Spire Healthcare Group (SPI) H1 2025 earnings summary

Executive summary

• H1 2025 performance delivered in line with guidance, with revenue up 4.9% to £796.7m and adjusted EBITDA up 2.8% to £133.8m, reflecting solid growth in Hospital and Primary Care segments.

• Major transformation initiatives included consolidating hospital admin into three Patient Support Centres and reducing permanent staff by c.400 roles, supporting efficiency and shareholder value.

• Statutory operating profit fell 12.0% to £63.0m due to £13.0m in restructuring and transformation costs; profit after tax declined 50.4% to £7.0m.

• Diversified three-payer strategy and scaling of Primary Care are central to ongoing transformation.

• Business is well-positioned to navigate a dynamic healthcare environment and drive long-term shareholder value.

Financial highlights

• Group revenue grew 4.9% year-over-year to £796.7m; hospital revenue up 4.7% to £732.3m.

• Adjusted EBITDA increased 2.8% to £133.8m (margin 16.8%); hospital adjusted EBITDA up 3.3% to £130m (margin 17.8%).

• Adjusted profit before tax declined 11.2% to £23.8m; adjusted free cash flow was £15.3m, down 17.7% year-over-year.

• ROCE expanded by 50bps to 8.1% (8.3% excluding NI/NMW rises).

• Net bank debt increased to £356.7m, with leverage at 2.2x adjusted EBITDA.

Outlook and guidance

• FY25 guidance unchanged: mid-single digit revenue growth, adjusted EBITDA £270m–£285m, capex £90m–£100m, ROCE ahead of FY24, and leverage ~2x at year-end.

• Trading remains in line with market expectations; Board maintains dividend policy at 25–35% of profit after tax.

• Greater EBITDA growth expected in H2 as further cost savings are realized; >£30m in annual savings on track.

• Technical guidance: effective tax rate 28%-38%, net bank debt £305m-£355m.