Sunak increases healthcare spending by £44 bn: 2 stocks to buy

Highlights 

  • Chancellor Rishi Sunak said the government plans to increase resource spending in the healthcare sector by £44 billion to over £177 billion.
  • Sunak had last week unveiled the government’s plans to invest £5 billion towards health research and innovation.

The UK’s chancellor of exchequer, Rishi Sunak, boosted the UK’s resource expenditure on the healthcare sector in the Autumn Budget announced today.

As per the latest spending review, the resource spending in the healthcare sector will increase by £44 billion to over £177 billion, from its current spend of £133 billion (US$ 183 billion).

Sunak increases healthcare spending by £44 bn 2 stocks to buy

Last week, the chancellor had also unveiled several pledges ahead of the budget, which included a £5 billion pledge towards health research and innovation.

Let us take a look at 2 FTSE listed stocks in the healthcare sector and how they reacted to the development:

  1. Spire Healthcare Group PLC (LON: SPI)

FTSE 250 index firm Spire Healthcare Group is a UK based independent hospital group.

The company recently acquired an 87 per cent stake in the operating assets of Claremont Private Hospital in Sheffield, which is set to come under the group’s network by later this month or in early November.

The deal is worth up to £15.7 million and will be paid in cash. Spire will acquire the assets from its current owner, Aspen Healthcare.

The group’s FY 2021 revenue rose by 38.9 per cent to £558.2 million, from £401.9 million in FY 2020.

Spire’s share price and volume

(Image source: Refinitiv)

Spire’s shares were trading at GBX 236.00, up by 0.86 per cent on 27 October at 13:53 hrs BST. Comparatively, the FTSE 250 index was at 23,203.16, up by 0.18 per cent.

The group’s market cap stood at £938.56 million, and its one-year return was at 98.74 per cent as of 27 October.

  1. Craneware plc (LON: CRW)

FTSE AIM 100 index firm Craneware is a leading automated value cycle solutions provider for healthcare organisations, which aid in improving financial performance.

The group’s FY 2021 revenue rose by 6 per cent to US$ 75.6 million, from US$ 71.5 million in FY 2020.

Also, its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 8 per cent to US$ 27.1 million, from US$ 25.2 million in FY 2020.

Spire’s share price and volume

(Image source: Refinitiv)

Craneware’s shares were trading at GBX 2,315.00, up by 0.65 per cent on 27 October at 14: 02 hrs BST. Comparatively, the FTSE AIM 100 index was at 6,033.01, down by 0.27 per cent.

The group’s market cap stood at £ 817.11 million, and its one-year return was at 46.48 per cent as of 27 October.

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