Nuffield Health refinances to pursue long-term goals

By Frances Marcellin    27 Oct 2022

Nuffield Health has completed a five-year refinancing package with NatWest, HSBC, Barclays and Santander UK.
/ Nuffield Health

Nuffield Health has completed a five-year refinancing package with NatWest, HSBC, Barclays and Santander UK. KPMG UK advised on the deal which also included a longer-term financing solution for ten hospital sites with Song Capital, in partnership with Alpha Real Capital.

In 2021, Nuffield Health supported more than 1.21m people across its network of 114 corporate fitness and wellbeing sites, 37 hospitals and numerous medical units. The financing package will enable the charity to support its ESG (environmental, social, and governance) goals. These include being carbon net zero by 2040, reducing the gender pay gap and social returns on investment. In 2021, the social return on investment was £18m (US$21m). If the targets are met, the charity will be eligible for a sustainability-related rebate on the interest rate paid on their bank facilities.

“Sustainability is a core part of our purpose to build a healthier nation, so we’re pleased to have agreed new ESG targets with responsible lenders within these arrangements,” said Jenny Dillon, Nuffield Health’s chief financial officer. “We have an ambitious strategy to be the first national health and fitness organisation to be net zero by 2040, and the package announced today demonstrates our commitment to achieving this.”

As a trading charity, all Nuffield Health’s income is invested into its programmes. In the UK, 11.3 per cent of people use two or more of the charity’s services, which include hospital care, personal training, physiotherapy, GP advice, workplace wellbeing, health assessments and fitness classes.

Overall in 2021, it supported 329,000 fitness and wellness members and delivered 58,000 health assessments – and 100 per cent of the charity’s directly purchased electricity is from renewable sources.

Last year Nuffield Health saw strong growth as it moved closer to exiting the pandemic and by the end of 2021 fitness and wellbeing memberships were around 50 per cent higher than when centres reopened at the end of Q1.

Turnover was £989m in 2021, compared with £780m in 2020, and the EBITDA was up to £78m in 2021 from £14m in 2020.

“We’re delighted to have advised Nuffield Health on their new financing package, which gives them a strong platform from which to deliver their charitable objectives,” said Simon Mower, debt advisory director at KPMG UK. “Their purpose is centered around building a healthier nation, with a clear focus on ESG, and this long-term financing enables the team to deliver on their strategy.”

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