Circle stock up after board indicates broad growth

Circle Holdings stock shot up by a third on Tuesday, after the company indicated positive growth across its entire business ahead of full-year results to 31 December 2015.

The AIM-traded employee co-owned healthcare group said that, during the financial year, Circle exceeded management expectations for both group revenue and EBITDA, with all assets delivering improved results year-on-year.

Last year saw an increase in both patient volumes and revenue, the company said, by 8% and 15% respectively.
EBITDA pre-exceptionals delivered an improvement of over 50% compares to 2014, Circle's board confirmed. All locations apart from Circle Reading were now operating on an EBITDA positive basis.

"Our Bath, Reading and Nottingham hospitals expect to see continued growth in NHS volumes as well as increased self-pay patient volumes", Cirlce's board said of the company's outlook.

"The Circle Bedfordshire MSK service continues to demonstrate the advantages of integration and subsequent clinical improvements and financial benefits to the NHS", it continued.

Work was also progressing on CircleBirmingham - the company's fourth new-build hospital - with an anticipated construction start date of the second quarter of 2016.

The company now had a view to open a larger facility than was originally anticipated, the board said, with construction financing discussions progressing.

Circle Holdings was due to announce its results for the 2015 financial year on 30 March. At 1040 GMT, shares in the company were up 33.33% to 23p.