It’s not often that management talks up the challenges facing the business they head. But Spire Healthcare’s chief financial officer Jitesh Sodha went to great lengths to point out why increased clinical and other operating costs would hinder a return to historically stronger profit margins, in a three-page defence of its decision to recommend a bid from its rival Ramsay Health Care.
Since the 250p-a-share offer failed to win enough support in the shareholder vote this month, some heat remains in the private hospital operator’s share price. At 223p, the shares are trading at a near two-year high after a torrid performance in recent years.
The recovery rally did predate the takeover interest from its Australian rival. A higher proportion of self-paying patients and