Circle Holdings profits beat expectations

Circle Holdings shares surged Friday after the healthcare provider said 2012 revenues and profits exceeded expectations.

The employee co-owned hospital group expects annual revenue from continuing facilities to increase by 13% to £73m as patient procedures rose 21% year-on-year, according to a trading update.

Circle ended the year with a cash position of £38m, including £5.0m of restricted cash.

Results were driven by strong operating performance and higher patient volumes at hospitals.

The CircleBath private hospital saw a 28% growth in revenue and a 40% increase patient volumes while the CircleReading hospital delivered strong revenues since opening last August.

The company also achieved a projected annual cost savings of £2-3m following restructuring of its head office.

Circle recently announced it was selected as the preferred bidder by National Health Service (NHS) commissioners to provide renewed services at the Nottingham NHS Treatment Centre for a further five years from July.

Subject to completion of final terms, the contract is expected to deliver circa £15m annually.

Shares rose 5.43% to 68.00p at 9:19 Friday.

RD