Analyst & Investor Site Visit

14 Feb 2006 07:00

Tribal Group PLC14 February 2006 Tribal Group plc Site Visit for Analysts and Investors 14 February 2006 Tribal Group plc is today hosting a visit for analysts and institutionalinvestors to the St. Mary's NHS Treatment Centre in Portsmouth operated byMercury Health, Tribal Group's healthcare delivery division. The Portsmouth facility is the third NHS treatment centre to be opened byMercury Health. Its fourth facility, an elective orthopaedic centre in HaywardsHeath, is due to open in July 2006. The first three facilities have all beenopened on time and to budget and are expected to make a positive contribution toGroup operating profit in the six months to 31 March 2006. In addition to establishing its first four centres, Mercury Health is alsoparticipating in the second wave of NHS procurement opportunities. The scale ofthese opportunities is unprecedented. The aggregate value of current NHSprocurement programmes across both diagnostics and elective surgery is estimatedto be in the region of £3-4 billion. In diagnostics, as previously announced, Mercury Health is shortlisted on threeregional contracts to provide a range of diagnostic imaging, endoscopy and otherservices to NHS patients. In elective surgery, the company has submittedpreliminary proposals in respect of a significant proportion of the 24 schemescurrently being tendered and has been shortlisted on a number of the schemes forwhich, to date, notification has been received. Announcement of preferred bidders on both the diagnostics and elective surgeryschemes is not expected to commence before summer 2006. In addition to theseopportunities, Mercury Health is currently submitting a preliminary proposal tojoin the Extended Choice Network, a list of independent sector clinicalfacilities that will participate in the Choose and Book arrangements currentlybeing introduced for NHS patients. The precise details of the funding required to support any diagnostic andelective surgery contracts that may be won by Mercury Health will not bedetermined until the outcome of the current procurement process is known.However, at this stage, Tribal Group believes that the principal elements of anyfunding package will include non-recourse senior debt to support theconstruction of new clinical facilities, finance from existing Tribal Groupbanking arrangements to fund implementation costs and, if required, utilisationof Tribal Group's performance guarantee facility to support performance securityrequirements. The publication last month of the White Paper on out of hospital services is animportant step in opening up the provision of primary care services to newproviders. A number of pilot primary care schemes are currently being tenderedto provide a range of services including GP practices, walk-in centres andsupport services to care homes. Mercury Health's primary care division has beenshortlisted on several of these schemes. The visit to the Portsmouth centre today will provide analysts and investorswith the opportunity to meet the senior management team of Mercury Health and tolearn more about its operations, the NHS reform agenda and current marketopportunities. No material new information on Tribal Group will be disclosed. Acopy of the presentation given during the visit will be available on TribalCroup's website - www.tribalgroup.co.uk. CONTACT DETAILS: Name: Henry Pitman, Chief Executive, Tribal Group plc Peter Martin, Chief Executive, Mercury Health Telephone: 01285 886020 This information is provided by RNS The company news service from the London Stock Exchange