Spire Healthcare profits grow following 'strong' FY performance

29th Feb 2024 08:12

(Sharecast News) - Private healthcare business Spire revealed on Thursday that full-year profits had surged in 2023 following a "strong" full-year performance.

Spire said revenues were up 13.4% at £1.35bn, while adjusted underlying earnings improved 23.5% to £130.4m and operating profits had grown 32.3% to £126.2m.

The FTSE 250-listed group stated its improved revenue performance was driven by increasing demand for private healthcare, which remained strong throughout the year. Admissions were up by 5.3% to 276,705 as 2023 saw "particularly high demand" from private medical insurance patients.

Chief executive Justin Ash said: "This is a strong set of results, delivered during a period of macroeconomic uncertainty and in an inflationary environment, demonstrating that our strategy and execution is working.

"2024 will be a key year as we continue to transform the business. Through our programme of investments in digital platforms, we will be driving further change and improvement, benefiting patients and colleagues, and generating significant efficiencies. Our new services will become material contributors to our operations and financial results, as we strive to provide a more integrated healthcare offering."

Spire added that since year-end, it has continued to trade in line with management expectations, with the group remaining confident of reaching medium-term targets set at the time of its capital markets day in 2022.

Separately, Spire revealed that chief financial officer Jitesh Sodha had decided to step down after five years in the role and will be replaced by current deputy CFO, Hardant Samra. Sodha will step down from the board following the group's annual general meeting in May, following which he will continue in the business reporting to Ash until February 2025 to ensure a smooth transition.

As of 0850 GMT, Spire shares were down 1.90% at 232.0p.

Reporting by Iain Gilbert at Sharecast.com