Care home operations owned by Phil Burgan – Maria Mallaband Care Group and Countrywide Care Homes Ltd – both returned to profit despite challenges posed by the national living wage and inflationary pressures.
A breakdown of financial figures shows that turnover at Maria Mallaband rose in the year ended 30 April 2017 by 12.3% to £71.3m, from £55.9m in 2016.
Cost of sales was £36.5m during the period, up from £32.6 in 2016, representing a 11.9% increase. The business had an operating profit of £2m, up from its £5m operating loss in 2016.
The company was left with a pre-tax profit of £2m, after making losses of £6.5m in 2016. EBITDAR grew 94% last year to £19.4m, from £10m in 2016.
Its strategic report said the group continues to ‘look for suitable growth opportunities’ in what it describes as ‘highly competitive’ markets.
The report said: ‘Providers of health and social care continue to face significant increases to costs, particularly as a result of the increases in the national living wage and other general inflationary pressures.’
During the period the group invested ‘significant resources’ into training and development of its workforce to ensure it can meet the challenges of recruiting and retaining competent and qualified staff, which remains a difficulty.
At its sister company, Countrywide Care Homes, turnover remained static at around the £50m mark, but the business moved into the black with a slight profit.
Figures shows that during the year ended 30 April 2017, turnover was £50.1m, up from £50m in 2016. Cost of sales stood at £30.1m last year, slightly down on the £30.6m in 2016. The company was left with an operating profit £1.1m during the year, after making an operating loss of £68,000 in 2016.
As a result, the business made a pre-tax profit of £303,000 last year, after posting losses of £898,000 in 2016. EBITDAR at the company grew to £8.3m, from £7.5m.
Countrywide Care Homes was established in July 2011 and took over some of the leases of care homes that had been formerly operated by Southern Cross Healthcare.
Maria Mallaband offers a variety of care services, including dementia, nursing, palliative and residential care. In June 2014 US REIT, HCP, acquired the freeholds of a portfolio of 20 of Maria Mallaband’s homes for an undisclosed sum.