LONDON (Alliance News) - Spire Healthcare Group PLC on Friday reiterated its guidance for 2015, and forecast revenue growth for 2016, saying it expects a boost from a proposed rise in the National Health Service tariff.
The private hospital group had previously cut its guidance for 2015 for a second time in November, and on Friday it reiterated this guidance, continuing to expect revenue of between GBP882 million and GBP888 million for 2015, with an earnings before interest, tax, depreciation and amortisation margin of 18.0% for the year as a whole.
This is increased from revenue of GBP856.0 million in 2014.
The company highlighted that in December, UK health services regulator Monitor and NHS England issued a tariff update and draft prices for 2016/17, proposing a 1.1% increase in the NHS tariff for the twelve months from April 2016 for all services paid for by national tariff, including those provided by the private sector.
Spire said this uplift, after "taking into account an additional proposed adjustment for medical indemnity", is expected to provide a positive boost across its NHS services of around 1.5%.
Assuming that this NHS tariff proposal is confirmed, which is expected by the end of February or early March, Spire now expects its 2016 revenue to grow by between 3.0% and 5.0% from 2015, and its Ebitda margin will remain consistent with 2015.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Spire Healthcare (SPI)