UK's Spire Healthcare H1 hit by lower NHS activity, higher costs

Overview

• UK healthcare provider's H1 revenue dipped 0.8% as NHS activity declined

• Adjusted EBITDA for H1 fell 16.6%, reflecting cost inflation and lower NHS revenue

• Adjusted free cash flow rose 35.3% on improved capital efficiency and lower capex

Outlook

• Spire Healthcare continues to target FY26 adjusted EBITDA broadly in line with FY25

• Company says demand for independent healthcare remains strong, with growth in private payor revenues

• Spire Healthcare says visibility over NHS activity remains strong, with >95% of 2026/27 plan revenue agreed

Result Drivers

• NHS REVENUE DECLINE - Lower NHS activity, especially a 24.9% drop in Q1, weighed on overall revenue and profitability

• PRIVATE PAYOR GROWTH - Self-Pay and PMI revenues rose, supported by commercial initiatives and continued demand for private healthcare

• COST INFLATION - Profitability was pressured by inflation across a largely fixed cost base, limiting the ability to offset NHS revenue shortfall

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for Spire Healthcare Group PLC is GBp262.50, about 6.9% above its September 29 closing price of GBp245.50

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 22 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)