Spire Healthcare profits jump on private demand

3rd Mar 2022 10:15

(Sharecast News) - Hospital operator Spire Healthcare reported a strong rise in annual profit, driven by "significant" demand for private treatment.

Core earnings rose 10.6% to £178.2m, but was still 5.7% lower than pre-pandemic 2019 levels. Revenue climbed above £1bn first time with 20.3% growth year on year.

Covid-related costs came in at £53m and the company warned that while self-isolation restrictions have now been lifted in the UK, expenses "will continue through 2022". It also targeted savings of at least £15m this year to offset inflationary and other cost increases.

"There may be possible upside if Covid-19 prevalence reduces leading to fewer cancellations and staff absences," Spire said on Thursday.

The company reported that self-pay revenue climbed more than doubled, adding that it now formed 26.4% of sales against 14.7% in 2020 and 18.2% in 2019.

"We have delivered record growth in private patient revenues in 2021, and we expect to see continued strong growth in 2022. Trading in January and February was in-line with the board's expectations and continues the trend of strong revenue growth," Spire said.

"We are in particular encouraged by the significantly higher level of private enquiries received during the year to date compared to recent years. We anticipate that the NHS will continue to be an important contributor to revenue while growing modestly."