Spire Healthcare Group Plc · LSE:SPI
Spire Healthcare — H1 2025 Earnings Presentation
39 slides from Spire Healthcare's earnings presentation, Jul 31, 2025
Slide 1: Interim 2025 Results
Interim 2025 Results 31 July 2025
Slide 2: Forward-looking statements
These materials contain certain forward-looking statements relating to the business of Spire Healthcare Group plc (the “Company”), including with respect to the progress, timing and completion of the Company’s development, the Company’s ability to treat, attract, and retain patients and customers, i
Slide 3: H1 2025: Delivering today, transforming for our future
H1 2025 Delivering today, transforming for our future Justin Ash, Group CEO of Spire Healthcare
Slide 4: Delivering today, transforming for our future
Delivering today, transforming for our future Outcome H1 performance delivered on track while implementing significant transformation Action & Diversified three-payor strategy Transformation Transformation Scaling Primary Care Maintaining focus on quality and innovation Strategy and transformation o
Slide 5: Thank you
© Thank you QZ Spire Healthcare
Slide 6: Financial update
Financial update Harbant Samra, Group CFO of Spire Healthcare
Slide 7: H125 delivery in-line with market expectations
Group H125 delivery in-line with market expectations H1 25 outturn2 Group revenue growth +4.9%, of which Hospital 4.7% y/y Ex NI & NMW rises Group adj.EBITDA1 £133.8m, +2.8% y/y (margin 16.8%) Growth & EBITDA >5% y/y efficiency Cost savings >£10m Group adj. PBT £23.8m, (11.2)% y/y Savings: H2 weight
Slide 8: Good Hospital performance: transformation programmes set the stage for H2
pit Hos als Good Hospital performance: transformation programmes set the stage for further savings in H2 and beyond £732.3m £ £130.0m £ £74.5m + 4.7% y/y2 + 3.3% y/y2 + 2.2% y/y2 Revenue Adj. EBITDA1 Margin 17.8% Adj. EBIT1 Margin 10.2% >5% growth target affirmed2 EBITDA reflects phasing of savings
Slide 9: Private patients: revenue supported by price and mix management
pit Hos als Private patients: revenue supported by price and mix management Private patient KPIs Positives y/y change1 • Effective price + mix strategy. PMI ARPC +5.4%1 and Self-Pay ARPC +4.2%1 • SP volume trend improving vs FY24 exit rate Revenue +0.8% • Long-term fundamentals supporting Private de
Slide 10: NHS patients: revenue driven by strong volume growth with high acuity
pit Hos als NHS patients: revenue driven by strong volume growth with high acuity NHS patient KPIs Positives y/y change1 • ARPC growth of 4.2%1 reflects our focus on high acuity vs average tariff growth of c.3.4%2 • Strong volume growth reflects Government commitment to reducing Revenue +16.2% long
Slide 11: Spire has gained share in the Private market
pit Hos als Spire has gained share in the Private market Spire growing greatest share of Private admission volumes to end 2024 1 Focused sites where we are driving and maintaining share 50% Spire: +0.8% vs 2021 40% 30% Competitor A: (1.3)% vs 2021 Competitor B: +0.2% vs 2021 20% 2021 2022 2023 2024
Slide 12: Spire continues to lead in the high acuity hip and knee market
pit Hos als Spire continues to lead in the high acuity hip and knee market 12
Slide 13: Primary Care: EBITDA growth of >6% y/y excluding startup clinics
ary car rim e P Primary Care: EBITDA growth of >6% y/y excluding startup clinics £64.4m £ £3.8m £ £1.5m + 6.5% y/y3 (14.0)% y/y3 (44.0)% y/y3 Revenue Adj. EBITDA2 Margin 5.9% Adj. EBIT2 Margin 2.3% Strong revenue EBITDA reflects impact of new Clinics EBIT drop-through as expected • Driven by Talking
Slide 14: Transformation already deployed to deliver significant H2 benefit
Group Transformation already deployed to deliver significant H2 benefit Transformation savings weighted to H2 Two major programmes in H125 >£30m savings on track for year-end • More flexible clinically-led Hospital resourcing • c.400 colleague reduction from July/ August H2 new • Centralised patient
