Spire Healthcare eyes boost from longer NHS waiting lists

NHS waiting lists stretching ever longer will boost growth at Spire Healthcare, the private hospitals chain said, as it outlined expansion plans.

Executive chairman Garry Watts said that, regardless of Brexit, “NHS funding constraints will continue to put pressure on waiting-list targets and the provision of a fully unrestricted, unrationed service to the UK public”.

Increased demand for healthcare, which is also being fuelled by Britain’s growing, ageing population, helped revenues to climb 4.4% to £469.5 million in the first half. Shares rose 1p to 344p.

Spire will splash out up to £190 million this financial year as it looks to take advantage of growing demand for cancer care and cardiac treatment.

Watts told the Evening Standard that Spire wants to build its first London hospital in zone 1 as soon as a suitable site is found: “We would be attractive to the big employers and recognise there is an opportunity to grow here.”

He declined to comment on market rumours of a possible takeover by Spire’s largest shareholder Mediclinic.

Analysts at JPMorgan Cazenove said: “In the medium term, we believe Spire offers investors a defensive profile coupled with growth potential.”