 460 locations
across Australia and globally. There were no significant changes in the nature of the Company’s activities during the year.
State of affairs
Other than as referred to in the OFR, there have been no significant changes in the Group’s state of affairs during the year.
Likely developments and expected results
Likely developments in the operations of the Group and the expected results of those operations are set out in the OFR in Section 5 on pages
11 to 23 of this Annual Report and is incorporated into, and forms part of, this Directors’ Report.
Matters subsequent to the end of the financial year
On 26 May 2021, Ramsay announced that it had reached agreement with the board of Spire Healthcare Group PLC (Spire) on the terms of a
recommended cash offer to acquire the entire issued and to be issued share capital of Spire, by way of a scheme of arrangement under part
26 of the UK Companies Act 2006 (Scheme). The Court Meeting and General Meeting at which Spire shareholders voted on resolutions to
approve and implement the Scheme were held on the 19 July 2021. As the requisite majority of votes required to pass all of the resolutions
were not achieved, the proposed acquisition will not proceed. As a result, the amounts held in escrow of $1,958.1 million (Refer Note 16.a) at
30 June 2021, in relation to this business combination were released and subsequently used to pay down loans and borrowings of the Group.
There have been no other significant events after the reporting date that may significantly affect the Group’s operations in future years, the
results of these operations in future years or the Group’s state of affairs in future years.
Dividends paid or recommended for payment on ordinary shares are as follows:
• Final dividend recommended @ 103.0 per share (2020: 0.0 cents1). Total of $235.7 million (2020: $0.0 million1).
• Interim dividend paid during the year @ 48.5 cents per share (2020: 62.5 cents). Total of $106.2 million (2020: $126.3 million).
Dividends paid or recommended for payment on CARES are as follows:
• Final dividend recommended @ $1.74 per security (2020: $1.77). Total of $4.5 million (2020: $4.6 million).
• Interim dividend paid during the year @ $1.73 per security (2020: $2.04). Total of $4.5 million(2020: $5.3 million).
The tax rate at which dividends have been franked and recommended dividends will be franked is 30% (2020: 30%).
The Group holds licences from the Environment Protection Regulatory Bodies applicable to hospitals for the maintenance of a safe
environment. The Directors are not aware of any breaches of these licences.
Ernst & Young received or are due to receive $2,753,006 for the provision of non-audit services. Refer to Note 21 for further information.
The Board is satisfied that the provision of non-audit services during the year by Ernst & Young is compatible with, and did not compromise, the
auditor independence requirements of the Corporations Act 2001 (Cth) for the following reasons:
1. all non-audit services provided by Ernst & Young were reviewed and approved to ensure they do not impact the integrity and objectivity of
the auditor; and
2. the nature and scope of each type of non-audit service provided means that auditor independence was not compromised.
1 No final dividend was determined
Annual Report 2021 59