9th Sep 2021 10:09
(Alliance News) - Spire Healthcare Group PLC on Thursday confirmed revenue in the first-half of 2021 overtook 2019 levels, despite its facilities still weathering pandemic restrictions.
Spire, which operates 39 private hospitals and eight clinics across the UK, made revenue of GBP558.2 million in the six months to June 30. This was up 39% from GBP401.9 million in the same period last year and 14% higher from GBP491.6 million in the first half of 2019.
It swung to a pretax profit of GBP4.7 million from a loss of GBP231.3 million year-on-year. First-half pretax profit in 2019 was GBP9.6 million.
Underlying trends in the period include higher private enquiries than those seen in 2019, a strong waiting list for private surgery and last minute cancellations.
Spire chief executive Justin Ash said the healthcare provider experienced "unprecedented demand from private patients" in the first-half.
The company said it was hit by the 'pingdemic' as some of its patients and staff were instructed to isolate by the NHS Test & Trace app, causing higher labour and lower operating profit. Earnings before interest, tax, depreciation and amortisation was GBP5.2 million lower in the period compared to 2019.
Demand for private healthcare pushed Spire's first-half revenue from self-pay to "record levels" of GBP129.9 million, more than double in 2020 and 47% higher than 2019.
"As waiting lists continue to climb, the company is helping patients find options for treatment, be that privately or by assisting the NHS," Ash commented.
"We are of course experiencing material additional costs arising from the complexities of delivering safe care in a Covid-secure environment, which will continue as long as Covid case numbers remain high in the UK."
The company declared no interim dividend, which has been the case since the start of the pandemic at the beginning of last year.
In late May, Spire announced that it had agreed to a GBP1 billion takeover offer from clinical practices operator Ramsay Health Care Ltd.
The offer of 240 pence per share in cash values Spire's entire share capital at GBP999.6 million and gives the hospital operator an enterprise value, including debt, of GBP2.06 billion.
"The long-term prospects for the healthcare sector are positive and we stand ready to play our part in addressing waiting lists and supporting the UK's recovery from the pandemic," added Ash.
Shares in Spire were flat at 236.50 pence in London on Thursday morning trade.
By Josie O'Brien; [email protected]
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