Spire Healthcare achieved strong earnings growth last year, helped by an increase in self-pay procedures.
The company reported an operating profit of £134 million for the year ended 31 December 2011, up 9.2% on the previous year. Revenues rose by 4.8% in the period to £674 million.
Spire said the NHS budget squeeze and rising waiting lists were increasing the demand for procedures from self-paying customers. Direct NHS spending through patient referrals also held up well, accounting for around 20% of Spire’s revenues in 2011.
The group’s ebitdar (earnings before interest, tax, depreciation, amortisation and rental payments) rose by 10.8% to £188 million, while ebitdar margins improved to 27.9% (2010: 26.4%).
Despite the growth, Spire declared a pre-tax loss of £49 million (2010: £51 million) as a result of the funding structure put in place in 2007 by its private equity owner Cinven. Net bank debt at 31 December 2011 was £1.19 billion (2010: £1.24 billion).
Rob Roger, chief executive of Spire, said: “These results demonstrate that Spire’s focus on clinical excellence has resulted in a strong and growing business. Spire is highly cash generative and is able to invest significant sums every year in improving both the quality and the range of our services. We look to the future with confidence.”