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Spire Healthcare Group PLC reported a rise in interim revenue, citing ‘strong demand for private treatment’, but suffered a fall in profit as it eyes further expansion into community-based clinics.
For the six months that ended on June 30, the London-based private healthcare provider said pretax profit fell 36% to £3.0 million from £4.7 million a year earlier.
Cost of sales amounted to £328.4 million, up 55% from £304.1 million a year earlier as a result of ‘increased agency spend due to Covid-19 related absences,’ the company explained.
Revenue, however, rose by 7.1% to £597.9 million from £558.2 million, driven by strong demand for private treatment.
Adjusted earnings before interest, tax, depreciation and amortisation rose 10% to £105.8 million from £96.0 million a year earlier.
Chief Executive Officer Justin Ash says: ‘Our revised strategy leaves us well positioned to continue to help meet the nation's growing healthcare needs. I am looking forward to the expansion of Spire Healthcare's proposition into community-based clinics and extending our private GP provision, as we continue to grow and deliver for all our stakeholders.’
The company did not propose an interim dividend. It said no dividends have been proposed or paid since the start of the pandemic.
Looking ahead, Spire Healthcare said it is encouraged with the further growth of our private patient revenue and expects to see continued private revenue growth during the second half of the year, with further profit and margin growth.
As a result, it has kept its 2022 guidance unchanged.
Shares were up 1.6% at 236.19 pence each on Thursday morning in London.
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