39Spire Healthcare Limited PartnershipGeneral Partner's reportfor the year ended 31 December 2010The General Partner presents the report and the audited consolidated financial statements of Spire Healthcare Limited Partnership (the 'Partnership') for the year ended 31 December 2010. These financial statements include the results of Spire Heathcare Limited Partnership and its significant subsidiaries, as listed in note 11 to these accounts (the 'Group'). 1. Principal activity and results for the yearThe principal activity of the Group is the ownership and operation of private hospitals and the provision of private healthcare facilities. In 2010 the business comprised 37 hospitals in the UK and a number of healthcare centres, including London Fertility Centre and The London Cognitive Behaviour Therapy Centres, which were acquired during the year.Results The loss for the year, after taxation, amounted to £52.8 million (2009: £40.6 million).The Group has total assets of £2,158.6 million (2009: £2,107.7 million) and total liabilities of £2,515.2 million (2009: £2,381.7 million).Acquisitions On 29 March 2010, the Group acquired the entire share capital of London Fertility Centre Limited for a total consideration of £4.5 million. This amount was funded by means of bank loan facilities. In addition, on 7 October 2010 the Group acquired part of The London Cognitive Behaviour Therapy Centres Limited for £0.6 million, and other businesses were acquired during the year for an aggregate consideration of £1 million.2. Business reviewThe business review of the Group is contained on pages 16-23 of this Annual Review.3. Principal risks and uncertaintiesThe Group's activities expose it to a variety of business and financial risks and uncertainties. These are discussed on page 37 of the financial review.4. Ownership structureSpire Healthcare Limited Partnership is the parent undertaking of a number of separate corporate groups trading under the Spire Healthcare brand, which include:. Spire 1 (owning and operating 25 former Bupa hospitals, plus Spire Thames Valley Hospital, Spire Shawfair Park Hospital, London Fertility Centre and The London Cognitive Behaviour Therapy Centres). Spire 2 (ten former Classic hospitals)Spire 1 includes Spire Healthcare Group UK Limited, the Board of which has been invited by Spire Healthcare Limited Partnership to comment on the Group's performance in this report. Spire Healthcare Group UK Limited also hosts Spire's principal corporate governance functions, including Spire's audit and remuneration committees.Spire Healthcare Limited Partnership is controlled by funds managed and advised by Cinven, further details of which are contained in note 2 to these financial statements. Details of the current partners in Spire Healthcare Limited Partnership are given in Section 6 of this General Partner's report. Spire's senior management and certain employees hold units in Spire Healthcare Limited Partnership through one of the partners, the Rozier Employee Benefit Trust.The General Partner of Spire Healthcare Limited Partnership is Spire Healthcare (GP1) Limited, which has sole responsibility for the conduct and management of the business of Spire Healthcare Limited Partnership.

40Spire Healthcare Annual Review 2010Spire Healthcare Limited PartnershipGeneral Partner's reportfor the year ended 31 December 20105. Going concernThe Group's activities, together with the factors likely to affect its future developments, performance and position are set out in the business review on pages 16 to 23. The financial position of the Group, its cash flows, liquidity position and borrowings facilities are described in the financial review on pages 34 to 38.The financial statements have been prepared on a going concern basis because the General Partner considers that the external financing facilities in place, including undrawn capital/acquisition loan and revolving credit facilities of £48.4 million, together with the anticipated future trading performance of the Group, are sufficient to provide funds so that the Group can meet its liabilities as they fall due in the foreseeable future. Whilst the Group had net liabilities as at 31 December 2010, this is attributable to items included that are not required to be cash settled in the foreseeable future. Further details are contained under note 1 of the financial statements.6. PartnersThe partners with a significant interest in the partnership (in excess of 1%) are as follows:Rozier (Guernsey) LimitedFourth Cinven Fund (No. 1) Limited PartnershipFourth Cinven Fund (No. 2) Limited PartnershipFourth Cinven Fund (No. 3 - VCOC) Limited PartnershipFourth Cinven Fund (No. 4) Limited PartnershipFourth Cinven Fund (UBTI) Limited PartnershipRozier Employee Benefit Trust7. Employees and remunerationDetails of the number of persons employed and their gross remuneration are contained in note 3 to the financial statements.Every effort is made by management to inform, consult and encourage the full involvement of staff on matters concerning them as employees and affecting the Group's performance.The Group pursues a policy of giving every consideration to the employment of disabled persons. Employees who are registered disabled persons are, to the greatest possible extent, treated on the same basis as all other employees and given every opportunity to develop their full working potential within the Group, through training, career development and promotion. Where employees have become disabled whilst in the service of the Group, every effort is made to rehabilitate them in their former occupation or some suitable alternative.8. AuditorErnst & Young LLP has been appointed as the Group's auditor for the accounting period and offers itself for re-appointment.Registered Office: For and on behalf of the General Partner:Elizabeth House1st & 2nd FloorsLes Ruettes BrayesSt Peter PortGY1 1EWDirectorSpire Healthcare (GP1) Limited28 April 2011