The number of aged care customers at the Bupa Group worldwide has reduced by 29% mainly due to its decision to offload more than 130 UK care homes in the past year – part of a ‘significant reshaping’ of its business.
In its financial statement for the year ended 31 December 2017, Bupa said it now looks after 23,300 older care residents around the world. Its UK care services business cares for around 6,600 people in 137 homes, seven Richmond villages and 20 Goldsborough Estates retirement and assisted-living properties.
Underlying profit at its UK business last year grew 19% to £231.1m, up from £194.9m in 2016, while revenue was up 1% to £2.8bn (2016: £2.8bn). Its insurance and dental portfolios helped boost its revenue and profit.
Bupa sold 110 care homes to HC-One last year and completed a deal to sell a further 22 properties to Advinia Health Care last month. The company made £111.1m of losses on property revaluations in 2017, primarily from the sale of its care homes in the UK.
It invested £110m in refurbishing 15 existing homes and opening a retirement village during the year, with another location and four care homes under construction.
Occupancy rate at its UK care homes was 84.7%.
Bupa’s global revenue at constant exchange rates (CER) was up 5% to £12.2bn (2016: £11.7bn), while underlying pre-tax profit grew 10% to £805.3m (2016: £732.7m).
Globally, health insurance is around 70% of the group’s business, with it also running clinics, dental centres, hospitals, and care homes and villages.
Last year, Bupa announced the integration of its aged care and retirement village businesses in Australia and New Zealand into a single unit. Elsewhere, it expanded its care business for older people with the acquisition of five care homes in Madrid and a new site Barcelona. It now has more than 5,700 residents across 46 homes and three-day centres in Spain. It has one care home in Poland.
For more on the Bupa’s results click here.