Spire Healthcare Group (SPI) H2 2024 earnings summary

Executive summary

• Delivered strong full-year results for 2024, with all core metrics in line with guidance and robust strategic execution in a dynamic market.

• Achieved 6.2% year-over-year revenue growth, with hospital revenues up 5.5% and primary care up 15%.

• Adjusted EBITDA rose 9% to GBP 260 million, and adjusted profit before tax increased by 29.4% to GBP 50.2 million.

• NHS revenue accelerated 8.8% year-over-year, with increased focus on high acuity procedures, margin, and efficiency.

• Delivered GBP 20 million in efficiencies, surpassing guidance, and cared for 1.3 million people, up from just over 1 million.

Financial highlights

• Group revenue reached GBP 1.4 billion, up 5.5% year-over-year; hospital adjusted EBITDA at GBP 249.7 million with an 18% margin.

• Adjusted EBIT in hospitals rose to GBP 143.3 million (margin 10.3%).

• Primary care revenue was GBP 121 million (+15%), with EBITDA margin expanding by 340 basis points and adjusted EBITDA of GBP 10.3 million (margin 8.5%).

• Adjusted profit before tax conversion rate rose to 19.3%.

• Dividend per share increased to GBP 0.023, up 9.5%.

Outlook and guidance

• Facing GBP 30 million in cost increases in 2025 due to national insurance, minimum wage, and energy costs.

• Efficiency program to deliver over GBP 30 million in 2025 and GBP 80 million cumulative savings by 2026.

• Expecting mid-single-digit revenue growth and margin expansion in 2025, with adjusted EBITDA guidance of GBP 270–285 million.

• Hospital EBITDA margin target of over 21% and EBIT margin over 13% by 2027.

• Dividend policy maintained at 25–35% of PAT.