Grosvenor Health and Social Care Ltd – formerly known as Sevacare Holdings Ltd – has seen a dip in turnover for the year ended 31 August 2017, with the company posting a pre-tax loss during the period.
The group, which has brands Sevacare, Care Cymru, Mayfair Homecare and Synergy Homecare in its portfolio, saw turnover fall to £70.9m during the period, from £74m in 2016. Cost of sales fell to £53m, from £55.1m, while administrative expenses rose to £18.3m, from £17.9m.
Last year, the company made a pre-tax loss of £716,553, after 2016’s profit of £674,582.
During the period the group reduced its workforce by 1.5%, and in December 2016 bought Silverdale Care Services. In December 2017, the company changed its name as it looked to consolidate its position.
Its strategic report said: ‘The entire social care sector continues to face challenging conditions due to the financial pressures on government funding and rising staff costs. Therefore, following the year end, the group has continued to focus on consolidating its position as one of the leading domiciliary care providers in the UK rather than purely on growth.’
It identified its key business risks and uncertainties to be employee retention, the ability to recruit workers and gaining clients through contracts with local authority and clinical commissioning groups.
The company said: ‘Additional risk lies in the long-term sustainability of some contracts due to the continued pressure on the charge rates. This is a result of deficiencies within some areas of social care funding.’
As of 31 August 2017, the weekly number of hours of care that was delivered was 90,500, a fall of 12,000 on the previous year.
The strategic report said: ‘This decrease derives from the group’s comprehensive review of all local authority contracts throughout the year, resulting in the termination of any contracts viewed as unsustainable in the long term.’