Spire Healthcare Group PLC on Thursday posted improved annual results but warned on its profit margin going forward, as the private healthcare provider faces staffing issues and cost pressure.

Spire declared its first dividend since the start of the pandemic, however.

Shares were 5.9% lower at 225.00 pence each in London on Thursday morning, amongst the worst mid-cap performers.

Spire’s revenue rose 8.3% to £1.20 billion in 2022 from £1.11 billion in 2021. It swung to a pretax profit of £3.9 million from a loss of £1.9 million in 2021.

It was a busy year for the London-based firm. It said admissions increased by 7.8% to 262,801 and average revenue per case climbed 10% to £3,179.

In addition, it struck deals with Bupa, to provide services to its health insurance customers, and it acquired occupational health firm Doctor’s Clinic for £12 million.

Since the end of 2022, it has struck deals with both Vitality and Aviva, Spire said.

Looking to 2023, it expects ‘continued top-line growth’ amid strong healthcare demand.

While Spire expects its margin to grow, it cautioned that ‘continuing inflation, staffing and agency cost pressures, and Covid/sickness may slow margin improvement’.

Spire’s adjusted earnings before interest, tax, depreciation and amortisation margin improved to 17.0% in 2022 from 16.1% in 2021.

More promisingly, it returned to the dividend list, declaring a 0.5p per share payout. Spire had not declared any dividends since the start of the Covid-19 pandemic in 2020.

‘As we outlined at our capital markets day, we have a clear and sustainable dividend policy whereby dividends will typically be set at 25% to 35% of profit after tax, provided bank leverage remains less than 2.5 times,’ Spire explained.

Copyright 2023 Alliance News Ltd. All Rights Reserved.