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• Group Revenue Growth: Over 6% on a comparable basis.

• Hospital Revenue Growth: Increased by 5.5% to GBP1.4 billion.

• Adjusted EBITDA: GBP260 million, up 9%.

• Adjusted Profit Before Tax (PBT): GBP50 million, growing over 29%.

• NHS Referrals Growth: 8.8% increase.

• Efficiency Program Savings: Over GBP20 million in 2024, targeting GBP80 million by 2026.

• Primary Care Revenue: GBP121 million, a 15% increase on a pro forma basis.

• Vita Revenue: GBP107.4 million with an adjusted EBITDA of GBP11 million.

• Adjusted EBITDA Margin: Improved by 30 basis points to 18% in the Hospital business.

• Private Revenue Growth: 4.3% with a 3.9% increase in average revenue per case (ARPC).

• NHS Revenue Growth: 8.8% with a 5% uplift in ARPC.

• Capital Expenditure (CapEx): GBP99 million in hospitals, GBP13 million in Primary Care.

• Freehold Portfolio Valuation: GBP1.4 billion.

• Dividend Increase: Recommended increase to 2.3p per share.

• 2025 Revenue Growth Expectation: Mid-single digit growth with adjusted EBITDA between GBP270 million to GBP285 million.

• Warning! GuruFocus has detected 5 Warning Signs with LSE:SPI.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Spire Healthcare Group PLC (LSE:SPI) reported a strong financial performance with group revenues up over 6% and hospital revenues increasing by 5.5%.

• The company achieved an adjusted EBITDA of GBP260 million, marking a 9% increase, and adjusted profit before tax grew by over 29%.

• NHS referrals accelerated to 8.8% growth, and the company focused on high acuity procedures, which helped drive capacity utilization.

• The efficiency program exceeded expectations, delivering over GBP20 million in savings, surpassing the initial guidance of GBP15 million.

• Spire Healthcare Group PLC expanded its Primary Care business by over 15%, supported by the outperformance of Vita, and secured GBP90 million in long-term contracts.

Negative Points

• The company faces significant cost increases in 2025, including GBP30 million due to national insurance, minimum wage hikes, and rising energy costs.

• There was a decline in Self-Pay admissions, which accelerated in the second half of the year, impacting revenue from this segment.

• The NHS mix in the second half led to a margin impact, as the company had to adjust to the higher demand for NHS services.

• Spire Healthcare Group PLC anticipates challenges in maintaining margins due to the changing payor mix and cost pressures.

• The company is facing a dynamic external environment, including changes in payor mix and the end of its energy hedge, which could impact future financial performance.