Cambian Autism Services Ltd, a subsidiary of the Cambian Group, saw its losses grow to £7.4m in the 12 months to 31 December 2017, up from the £1.4m loss in the year previous.
The increase in losses was mainly due to a £3.8m management fee levied by the provider’s holding company for central services, including secretarial, estates, finance, human resources, IT and payroll. There had been no management fee in 2016.
The provider of specialist residential education and care for young people with autism spectrum disorders saw its revenue rise 3.5% to £32.3m during the period, up from £31.2m in 2016, due a ‘sustained focus on improving customer relationships and commissioning techniques’.
The level of activity has decreased year on year after it sold its adult autism operation in November 2016.
Costs of sales at Cambian Autism Services rose slightly to £26.8m during the reporting period (2016: £26.3m), leaving a gross profit of £5.5m (2016: £4.9m).
Administrative expenses, which included the management fee, more than doubled to £13.1m, up from £6.4m in 2016.
Its financial statement said the company has ‘adequate resources to continue in operational existence for a minimum of 12 months’, with the Cambian Group confirming ‘that it will continue to provide financial support’ to Cambian Autism Services during the period.
As reported in March, turnover at the Cambian Group grew 7.6% to £196m in the year ended 31 December 2017 (2016: £182.1m). The boost was helped by a rise in average fees due to a move into higher severity services.