Spire Healthcare expands facilities

However, revenue and profits faltered in the second half, a trend foreseen by outgoing chief executive Rob Roger following the outcome of last May's general election. New regulations have prompted lower levels of outsourcing by the NHS, causing a 10 per cent drop in Spire's referral revenue last year. But management is confident that the state of public healthcare in Britain will keep driving patients towards the private sector. In June, the government refreshed its 'choose and book' policy which allows patients to opt for self-pay procedures. Spire saw a 13 per cent underlying increase in turnover from this business, which helped boost overall NHS-related revenues in 2015. Total self-pay revenue was up 7 per cent in the same period.

Spire has continued to expand its own specialist care facilities too, opening a new radiotherapy and chemotherapy site in November, as well as starting work on a new theatre block in Surrey, due to open in 2016. That said, fewer exceptional costs relating to acquisitions, disposals and the 2014 IPO meant overall operating profit increased almost 60 per cent. Reported pre-tax profits also rose considerably, although this was helped by a significant reduction in interest costs payable against the group's bank facilities and loan arrangements post-IPO. Finance costs fell from £85.9m in 2014 to just £21.4m in 2015.

Analysts at Numis expect pre-tax profits of £93.5m for 2016, giving adjusted EPS of 18.2p, up from £89.3m and 17.8p in 2015.