patient satisfaction rating of good, very good or excellent (Patient satisfaction survey carried out by Howard Warwick & Associates, Jan - Sept 2009)
Directors’ report for financial statements
General Healthcare Group has produced strong revenue and profit growth during a
challenging year. Stripping out discontinued ISTC contracts and the Transform and Abbey
acquisitions, revenue has increased 2.6% from 2009 levels which, slightly offset by more
NHS cases, has seen its EBITDA margin increase from 26.2% to 26.3%. This generated
EBITDA of £222.1m, up from £220.6m in 2009.
Corporate finance activities
During 2010 General Healthcare Group has strengthened its position as the leading
private healthcare provider in the UK. The group has broadened its geographical
coverage and improved its performance through a strategic investment in the
Transform group and acquisitions of Phoenix Hospital Group in central London,
Southend Private Hospital in Essex and Abbey Hospitals. In addition to these
acquisitions, two new ventures were started in the form of Syon Clinic in Brentford and
Coombe Wing in Kingston.
In addition, the group acquired SterilPlus, which comprises three decontamination units
in Glasgow, Manchester and Radlett. GHG acquired SterilPlus on the back of a decision
by Vanguard AG to divest itself of its UK interests. SterilPlus will deliver the
‘gold standard’ service for instrument decontamination.
Pheonix Hospital Group has two hospitals. The consulting and diagnostic centre at 9
Harley Street has eight consulting rooms, four treatments rooms and a complete diagnostic
imaging suite. The Weymouth Hospital has 17 beds and four theatres. Phoenix Hospital
Group brings a unique, modern approach to providing private hospital healthcare
in London.
Southend Private Hospital is a purpose-built specialist day case facility with two full
theatres and a range of consulting and treatment rooms.
Transform Group is the UK’s number one cosmetic surgery group with 24 clinics operating out of the London, Manchester and Scotland regions.
The Abbey Hospitals are made up of Gisburn Park Hospital in Lancashire, Sefton Hospital in Liverpool and King’s Park
Hospital in Stirling. They offer a range of specialist and general surgery together with physiotherapy departments. They also
undertake a range of contracts for a number of NHS Trusts and PCTs.
Financing and treasury transactions
No significant debt refinancing occurred during the year and there is no requirement for any refinancing in the foreseeable future.
Operating performance
Revenue growth was driven by a rise in caseload. Despite an increase in the mix of NHS cases,
the continuing operations margin has improved, reflecting the ongoing efficiency programme.
The increase in EBITDA has fallen directly to the bottom line, represented by a £2m increase in
profit before tax. Interest and finance charges have remained stable due to the swapping out of
the variable loan interest rate for a fixed interest rate. The marginal decrease in finance charges
is due to the debt amortisation during the current year.
The group generated £175 million of operating cash flow, representing a cash conversion of
78%. This improved from 61% last year due to the improved debt collection rates.
