Spire Healthcare Group (SPI) H1 2024 earnings summary

Executive summary

• Group revenue grew 12.7% to £762.5m in H1 2024, with adjusted EBITDA up 10.8% to £130.6m and adjusted EBIT up 11.7% to £75.7m, driven by strong PMI and NHS demand and successful integration of Vita Health Group.

• Statutory profit after tax rose 11% to £14.1m; adjusted profit before tax up 20.2% to £26.8m.

• Integration of Vita Health Group progressing well, contributing £53.0m–£59.7m in revenue and £4.3m–£5.1m in adjusted EBITDA.

• Focus on quality, with 98% of sites rated good or outstanding and record patient satisfaction at 97%.

• Cost savings and digitalisation initiatives on track, targeting £15m in 2024 and supporting margin expansion.

Financial highlights

• Adjusted EBIT up to £75.7m; statutory profit after tax up 11% to £14.1m; adjusted PBT up 20.2% to £26.8m.

• Hospital business revenue grew 5.4% (adjusted for site sale), with EBITDA margin up to 18% from 17.7%.

• PMI revenue up 9.7% and ARPC up 4.2%; self-pay ARPC up 7.5% but revenue down 3% due to patient switching.

• NHS revenue up 5.2% year-over-year, with ARPC up 6.4% versus NHS tariff increase of 0.6%.

• CapEx investment of £51.5m in H1, with full-year guidance of £95m–£105m.

Outlook and guidance

• Full-year adjusted EBITDA guidance reaffirmed at £255m–£275m; hospital revenue expected to grow >5%.

• Vita revenue expected to exceed £100m and adjusted EBITDA c.£10m in 2024.

• Over £15m in cost savings targeted for FY24, weighted to H2; positive on medium-term revenue and margin targets.

• ROCE expected at 8–9% and bank debt leverage below 2.0x by year-end.

• Management confident in further progress in H2 2024, supported by strong demand and efficiency gains.