Slide 15: Investment focused on growth, with strong returns and fast payback
Group Investment focused on growth, with strong returns and fast payback 7% of Group Rev Improve Returns > c.£13m patient Hurdle rate experience 6% of Group Rev c.£40m H125 Group capex £51.2m H125 growth/ efficiency capex: c.£27m 6% of Group rev • Patient Support Centre fitouts c.£1m • Automation/di
Slide 16: Focus on growing returns, supported by a strong balance sheet
Group Focus on growing returns, supported by a strong balance sheet with >£1.4bn in property freehold Return on capital employed1 Medium-term target: 8.1% >10% (8.3% excl. NI & NMW) 7.6% 6.9% 5.2% H122 H123 H124 H125 1. Return on capital employed (ROCE) is the ratio of the group’s adjusted EBIT to t
Slide 17: H1 FCF impacted by phasing and NHS growth
Group H1 FCF impacted by phasing and NHS growth Adjusted free cash flow £m H1 adjusted free cash flow impacted by : 1 Transformation benefits weighting 2 Capex weighting 18.6 20.4 15.3 3 NHS timing impact on working capital H124 H224 H125 17
Slide 18: Cash balance reflects savings and capex phasing, and one-offs
Group Cash balance reflects savings and capex phasing, and one-offs 13.9 One-off items: £m 34.7 20.8 Purchases for share Purchase remaining awards when share non-controlling price was low interest1 Cash balance One-off items Adj. cash balance £8.7m £5.2m (vs £3m p.a. typical) H125 H125 Bank 2.2x 2.1
Slide 19: FY outlook: currently trading in-line with market expectations
FY outlook: currently trading in-line with market expectations FY25 guidance unchanged Growth: payor changes managed effectively, with focus on price and mix. Good growth in Primary Care Mid-single digit y/y Group revenue growth Efficiency: delivered >£10m new savings, with programmes already deploy
Slide 20: Strategic update
Strategic update Justin Ash, Group CEO of Spire Healthcare
Slide 21: Our vision: building fully integrated scale across private healthcare
Our vision: building fully integrated scale across private healthcare Primary Care Hospital Care Ageing What we offer: H population Cross-referrals Fast Health awareness Quality • Talking Therapies, Occ Health, Physio, GP • Elective operative care NHS Integrated • Preventative care/ early diagnostic
Slide 22: Evolving to become a more efficient, integrated healthcare business
Evolving to become a more efficient, integrated healthcare business + + Diversified three- Scaling Transformation payor strategy Primary Care Maintaining focus on quality and innovation 22
Slide 23: Payor mix managed more effectively with growth and margin levers
Payor mix managed more effectively with growth and margin levers 1 Increase high margin procedures 2 Grow high acuity within NHS Top 3 margin specialties as % of private admissions Orthopaedics as % of total NHS admissions >38% >60% mix mix FY22 FY23 FY24 H125 FY22 FY23 FY24 H125 3 Optimise Hospital
Slide 24: Transformation: improve experience, lower cost, maintain quality
Transformation: improve experience, lower cost, maintain quality Goals H1 actions Outcome Digitise, centralise and Consolidated 36 hospitals’ admin Patients: faster access ‘One Best Way’ functions into 3 Patient Support Centres Consultants: easier partnership Clinically-led Flexible Hospital resourc
Slide 25: Patient Support Centres: transforming patient pathway management
Patient Support Centres: transforming patient pathway management Regional PSCs will underpin growth and efficiency in FY25 and beyond Growth Answering 50% more calls. Improved visibility of consultant diaries Efficiency c.10% reduction in staffing Capacity Repurposing the admin space in Hospital to
Slide 26: Scaling Primary Care to a £40m EBITDA business over the medium term
Scaling Primary Care to a £40m EBITDA business over the medium term Financial profile Our delivery • Core business underpinned by existing long- • Commenced multiple long-term contracts Organic growth term contracts and new tenders worth c.£8m in annual revenue • Scale delivers medium-term margin gr
