Spire Healthcare Group (SPI) Status Update summary

Market opportunity and strategic rationale

• Primary care market is large, fast-growing, and fragmented, with a value similar to hospital care at around £6 billion each and strong growth rates across segments like GP services, talking therapies, and physiotherapy.

• Expansion into primary care aims to create long-term patient relationships and complements the hospital business, leveraging strengths in talking therapies and MSK/physio.

• The business now serves 300,000 primary care patients, with ambitions to scale further through integrated services and national networks.

Financial targets and growth drivers

• Current EBITDA from primary care is over £10 million, with a medium-term target of £40 million, supported by organic growth, new contracts, and M&A.

• Growth is underpinned by NHS contract wins, new service lines (e.g., children’s mental health, neurodiversity), and expanding B2C and corporate offerings.

• New clinics will be rolled out, focusing on smaller, CapEx-light formats, with EBITDA contribution ramping up from 2027 onwards.

• M&A is targeted at occupational health and small clinic groups, with immediate accretion and a focus on building a national footprint.

Service lines and operational structure

• Four main service lines: talking therapies, physio, occupational health, and GP, with a growing dermatology business linked to mental health expertise.

• Business is structured around customer groups (NHS, corporate, B2C) rather than service lines, enabling cross-selling and integrated care pathways.

• Virtual care is significant, especially in talking therapies (80-90% remote), supporting a CapEx-light model and operational efficiency.