Spire Healthcare Share Discussion Threads

[rob the slob] 06/8/2018 15:30

Love the honest subtitles. ? If only i loved the trading statement too ?

[analyst] 06/8/2018 14:55

Spire Healthcare Group plc (LSE: SPI), the major UK independent hospital group, provides the following trading update. Having reviewed results for the period 1 January 2018 to 31 July 2018, and assessed likely market conditions for the balance of the financial year, the Company announces that it now expects EBITDA for the full financial year 2018 to be materially lower than for 2017. [YOU DON'T USE PHRASES LIKE "MATERIALLY LOWER" WITHOUT BEING SERIOUSLY WORRIED.]

Unaudited provisional results for H1 2018

-- Capital expenditure was GBP34 million (H1 2017: GBP59.5 million). {WE'RE LETTING THE INFRASTRUCTURE AGE WITHOUT BEING UPDATED - THE HOSPITALS WILL HAVE AN INCREASINGLY GRUBBY OLD-FASHIONED APPEARANCE AND OUR EQUIPMENT WILL NOT BE 'STATE OF THE ART']
-- Net debt at 30 June 2018 stood at approximately GBP458 million (H1 2017: GBP436.1 million). [WE'VE SPENT LESS CAPITAL YET HAVE A BIGGER OVERDRAFT = WE'VE PAID OUT MILLIONS AS A RESULT OF THE SURGEON "PATERSON" CASE AND WE'RE SPENDING MORE ON STAFF COSTS]

Comment on H1 and H2 2018

In H1 2018, Self-Pay revenues increased 8.3%, PMI revenues increased 0.9% [PUNTERS HAVE RECOGNISED THEY'RE BEING RIPPED OFF BY INSURERS, SOME OF WHOM REFUSE TO COVER THE FEES OF DOCTORS AND SURGEONS THAT CHARGE MORE THAN INSURERS ARE PREPARED TO REIMBURSE {BUPA HAS NOT INCREASED ITS SURGEON FEES FOR OVER 25 YEARS} AND WILL NOT ALLOW INSURED PATIENTS TO PAY A TOP-UP TO THE DOCTOR OF THEIR CHOICE, SO ARE PAYING FOR CARE DIRECTLY] and NHS revenues decreased 9.5% [THAT'S JUST THE EFFECT IN RECENT WEEKS AVERAGED OVER 6 MONTHS, THE NHS HAS REDUCED DEPENDENCE ON PRIVATE PROVIDERS MUCH MORE THAN THAT]. Overall, private revenues grew by 2.9% [NO TANGIBLE REAL GROWTH ABOVE INFLATION]. Draft results for July 2018 show a return to revenue growth as anticipated, albeit lower than planned.

We continue to expect private payor revenue growth in H2 2018, and to see benefit from our investments in telephony and central marketing, and our evolving relations with PMI payors [WE'RE BEING SQUEEZED ON HOSPITAL CHARGES BY INSURERS]. That growth will be impacted, however, by continuing weakness in the NHS business where we see new signs of further NHS triaging and rationing in H2 2018, especially in orthopaedics as Clinical Commissioning Groups tighten their approach towards managing waiting lists. [NHS IS CUTTING ITS WAITING LISTS BY REFUSING TO PUT PATIENTS ONTO THE LIST, NOT BY DOING OPERATIONS ON THOSE WAITING]

We have invested significantly to improve our clinical quality [OUR QUALITY WAS RATHER POOR UPTO NOW] and to drive our private payor proposition [WE'VE HAD COMPLAINTS ABOUT QUALITY], including embedding new and enhanced standards [THE PATERSON CASE AGAIN], set and audited by our expanded clinical team [WE'VE EMPLOYED MORE PEOPLE TO GO AROUND WITH CLIPBOARDS TO CRITICISE AND CHIVVY UP OUR DEMORALISED STAFF INTO WORKING HARDER]. This is being effected with a number of one-off step-up costs [CLIPBOARDS AND PENS, SPREADSHEET DEVELOPERS, ETC ETC - NO ACTUAL CLINICAL STAFF], which in turn has led to overall hospital costs increasing ahead of our original estimates. The impact on earnings has therefore been more marked than anticipated.

