Spire Healthcare cuts full year revenue guidance

Hospital group Spire Healthcare cut its full year revenue guidance as it said revenues from NHS Local contracts continued to decline in the four months to the end of October.

The company said it now expects full year revenues to show growth of 3% to 3.7%, or between £882m and £888m, down from previous guidance of 4% to 6% or £890m to £907m.

Spire expects group earnings before interest, taxes, depreciation and amortisation for the full year to be between £159m and £162m. In addition, it said the EBITDA margin should remain above 18% for the year.

Since its update on 21 August, NHS Choose & Book revenues have shown good growth, but NHS Local Contract revenues have continued to decline and were down 39% for the four months ended 31 October.

Spire said total group revenue grew 4.1% in the ten months to the end of October, while adjusted group EBITDA rose 4% and net debt stood at £410m.

Inpatient and day case admissions rose 4% over the equivalent period in 2014.

Chief executive officer Rob Roger said: “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.”

At 0932 GMT, Spire shares were down 5.9% at 4.75p.