Spire Healthcare H1 revenues grow on strong NHS demand

(Sharecast News) - Healthcare group Spire Healthcare said on Wednesday that H1 revenues had grown amid strong NHS demand and strategic pricing across its hospital network. Spire said interim revenues had grown 4.9% to £796.7m, while adjusted underlying earnings rose 2.8% to £133.8m, though margins dipped slightly to 16.8% due to National Insurance and minimum wage increases.

Hospital revenues climbed 4.7% to £732.3m, with NHS income up 16.2% year-on-year, reflecting a shift toward higher-acuity procedures. Private patient revenues edged up 0.8%, while primary care revenue grew 6.5% to £64.4m, supported by new contracts and acquisitions.

Adjusted operating profits were broadly flat at £76.0m, while adjusted pre-tax profits dropped 11.2% to £23.8m and statutory pre-tax profits halved to £10.8m, impacted by £13.0m in restructuring costs.

However, Spire still opted to reaffirm FY guidance, including mid-single-digit revenue growth and adjusted EBITDA of £270-285m.

Chief executive Justin Ash said: "We have delivered performance in line with expectations in the first half of the year and are on track to do so in the second half. Our business continues to operate successfully in a fast-changing market.

"The market will remain dynamic and challenging throughout H2, but our ability to use all the levers at our disposal to flex what we offer our patients and payors, and where we offer it, is the highest it has ever been."

As of 0855 BST, Spire shares were up 0.44% at 226p.

Reporting by Iain Gilbert at Sharecast.com