In parallel we have identified and initiated substantial cost saving exercises in other areas of the business, including central functions [REDUNDANCIES?] and procurement [CHEAPER NASTY BOG-ROLLS]. These savings are expected to have a significant impact on our cost base from 2019 onwards, with some benefit in H2 2018.

Comment by Justin Ash, Chief Executive Officer

"The current difficult market conditions - also seen by other operators [WHATABOUTERY] - had a greater impact on our business in the seven months to 31 July 2018 than we had expected [WE CAN'T PLAN PROPERLY]. Nevertheless, through this transitional period we are relentlessly focused on raising our clinical quality to "best in sector" level and we believe this is beginning to bear fruit as a commercial differentiator. The recent achievement of an "Outstanding" CQC result at Spire Nottingham means that Spire now has four "Outstanding" hospitals out of only 14 in the entire independent sector, and all other CQC hospital or service inspections this year have been upgrades to "Good" [ONLY FOUR OF OUR 39 HOSPITALS ARE OUTSTANDING, DESPITE OUR SALES MESSAGE OF BEING A ROLLS-ROYCE SERVICE WORTH PAYING A PREMIUM FOR].

[minerve] 06/8/2018 14:30

Hi Essential

Long time no see. Hope all is well.

Would you invest at these levels especially considering the overwhelming demographic issues that face us medium to long term?

[essentialinvestor] 06/8/2018 14:28

Mentioned a few months not accepting the bid looked unwise,
I worked at BUPA for a number of years so know most of these
hospitals well. The sector faces significant recruitment issues currently
which is feeding through to cost pressures.

[che7win] 06/8/2018 14:14

Very poor management, they shouldn't have dismissed the previously takeover approach.

[anderson3] 06/8/2018 12:44

Any broker buy or sell recommendations after this announcement?

[minerve] 06/8/2018 12:22

Added 1st tranche.

[minerve] 06/8/2018 11:54

OK. On this drop I'm taking some for the SIPP.

[bountyhunter] 06/8/2018 11:33

Lol! Now would be a great opportunity for Mediclinic to bid again given today's share price reaction to revenues 1% down and the cost savings they could make.

[abcurtis] 06/8/2018 08:27

Gee I'm really glad they did not take the takeover offer

[tsmith2] 06/8/2018 08:23

Ebitda let alone real profits lower than 2017!don't even say how much, no revised forecast..

[bountyhunter] 06/8/2018 08:11

talk about an over reaction!

"Revenues were approximately GBP475 million, a decrease of 1.1% on H1 2017."

[eeza] 06/8/2018 07:21

RNS

TU update - profit warning.






Comment - "Hospital owner Spire Healthcare Group warned that it expected its full-year earnings to be materially lower than the previous year after revenue slipped in the first half and expenses rose."

[bountyhunter] 20/6/2018 18:03

Prudential now hold 5%

[bountyhunter] 18/6/2018 15:19

from the above:

"Berenberg's 290p price target is based on nine times EBITDA, which is the lowest multiple of its peers due to recent earnings volatility and momentum.

"However, should the company return to growth as we project, we think there could be a re-rating potentially doubling shares over a two-year period.""

[bountyhunter] 18/6/2018 13:46

Spire 'should benefit' from more NHS funding in medium-term
Mon 18 June 2018

link to the full article:

[bountyhunter] 31/5/2018 15:02

not bad for an XD day

[bountyhunter] 30/5/2018 21:20

XD tomorrow, 2.5p, every little helps

[bountyhunter] 27/5/2018 11:37

"just a question of when"

[dendria] 27/5/2018 11:04

Mail on Sunday - a 2nd bid? I don't think it's based on much more than the 6 month re-bid window has expired.

[bountyhunter] 25/5/2018 09:27

yes no point in talking themselves up to much if that is the case and they want to see it through, after picking up all those shares following the share price collapse after the last takeover offer rejection I can't see the BoD rejecting the same kind of offer if it happens again

[bountyhunter] 24/5/2018 23:21

I wouldn't take any notice of Woodford, in any case can you post a link so we can see the detail?