27th Aug 2015 09:50
LONDON (Alliance News) - Healthcare services company Circle Holdings PLC Thursday posted a narrowed pretax loss for the first half of 2015 as higher patient volumes helped drive up revenue growth.
In the half year to end-June Circle posted a pretax loss of GBP6.1 million, narrowed from a pretax loss of GBP10.6 million a year before, as revenue rose to GBP62.5 million from GBP48.9 million, and lower exceptional costs. In the previous year the company reported a GBP2.8 million impairment of property, plant and equipment.
Revenue growth was driven by a rise in patient volumes of 12%, with daycases up to 24,135 from 21,396 a year before, and outpatients up to 158,407 from 141,667.
Circle Holdings said it expects modest growth on each of its sites, particularly in National Health Service and self-paying patients, whilst private medical insurance patient levels are expected to be flat. It is currently seeing softer demand by NHS patients during the summer, but expects increased growth as Winter approaches.
In the previous year the company had reported a widened loss due to exceptional costs related to its withdrawal from the operation of Hinchingbrooke hospital in Cambridgeshire, as it had dubbed it no longer sustainable. The move was significant, as Hinchingbrooke was the first NHS hospital to be run by a private company.
Circle completed the withdrawal from Hinchingbrooke in March.
"The half year saw greater clarity for Circle, as we confirmed our withdrawal from Hinchingbrooke, focussed on performance at our other sites, and made the first moves in international strategic partnerships," said Chief Executive Officer Stevel Melton in a statement.
"The business has developed strong IP in public and private provision. This supports its ability to realise sustainable long term returns, though this requires the continued growth and opening of the NHS and private markets. Overall, this has been a half-year of growth: and we have good options for continued growth, in public and private sectors across the world," Melton added.
Shares in Circle Holdings were down 2.5% at 42.15 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Rize Circular