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.


Total full year revenue at Millennium & Copthorne Hotels declined by 6.4 per cent in 2012, despite an increase in revenue per available room (RevPAR).

Total revenue fell from £820.5m to £768.3m, while RevPAR on a constant currency basis rose 3.9% from £64.81 to £67.32, primarily because of higher average room rate, with a good performance seen in Singapore, Rest of Asia and London. Revenue from hotels alone dropped 2.1%.

On a like-for-like, constant currency basis, revenue rose 1.1% to £762.0m (2011: £753.8m).

Reported headline operating profit slid 14.7% to £163.3m, but on a like-for-like basis in constant currency terms increased by 6.6% to £158.9m (2011: £149.0m).

Headline profit before tax declined 14.6% to £157.7m.

Chairman Kwek Leng Beng said: "The group increased RevPAR, kept firm control of costs and strengthened its financial position in 2012. Revenue and headline pre-tax profit increased on a like-for-like, constant currency basis, and our hotels achieved good operating profit margins.

"Our asset management programme is building momentum and laying a strong foundation for future growth, supported by further strengthening of the management team.

"Our operating strategy was consistent with previous years, with sales teams focused on achieving an optimal balance between occupancy and average room rate across the estate.

"Management continued to achieve good levels of profitability despite a more challenging trading environment in the second half of 2012, with some regions seeing signs of economic uncertainty affecting personal and corporate hospitality budgets. Our consolidated hotel gross operating profit margin for the year was 38.5% (2011: 38.7%)."

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