It has done this while keeping the net debt constant. This cash control results in Nuffield Health’s leverage ratio of 3.3 being one of the lowest in its areas of operation.
The combination of a difficult economic background and increased competition in all markets made for a challenging year. Nonetheless it performed satisfactorily overall, delivering a like for like revenue growth of 3% on 2012 to £650m with EBITDA for its continuing activities at £72m – a fall of 8% on 2012.
Although EBITDA fell, the not-for-profit remained focussed and made significant investments to support its overall strategy.
A steady year for Nuffield Health’s Hospitals Division saw revenues for continuing activities increase by one per cent on 2012, driven primarily by the growth in NHS activity. The hospital portfolio has seen significant investment once again in 2013, with £44million ploughed into the improvement and expansion of facilities. This includes:
- Completion of the new Chesterfield Hospital in Bristol
- Completion of refurbishment at Brentwood, Brighton and Wessex Hospitals
- Equipping hospitals with latest technology minimally invasive endoscopy equipment
- Installation of digital technology into hospital operating theatres
Additionally, work has commenced in Cambridge to build a cutting edge hospital on the current Cambridge Hospital site.
In a tough Wellbeing market, Nuffield Health’s revenue increased by 5% to £204million. Nuffield Health continued to invest with £12million used to ‘refresh’ 32 fitness and wellbeing sites – a major project which will significantly differentiate the centres from high street gym chains.
The introduction of a Wellbeing Membership has been well received and is steadily growing, with figures reporting significantly higher levels of retention and improved net promoter scores.
The multi-million pound investment into the digital app, Nuffield HealthScore™ - a unique health app which supports customers in leading healthy lifestyles through monitoring personal health - ended the year with over 35,000 registered users.
On the corporate side, Nuffield Health’s Wellbeing business excelled in 2013, with revenue increasing to £76million (up by £8million on 2012). Nuffield Health remains the leading corporate provider of healthcare in the UK, working with almost 200 sites, and in 2013 services were extended into the provision of fitness facilities for schools and colleges.
Nuffield Health has continued with its prudent approach to asset valuation. The asset value at Group and Divisional level, as a portfolio, is substantially in excess of their book value. However the accounts do not reflect the market value of the freehold estate - £850million compared with a net book value of £490million.
Accounting standards require the non-profit organisation to undertake the impairment valuation on a site by site basis and this is a prudent approach to asset calculation which has resulted in a £28million charge in this year. Although material, this does not impact the cash generated from the business nor the fundamental strategy of Nuffield Health.
David Mobbs, Group Chief Executive, said:
“2013 has undoubtedly been a tough year, and one in which we have faced numerous challenges. Overall, the business has performed satisfactorily and despite the challenges we have seen marginal growth since 2012.
Our finances remain solid and this has allowed us to use 2013 to focus on re-building for the future. Through the improvement and modernisation of existing services, entry into new markets, including education, and the development of exciting new technologies we are setting new benchmarks in healthcare to set us apart from our competitors moving into 2014.
We continue to focus on our vision of ‘joined up healthcare’ with a view to reaching an even wider number of communities to offer fitness and wellbeing services in order to prevent long term poor health.”
Throughout 2013 the not-for-profit strengthened its offering with a series of compelling and impactful initiatives to champion and empower the health consumer, including a market leading stance on providing transparent pricing and clinical data and a unique Promise of life-time care for patients following surgery.
In 2013 we also reaffirmed our commitment to nursing care, with the introduction of the Nuffield Way of Caring – an initiative to further enhance and empower the role of the Matron in a hospital setting, which we believe will raise the bar in UK nursing care.
In addition, Nuffield Health Fitness and Wellbeing Centre, Nottingham was an award winner in the Premium Club category at the National Members’ Choice Health Club Awards 2013, the only awards in the industry where winners are selected purely on the feedback from the people that use the facilities. Nuffield Health was also named the Best Workplace Wellbeing Provider at the 2013 Health Insurance Awards.
Russell Hardy, Chair of Nuffield Health’s Board of Governors, said:
“While 2013 has been challenging in some areas, there are many positives to take. The success of the corporate wellbeing division in particular is a fantastic achievement in the current economic climate and a testament to the hard work of the staff involved.
Given that the not-for-profit has managed to grow during 2013 combined with huge investment in current and new facilities and services stands us in good stead for the future.
We can now push on into 2014 and continue our pioneering approach to finding new and innovative ways to help improve the health of the nation.”
Last updated Tuesday 22 March 2016
First published on Tuesday 10 June 2014