Spire Healthcare Group Plc Post-close Trading Update
Spire Healthcare Group plc (LSE: SPI), the major UK independent hospital group, provides the following update for the financial year ended 31 December 2014.
Following the first financial year end of Spire as a publicly listed company, we are pleased to provide updated guidance for the year ended 31 December 2014.
• Overall trading during the fourth quarter 2014 has been positive and we now expect that revenue for the full 2014 financial year will be in the range of £850 million to £855 million. This includes a revenue contribution of approximately £19 million from the recently acquired St Anthony's hospital.
• We expect that EBITDA for the full 2014 financial year will be in the range of £157 to £160 million, with St Anthony's hospital making a nominal contribution to EBITDA in 2014. Adjusted EBITDA for 2013 was £150 million.
• Both the Private Medical Insurer business and Self-Pay business have seen increased revenues over the prior year. Overall, excluding the revenue contribution of St Anthony's, growth in private revenues is substantially consistent with the first half of 2014.
• Revenues from services provided to the NHS continue to grow ahead of private revenues and we expect NHS revenues to account for approximately 29% of total revenues in 2014, up from 25% in 2013 (excluding St Anthony's).
• Net debt at 31 December 2014 was approximately £425 million.
All development projects remain on schedule:
• After accounting for the later than expected date of Spire's taking operational control of St Anthony's (caused by the delay in the CMA approval to the acquisition), we can confirm that St Anthony's is now trading in line with our initial plan.
• The planning application for Spire's proposed new hospital in Manchester (a 6-theatre, 72-bedded development) was submitted in October 2014. Assuming the application is approved, work is expected to begin on site in the second quarter of 2015.
• The planning application for Spire's proposed new hospital in Nottingham (a 4-theatre, 56-bedded development) was submitted in November 2014. Assuming the application is approved, work is expected to begin on site in the second quarter of 2015.
• The planning application for a major new cancer radiotherapy centre next to the Baddow Hospital at the Essex Healthcare Park in Chelmsford, was submitted on 12 December 2014. The centre will comprise a radiotherapy facility, housing two state-of-the-art linear accelerators, a wide-bore CT scanner, consultant rooms and an eight bay chemotherapy suite. Assuming the application is approved, work is expected to begin on site in May 2015, with completion expected before the end of 2015.
Comment from Rob Roger
Rob Roger, Chief Executive of Spire, said:
"As Spire finishes its first financial year as a public company, I am pleased to note that during the period we have grown revenues and EBITDA from all our three major payor groups. The growth in the NHS business in the second half of the year has been particularly strong, reflecting the increasing levels of support that the NHS sought from the independent hospital sector to manage its waiting list requirements as the UK entered the winter season. I shall comment more fully on the outlook for 2015 when we announce our preliminary results for financial year 2014. However, in view of our recently renewed Bupa contract and our expectation of continued growth in our Self-Pay and NHS payors, I am confident that we can continue to grow all parts of our business in the next financial year and beyond."
Full Year Results Announcement
The Company expects to make its preliminary announcement of the full year results on Tuesday 24 March 2015.