12th Nov 2015 08:37
LONDON (Alliance News) - Spire Healthcare Group PLC Thursday lowered its guidance for full-year revenue following weak trading in the four months to end-October, particularly in the NHS Local Contract business.
Shares in Spire were trading down 11% at 320.80 pence early Thursday, the biggest faller in the FTSE 250.
The UK hospital group said total group revenue in the ten months ended October 31 grew 4.1%, while adjusted group earnings before interest, tax, depreciation and amortisation also grew 4%, but that while NHS Choose & Book revenue showed good growth, NHS Local Contract revenue declined 39% in the four months to end-October.
As a result, Spire now expects full-year revenue to show growth between 3% and 3.7%, which stands at between GBP882 million and GBP888 million, against its previous growth of between 4% and 6%, representing GBP890 million to GBP907 million.
It expects its Ebitda margin to remain above 18% for the full year, and group Ebitda to be between GBP159 million and GBP162 million.
"Despite challenging short-term conditions, underlying market dynamics remain highly favourable for Spire, with overall UK healthcare demand outstripping supply, necessitating increased NHS outsourcing over time to the independent sector. We are also working closely with insurers to develop ways to grow the PMI market," Chief Executive Rob Roger said in a statement.
"Therefore, while we are still in the very early stages of an overall market shift that will move demand significantly into the independent sector, Spire's financial resilience, extensive regional network and development projects underway put us in a strong position to gain market share as this systemic change unfolds," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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