24th Mar 2015 07:58
LONDON (Alliance News) - Spire Healthcare Group PLC Tuesday proposed a maiden final dividend and guided mid-to-high single-digit revenue growth for 2015, as it posted a narrowed pretax loss for 2014 on strong revenue growth in its first results since listing on the London Stock Exchange last July.
The independent hospital group proposed a maiden final dividend of 1.8 pence, and said that, as it detailed at the time of its IPO last July, it plans to adopt a progressive dividend policy based on a payout ratio of around 20% of pretax profit.
Spire posted a pretax loss of GBP7.0 million in 2014, narrowed from a pretax loss of GBP51.9 million in 2013, as a rise in revenue to GBP856.0 million from GBP764.5 million helped offset GBP54.0 million in exceptional costs primarily relating to its listing and GBP85.9 million in finance costs including interest on loans and bank facilities.
In the previous year, the company had posted finance costs of GBP196.1 million, including exceptional costs of GBP42.2 million from the sale of a freehold and interest rate swaps being recycled into the income statement as they no longer met the criteria for hedge accounting.
Stripping out these exceptional costs, Spire posted a rise in earnings before interest, tax, depreciation and amortisation of 6.1% to GBP159.2 million from GBP150.0 million.
Spire attributed its strong revenue growth to positive contribution from all three of its major payor groups, including a 28.5% rise in National Health Service revenue boosted by an increase in the number of surgical admissions, in-patient, daycase and out-patients, and bolstered by its acquisition of St Anthony's Hospital last May.
Spire guided for 2015 an Ebitda margin in line with 2014 and high single-digit growth in earnings per share. It expects growth in its reported profits to be weighted towards the second half of 2015, as a result of the timing of its listing in 2014 and consequent listing costs.
"Spire is ideally positioned for its next phase of development. We are well capitalised and ready to capture a growing share of the UK's expanding independent healthcare market and provide much needed additional capacity in areas such as radiotherapy and cancer care," said Chief Executive Officer Rob Roger in a statement.
"Overall, the positive revenue trends are continuing into 2015 and should once again drive mid to high single-digit revenue growth at Ebitda margins in line with 2014," Roger added.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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