42Spire Healthcare Annual Review 2010Spire Healthcare Limited PartnershipIndependent auditors' report to the partners of Spire Healthcare Limited PartnershipWe have audited the Group financial statements of Spire Healthcare Limited Partnership for the year ended 31 December 2010, which comprise the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity, the consolidated balance sheet and the consolidated cash flow statement and the related notes 1 to 27. These financial statements have been prepared under the accounting policies set out therein.This report is made solely to the partners, as a body, in accordance with the terms of our engagement letter and the Limited Partnership Agreement. Our audit work has been undertaken so that we might state to the partners those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the partners, as a body, for our audit work, for this report, or for the opinions we have formed.Respective responsibilities of the General Partner and auditorThe General Partner is responsible for the preparation and presentation of these financial statements in accordance with the Limited Partnership Agreement, International Financial Reporting Standards and for being satisfied that the financial statements give a true and fair view as set out in the statement of General Partner's responsibilities. This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.Our responsibility is to audit the Group financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with International Financial Reporting Standards. We read other information contained in the Annual Review, and consider whether it is consistent with the audited financial statements. This other information comprises only the Chairman's statement, the Chief Executive's statement, the business review, the corporate social responsibility report, the Board of Directors, the corporate governance report, the financial review and the General Partner's report. We consider the implications for our report if we become aware of any apparent misstatements within it or any material inconsistencies with the Group financial statements. Our responsibilities do not extend to any other information.Basis of audit opinionWe conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the General Partner in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Group's circumstances, consistently applied and adequately disclosed.We planned and performed our audit so as to obtain all the information and explanations that we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the Group financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the Group financial statements.OpinionIn our opinion:. the Group financial statements give a true and fair view, in accordance with International Financial Reporting Standards, of the state of the Group's affairs as at 31 December 2010 and of its loss for the year then ended; and. the Group financial statements have been properly prepared in accordance with the Limited Partnership AgreementErnst & Young LLP London28 April 2011

43Spire Healthcare Limited PartnershipConsolidated income statementFor the year ended 31 December 2010Notes2010£0002009£000Revenue643,046619,992 Operating expenses Staff costs(201,668)(197,367) Direct costs(189,976)(185,782) Property costs(17,997)(18,580) Other expenses(63,623)(64,623) Operating expenses (excluding exceptional items, depreciation and rent)(473,264)(466,352) Depreciation (45,800)(41,031) Rent(1,370)(3,257) Exceptional items492(4,987) Total operating expenses(520,342)(515,627) Operating profit (excluding exceptional items, depreciation and rent)169,782153,640 Depreciation (45,800)(41,031) Rent(1,370)(3,257) Exceptional items492(4,987)Operating profit122,704104,365Loss on disposal of property, plant and equipment(16)(360)Finance income5 9325Finance costs6 (174,085)(168,233)Loss before taxation(51,304)(64,203)Taxation8 (1,482)23,576Loss for the year(52,786)(40,627)Attributable to:Owners of the parent(52,568)(40,627)Non-controlling interests(218)-(52,786)(40,627)