BUPA predicts slow second half

Source: Exec Digital

Date :20/09/2007 11:09:48

BUPA has said that it expects its rate of growth to ease in the second half.

The health and social care provider who reported a 47 percent rise in its interim tax surplus earlier this week said that profits would slow as it increases investment across its core businesses following the sale of its hospital operations to Cinven in August.

The group's UK insurance business, which provides private medical insurance to 4.3 million customers, saw revenues up by 5 percent to £956.6 million.

Despite this, operating profits at the division declined by £9.6 million to £28.4 million due to higher claims levels and increased investment.

In a statement, Chief Executive Val Gooding said: “This investment and an anticipated return to historical claims levels in International Insurance will slow the rate of growth in underlying surplus in the second half.”

Refurbishment

The group plans to increase investment in its care homes in the second half as part of significant extension and refurbishment programmes.

It is to be rebranded Spire Healthcare under the new Cinven ownership.

September 20 2007

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