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(Sharecast News) - Private hospitals chain Spire Healthcare, about to be bought by a group of investment firms in a deal worth £1bn, posted lower first half operating profit of £38.4m down from £63m a year earlier.
Group revenue remained broadly flat at £792.7m, with accelerated growth in PMI, Self-Pay and Primary Care revenues, partially offsetting lower NHS activity following the previously announced funding-related slowdown in Q1, the company said on Wednesday.
Hospital revenue dipped 1.6% to £720.6m, with adjusted EBITDA down to £106.9m and margins easing to 14.8% on lower NHS activity. Private pay continued to grow, helped by investment in patient support centres, marketing and consultant recruitment.
SelfPay rose 4.5%, while PMI revenue increased 3.1% despite tighter claims authorisation. NHS revenue fell 14.3%, though the decline narrowed sharply in Q2 after commissioning plans were reset in April.
Primary Care delivered strong growth, with revenue up 8.1% to £72.1m and adjusted EBITDA rising 23.7% to £5.5m.
Adjusted loss before tax was £2.6m, compared with a £23.8m profit a year earlier, reflecting lower EBITDA and higher depreciation, amortisation and financing charges.
Tulip UK, comprised of funds managed or advised by Toscafund Asset Management, Spire's second largest shareholder, THCP Advisory and Ares Management offered 250p a share after months of talks.
The group said it continues to target annual adjusted EBITDA broadly in line with FY25, reiterating guidance despite lower NHS activity in the first half. Management highlighted strong visibility over NHS volumes, improving privatepay momentum and ongoing transformation savings as key supports for the second half.
Spire added that enhancements to patient access, clinical capacity and service development are expected to underpin marketshare gains, while disciplined capital allocation and robust cash generation provide further confidence in the fullyear outlook.
Reporting by Frank Prenesti for Sharecast.com