CM Company News

Homecare provider Sevacare (UK) Ltd has reported another year of strong growth with turnover up 43% to £7.4m (2009: £3m) and bottom line profits exceeding the £1m mark for the first time.

Equity house Bridges Ventures has announced that the European Investment Fund (EIF) is to be the main investor in its Bridges Ventures Fund III, which held its first closing at £72m.

Care UK Health and Social Care Holdings reported a 9.4% increase in group turnover to £487.5m for the year ending 30 September 2012 (2011: £445.7m). Most of this growth was attributable to the residential division following the addition of 1,850 beds from the failed Southern Cross portfolio at the end of 2011. Adjusted group EBITDA (operating profit plus depreciation), which is one of Care UK’s preferred KPIs, increased by 8.6% to £49.3m (2011: £45.4m). After charging depreciation (£17.4m ), amortisation (£17.2m) and non-recurring items (£4.2m), operating profit was a narrowish £10.5m for the year (2011: loss of ££7.1m). And net financing expenses of £73.4m (2011: £68.8m) pushed the private equity owned company (backed by Bridgestone) well into the red again with a £62.9m pre-tax loss (2011: £75.9m). However, a tax credit of £9.7m brought the loss after tax down to £53.2m with the 2011 sum reduced to £64.4m following a tax credit of £11.5m.

There was mixed fortunes for two of Life Style Care’s operating companies their results for the year ended 31 March 2014.

Mears Group has reported growth in profits and revenue for the sixteenth consecutive year for the year ending 31 December 2011.

Revenues rose by 31% for Country Court Care Homes in the year ended 31 March 2014 from £5.4m to £7.1m. Taking account of cost of sales of £4.8m (2013: £3.7m), administrative expenses of £1.7m (2013: £1.4m) and other operating income of £16,000 (2013: £330,000), the business made an operating profit of £610,000 (2013: £626,000).

Turnover within Saga’s healthcare division fell by 10% in the six months ending 31 July 2014.

After months of wrangling with its bondholders over its sale (CCMn June 2014), NHP is to be acquired by US investment firm Formation Capital in partnership with global investor Safanad, Court Cavendish and the management team of HC-One. The deal, which is expected to be completed later this month, will see the ownership of NHP’s 273 freehold care homes, including the HC-One estate of 235 facilities, acquired for £477m.

Bupa’s UK operation reported revenues of £2,528.8m in its preliminary results for the year ended 31 December 2012. This represents a marginal rise from £2,506.2m the previous year on its care, hospital and insurance operations. A pre-tax profit of £109.7m was recorded, a drop of 22% on 2011’s figure of £140.9m.

Four Seasons Health Care has implemented the changes to its revised £40m corporate credit facility, which it agreed with its banks at the end of last year. The UK’s largest care home operator said the facility had been converted into a three-year, £40m super senior term loan, maturing in December 2017, with Barclays acting as the sole underwriter.