NHS delays help private healthcare provider Spire Healthcare’s profit jump by a third

Independent healthcare provider Spire Healthcare Group reported an uptick in revenues and operating profits in its annual results, as the UK’s private healthcare sector continues to perform strongly.

The FTSE 250-listed company, which operates 38 hospitals and works with over 8,000 consultants in the UK, saw its revenue increase by 13.4% to £1.4bn year on year, citing increased demand as the central reason for its growth.

Operating profit at the group, founded in 2007, was up 32% to £126.2m, despite inflationary pressures and what it said was a “period of macroeconomic uncertainty.” Meanwhile, adjusted earnings increased by 15% from £203m to £234m.

The results are further evidence of the extent to which Britain’s private healthcare sector continues to benefit from long NHS waiting lists and the country’s ageing population.

Justin Ash, Spire Healthcare’s chief executive officer, said: “This is a strong set of results… The high-quality diagnosis and treatment we provide in our hospitals continue to meet the demand for fast access to care throughout 2023.

“2024 will be a key year as we continue to transform the business through our programme of investments in digital platforms.”

During 2023 the group acquired Vita Health Group, a provider of mental and physical health services in England, for £73.2m. Spire also completed a new outpatients and diagnostic centre at Yale, a cardiac services facility at Manchester and Nottingham, and invested in new clinics at Abergele and Harrogate – the first two of 10 new medical clinics planned.

The firm expects a similarly rosy 2024, pointing to the increases in policies being written by private medical insurers as being a sign that demand will continue to be robust.

It declared its key focuses for the year to be further expansion of its mental health and private GP services, and investing in its workforce, an area in which the company acknowledged difficulties due to the UK’s shortage of skilled healthcare staff.

Spire Healthcare’s chief financial officer (CFO), Jitesh Sodha, will step down from the board following its annual general meeting in May having joined in 2018. Harbant Samra, currently the firm’s deputy CFO, has been appointed as Sodha’s successor.