13th Aug 2020 11:38
(Alliance News) - Spire Healthcare Group PLC on Thursday said it agreed to the terms set out with NHS England for the variation of the Covid-19 contract as well as said trade was hit quite hard in the first half of 2020.
The London-based independent hospital group said the variation to the NHSE Covid-19 contract will allow it to start transitioning back to normal business. The company will do this by providing NHS elective care to reduce waiting lists while increasing private activity in its 35 English hospitals.
The most significant change to the contract stated that the company is to guarantee the availability of a pre-defined number of beds for privately funded patients. NHSE will cover all cash costs incurred.
The terms of the variation will remain in place until the end of October with a definitive expiry date set for the end of December.
Spire Healthcare expects to post an adjusted earnings before interest and tax for the first half ended June 30 in the range of GBP13 million and GBP18 million, down from GBP51.4 million a year prior.
The company also expects a pretax loss between GBP24 million and GBP29 million, swinging from a pretax profit of GBP10.0 million for the same period last year.
Spire Healthcare said: "Growing call numbers and bookings, and indications from insurance partners show a steady return of the private market, which, combined with strong NHS demand, provides the Company with confidence for the medium term.
"Spire Healthcare will now be available to support the NHS to reduce waiting lists whilst growing private activity and remains committed to focusing on its private business over the medium term."
The company will be posting its interim results for the first half on September 17 as well as an updated on this financial year's guidance.
Spire Healthcare shares were up 3.2% at 89.60 pence each on Thursday morning.
By Greg Roxburgh; [email protected]
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