Spire Healthcare swings to profit in first half

Hospital operator Spire Healthcare said on Monday that it swung to a profit in the first half thanks in part to better-than-expected NHS revenue, as it backed its full-year guidance.

In the six months to the end of June, the company swung to a pre-tax profit of £9.6m from a loss of £2.2m in the first half of last year, as revenue rose 3.4% to £491.6m.

Spire saw growth across all three payor groups, with private medical insurances sales up 5.1%, while self-pay and NHS sales rose 1.4% and 2.5%, respectively.

Chief executive Justin Ash said: "This was a good performance with clear signs of our strategic and operational initiatives bearing fruit. We promised 2019 would be a year of stabilisation with revenue growth, continued quality improvement, cash generation and net debt reduction. All have been achieved in H1, with good operating profit performance.

"We saw growth in both private insurance and self-pay, with a particularly strong result in private insurance reflecting rising consumer awareness following our marketing campaigns. NHS revenue in the period also outperformed expectations as we worked in close partnership with our local trusts and Clinical Commissioning Groups (CCGs) to selectively open new services that respond to their changing needs. "

The company reiterated its outlook for 2019, which remains in line with management expectations.

"We expect continued revenue growth, offset by mix and planned investments," it said.

At 0935 BST, the shares were down 0.1% at 125p.