28th Aug 2014 08:24
LONDON (Alliance News) - Spire Healthcare PLC Thursday swung to a loss in the half year to end-June, hit by finance and exceptional costs, despite seeing revenue rise.
Spire listed on the main market of the London Stock Exchange in July.
The company posted a pretax loss of GBP1.7 million, swinging from a pretax profit of GBP43.8 million a year before, as the company saw finance costs of GBP67.6 million, and exceptional costs of GBP11.1 million comprising of business reorganisation costs, restructuring costs, and regulatory and governance costs relating to a UK Competition and Markets Authority enquiry.
In the previous year, the company saw an exceptional GBP44.8 million gain relating to the sale of twelve property owning companies in 2013.
In the company's Private Medical Insurance division, revenue rose to GBP214.5 million from GBP209.2 million.
National Health Service revenue was up 29% to GBP116.9 million from GBP90.5 million. In the first half of the previous year, the temporary suspension of a locally commissioned complex hit Spire's volumes and rates; however, this recovered in the second half of 2013 going into 2014.
Self-pay revenues were up 8.9% to GBP70.7 million from GBP64.9 million. In early 2013 the company benefited from a number of hip revision procedures, but this work did not recur in 2014.
Spire expects revenue growth in the mid-single digits for the full year. Recent reductions in the 3% NHS tariff for the 2013/14 year was more than offset by volume growth in its NHS business, and it expects this to also be the case regarding a further reduction of the 2% NHS tariff that is applicable to the 2014/15 year.
The company said that its development strategy is on track, and expressed optimism over its recent acquisition of St Anthony's Hospital, and the further roll out of its Specialist Cancer Care Centres.
Shares in Spire were trading up 7.6% at 245.25 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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