Trading Statement

RNS Number : 2127L

Spire Healthcare Group PLC

08 January 2016

 

Spire Healthcare Group plc

("Spire Healthcare")

Post-close Trading Update

8 January 2016

Spire Healthcare Group plc (LSE: SPI), the major UK independent hospital group, provides the following update, reiterating the guidance for Financial Year 2015 and providing the outlook for Financial Year 2016.

Guidance for Financial Year 2015 confirmed

We reiterate the guidance in our 12 November 2015 trading update that:

·     Full year revenues for Spire Healthcare's 2015 financial year are in the range of £882 million to £888 million, and

·     EBITDA margin is c.18.0% for the 2015 financial year as a whole.

Outlook for Financial Year 2016

By individual payor group:

PMI

While we anticipate no material growth in PMI claims, we expect to maintain our current market share of the PMI market overall.

Self-pay

We anticipate continued strong growth as NHS waiting lists increase and further rationing takes place. This will be accelerated if PMI providers fail to gain further traction within the market.

NHS

Volumes: We expect continued strong growth in Choose & Book work and lower volumes for Local Contract work until the pre-election volume uplifts in 2015 work themselves out of the comparators (which will occur at the end of Q1 2016). We believe that continuing growth in NHS waiting lists should increasingly lead GPs to encourage patients to select a private hospital under the Choose & Book scheme.

Pricing: On 22 December 2015, NHS England and other bodies issued the NHS Planning Guidance*, and Monitor and NHS England issued the Tariff Update and draft prices for 2016/17**. In summary and taking these two documents together, Monitor and NHS England have proposed a 1.1% increase in the NHS tariff for the twelve months commencing 1 April 2016 for all services paid for by national tariff, including those provided by the private sector. This uplift, after taking into account an additional proposed adjustment for medical indemnity, is expected to have a positive impact across our NHS services of c.1.5% (based upon Spire's 2015 NHS case mix).  

Overall

Assuming that the revised NHS tariff proposal is duly confirmed (expected to be by the end of February or early March 2016), we now expect that:

·     Full year revenues for Spire Healthcare's 2016 financial year will grow by 3.0% to 5.0% over and above financial year 2015, and

·     EBITDA margin will remain consistent with that for Spire Healthcare's 2015 financial year as a whole.

Full Year Results Announcement

The Company expects to make its preliminary announcement of the 2015 full year results on Thursday 17 March 2016.

For further information please contact:

Spire Healthcare

Antony Mannion, Investor Relations Director	[phone]
Simon Gordon, Chief Financial Officer	[phone]
Maitland
Tom Eckersley	[phone]

* available at https://www.england.nhs.uk/wp-content/uploads/2015/12/planning-guid-16-17-20-21.pdf

** available at https://www.gov.uk/government/publications/201617-national-tariff-payment-system-draft-prices)

 

END

 

 

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