Interim Management Statement

RNS Number : 3115W

Spire Healthcare Group PLC

06 November 2014

 



Spire Healthcare Group Plc

6 November 2014

Spire Healthcare Group Plc

("Spire Healthcare Group", "Spire", "the Company" or "the Group")

Interim Management Statement

London, UK, 6 November 2014: Spire Healthcare Group plc (LSE: SPI), the second-largest UK independent hospital group, provides the following update for the period from 1 July 2014 to 31 October 2014.

Trading

Trading overall during the period and in the financial year to date has been in line with expectations.  Revenue for the full year is expected to be in the range of £825 million to £840 million.

·      The Private Medical Insurer business has seen stable volumes, with a marginal increase in revenue per case.

·      The Self-Pay business is benefiting from increased volumes, also with a marginal increase in revenue per case.

·      NHS volumes continue to grow ahead of private volumes, both in locally contracted work and Choose and Book, and with a marginal increase in revenue per case.

All development projects remain on schedule.

Net debt at 30 September 2014 was better than expectations at £435 million.

Bupa Contract Renewal

Bupa and Spire announced today a new long-term agreement. Commencing on 1st April 2015, the agreement has a minimum term of four years with prices agreed for the six years through to 31st March 2021. This new agreement provides the basis for a long term partnership between the two organisations and highlights their intention to offer more affordable, high quality healthcare to patients and customers.  Following this announcement, Spire reaffirms its previous guidance on overall future PMI revenue growth and continues to anticipate an increase in PMI volumes. More details of this agreement are contained in a separate announcement.

Comment from Rob Roger

Rob Roger, Chief Executive of Spire, said:

"Spire has made strong progress in 2014, both before and after its July IPO. All our three major payor groups are showing growth in revenues, and our business development plans remain on track. The NHS Five Year Forward View paper published in October 2014 confirms our view that the "NHS funding gap" is becoming increasingly significant, and that the independent hospital sector will play a key role in bridging the gap between what the NHS will be able to provide in terms of healthcare, and what the UK population will expect to receive.

Today's announcement of the new contract between us and Bupa is very positive news. In seeking to tackle some of the key challenges facing their mutual customers, Bupa and Spire have included measures that aim to build on the existing high standards of quality of care and customer experience at Spire hospitals, focussing on three key areas for patients - quality of medical care, high levels of service experience and increasing affordability of treatment, particularly for outpatients."

For further information please contact:

Spire Healthcare
Antony Mannion, Investor Relations Director	[phone]
Simon Gordon, Chief Financial Officer	[phone]
Maitland
Martin Barrow	[phone]

About Spire

Spire is a leading independent hospital group in the United Kingdom, with 39 hospitals and 13 clinics across England, Wales and Scotland. The Group delivered tailored, personalised care to more than 236,000 in-patients and daycase patients in 2013, and is the leading provider by volume of knee and hip operations in the United Kingdom.

Spire offers in-patient/daycase procedures in areas including orthopaedics, gynaecology, cardiology, neurology, oncology and general surgery and also diagnostic services including imaging and pathology. The Group also offers out-patient services, such as consulting, minor procedures, treatments, health checks and physiotherapy.

 

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