Spire Healthcare Group PLC on Thursday reported double-digit growth in profit and revenue during the opening half, driven by greater demand from private patients and the NHS.
The London-based healthcare company said pretax profit increased 12% to £22.7 million in the first half that ended June 30 from £20.3 million the previous year.
Revenue rose 13% to £762.5 million from £676.5 million, while cost of sales grew 15% to £416.4 million from £362.3 million.
No interim dividend has been declared, unchanged from last year.
Capital expenditure, focused on investment in facilities and equipment, rose 66% to £51.5 million from £31.0 million.
Chief Executive Officer Justin Ash said: ‘Our private revenue grew [5.1%] in H1, driven by strong [9.7%] growth in private medical insurance which has seen a resurgence amongst working-age people.
‘Our work with the NHS also increased in the first half [with revenue up 5.2%], partly due to higher commissioning, increased complexity and patients exercising the right to choose where they receive treatment. Spire stands ready to work with the new government to help address NHS waiting lists.’
Spire reported good progress with its strategy after successfully implementing its cost savings programme which is on track to deliver at least £15 million in savings in 2024.
98% of the company’s inspected clinics and hospitals were rated either ‘good’ or ‘outstanding’ by the UK’s Care Quality Commission with 97% of inpatient and day-case patients rating their overall experience as ‘good’ or ‘very good’.
‘The group remains on track to deliver the planned savings, efficiencies and digitalisation initiatives set out at the capital markets event last April and maintains a positive outlook for FY25,’ Spire added.
Full year 2024 guidance has been reaffirmed with adjusted earnings before interest, tax, deprecation, and amortisation, expected within a £255 million to £275 million range. At the lower end, this would represent a 9.0% increase from £234.0 million in 2023.
Spire shares were down 0.2% at 249.50 pence each in London on Thursday morning.
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