Slide 27: Maintaining focus on quality and innovation
Maintaining focus on quality and innovation H1 achievements 98% Hospitals rated ‘Good’, • Highly commended by Thrombosis UK for VTE ‘Outstanding’ or equivalent1 prevention. Our contribution 97% 84% Hospital patients consultants rated to DHSC Patient Safety Review considered best practice rated exper
Slide 28: Delivering today, transforming for our future
Delivering today, transforming for our future Significant change delivered; more flexible, responsive and efficient Our strategy positions us well to manage a dynamic market Well invested estate supported by >£1.4bn freehold valuation A successful and valuable business 28
Slide 29: Q&A
Q&A
Slide 30: Appendix
Appendix QZ Spire Healthcare
Slide 31: FY25 guidance
Group FY25 guidance Our guidance for FY25 Group revenue growth Mid-single digit % y/y Group adjusted EBITDA1 £270m – £285m ROCE1 Ahead of last year incl. absorbing NI, NMW, payor mix and energy - £(30)m impact Group bank debt leverage1 c.2x (ahead of any M&A) at year end Dividend Policy maintained a
Slide 32: FY25 technical guidance
Group FY25 technical guidance Technical guidance for 2025 Property lease payments c.£102m – £108m (FY24: £99.2m) Depreciation and amortisation c.£115m – £122m (FY24: £112.2m) Capex1 c.£90m – £100m (FY24: £99.1m) Net financing costs c.£103m – £108m (FY24: £99.2m) Tax2 Effective corporation tax rate b
Slide 33: Payor group volumes, ARPC, revenue
pit Hos als Payor group volumes, ARPC, revenue PMI Self-pay NHS1 H122 H123 H124 H125 H122 H123 H124 H125 H122 H123 H124 H125 Admissions and OP Procedures (‘000s) 93.8 105.6 111.7 110.0 57.3 54.9 50.8 47.8 58.7 62.3 63.1 70.9 ARPC (£) 2,729 2,870 2,992 3,157 3,961 4,297 4,618 4,818 3,090 3,298 3,509
Slide 34: Cash and borrowings
Group Cash and borrowings £m 31 Dec 21 31 Dec 22 31 Dec 23 31 Dec 24 30 Jun 25 £m 31 Dec 21 31 Dec 22 31 Dec 23 31 Dec 24 30 Jun 25 Bank borrowings 427.5 324.3 365.3 367.1 377.5 Bank borrowings 427.5 324.4 365.3 367.1 377.5 Lease liabilities Cash 202.6 74.2 49.6 41.2 20.8 837.8 866.5 891.7 912.8 915
Slide 35: Adjusting items largely driven by transformation restructuring
Group Adjusting items largely driven by transformation restructuring £m H1 24 H1 25 Profit after tax before adjusting items 19.6 17.1 Adjusting items Business reorganisation and restructuring (1.8) (9.6) Transformation linked Asset acquisitions, disposals & aborted project costs and clinic set up co
Slide 36: H1 adjusted EBITDA to profit bridge
Group H1 adjusted EBITDA to profit bridge Benefitting from only >£10m of full-year >£30m savings £m Broadly 50/50 split Largely reflects restructuring between H1 and H2 (£9.6m); total expected to be 110.0 c.50% lower in H2 133.8 23.8 13.0 10.8 Adjusted D&A and finance costs Adjusted profit Adjusting
Slide 37: NHS waiting lists stood at 7.36 million in May 2025
Group NHS waiting lists stood at 7.36 million in May 2025 8m 7m Waiting <18 weeks Wating 18-52 weeks 6m Waiting >52 weeks Size of Waiting List 5m 4m 3m 2m 1m 0m May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 May-19 May-20 May-21 May-22 May-23 May-24 May-25 Source: NHS England https://www.en
Slide 38: Alternative performance measures definitions
Group Alternative performance measures definitions Performance measure Definition Purpose Adjusted operating profit; or Operating profit, less adjusting items before interest and tax. Provides a comparable measure of operating profit performance over time. adjusted EBIT Conversion of adjusted EBITDA
Slide 39: Alternative performance measures definitions (continued)
Group Alternative performance measures definitions (continued) Performance measure Definition Purpose Return on Capital Employed Adjusted EBIT divided by capital employed. Assess the efficiency in generating profits as a percentage of the total capital used. (ROCE) Earnings per share (EPS) Profit af
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