Spire Healthcare swings to profit as sales rise 3.4%

Writer,

Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Hospital owner Spire Healthcare swung to a first-half profit after a strong showing from its private insurance business helped boost sales.

Pre-tax profit for the six months through June amounted to £9.6m, compared to a loss of £2.2m on-year.

Revenue rose 3.4% to $491.6m.

Spire Healthcare held its interim dividend steady at 1.3p per share.

For the full year, the company said it still expected continued revenue growth, 'offset by mix and planned investments'.

'This was a good performance with clear signs of our strategic and operational initiatives bearing fruit,' chief executive Justin Ash said.

'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 the first half, 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 to selectively open new services that respond to their changing needs.'

At 9:11am: (LON:SPI) Spire Healthcare Group share price was -1.35p at 123.75p