Recruitment and retention remains a ‘major challenge’ for Agincare, the independent care provider has highlighted in its latest financial report.
Its group strategic report for the year ended 4 August 2017 said the business had seen an increase in pressures in this area, common across the whole of the care sector.
‘Some of the workforce from the EU may be lost within the next two years as a result of Brexit, which will further compound issues and attraction from other competitive sectors,’ the document said.
Agincare also sensed a ‘real rationing of social care in its dealings with local authorities’, with potential growth impacted by ongoing decisions to not bid on contracts with low rates or high risk contractual obligations, which restricted expansion in the Midlands and the North.
In the report, chairman and founder Derek Luckhurst (pictured) said: ‘The directors remain concerned that central government continues not to understand the resourcing requirements of the social care sector and money better focused in social care is being misallocated to the healthcare budget.’
Turnover at Agincare fell slightly during the reporting period to £33.2m, from £33.4m in 2016, while cost of sales dropped marginally to £24.5m, from £24.9m. Administrative expenses, including an exceptional item, rose to £7.7m (2016: £7.4m). Pre-tax profit fell to £1.1m, from £1.2m in 2016.
The director’s report said that it was continually reviewing its workload because of changing demographics, social and health care demands, and will address commercial issues threatening the sustainability of geographical operations.
It added: ‘Further diversification of service provision and partnerships with others, away from public sector areas, will also be pursued. Opportunities to absorb additional hours on our current infrastructure continue to be attractive as others exit the market for various reasons.’
Luckhurst told CM: ‘Agincare Group continued to grow in line with its strategic objectives, and despite another challenging year of sector conditions, including rising costs and further cuts to key local authority customer budgets, our results reflected a continued focus on consolidating business, reducing risk and ensuring long-term sustainable growth and employment.’
Agincare provides domiciliary, extra, live-in and dementia care and care home services to both private and public sector clients.