LONDON (Alliance News) - Spire Healthcare Group PLC on Tuesday said it expects to record broadly flat revenue for 2018, recovering somewhat from a weak first half.
Shares in Spire were down 11% at 103.44 pence on Tuesday morning in London.
The private hospital operator - in which London- and Johannesburg-listed Mediclinic International PLC holds just under a 30% stake - expects to post revenue of around GBP931 million for 2018, having reported GBP931.7 million in revenue the year before.
Spire expects earnings before interest, taxation, depreciation and amortization before exceptional and other items will be between GBP119 million and GBP120 million, compared to GBP150 million in 2017.
This Ebitda guidance range for 2018 has been lowered from the GBP120 million to GBP125 million issued in September.
Spire said its cash position improved over 2018 due to "strong cash conversion" and its net debt feel to approximately GBP457 million on December 31 from GBP462.8 million the year prior. The company's year-end net debt to Ebitda ratio was less than 3.7 times.
"The company achieved good strategic progress during 2018. As at December 31 76% of Spire's hospitals were rated Outstanding or Good by the [Care Quality Commission], up from 67% at the previous year end. There was also momentum in private payer growth," Spire said.
Spire's annual results will be announced February 28, alongside its strategic and operational progress reports and guidance for 2019.
Shares in Mediclinic were down 2.4% at 319.10p in London on Tuesday, while in Johannesburg the stock was 2.4% lower at ZAR56.92.