CM Company News

B&M Care Group, the care home provider for older people, reported growth across the board for the year ending 30 September 2012.

Care home group Countrywide Care Homes recorded a turnover leap of over £20m for the year ending 30 April 2013. Turnover hit £42.8m (2012: £22.3m) however, this did not translate into vastly high profits with operating profits reaching £491,000 (2012: £481,000). However, operating profit before depreciation and amortisation was reported at £1.1m (2012: £501,000).

Prime Life Limited achieved a turnover of £45.1m on its estate of 60 care homes for the year ended 31 March 2014, a marginal increase on the previous year’s £44m. An increase in cost of sales from £31.7m to £35.2m (after administrative expenses of £2.1m were deducted (2013: £2.3m)), hit operating profits, which fell from £10m to £7.8m.

Revenues rose by 11.5% from £93.7m to £105.7m for Runwood Homes in the year ended 30 September 2014. After taking into account cost of sales of £64.7m (2013: £57.4m) and administrative expenses of £20.6m (£18.9m), the care home provider achieved an operating profit of £20.4m (2013: £17.5m). A £18,500 profit of the sale of tangible fixed assets (2013: £1.4m loss on the sale and impairment of this asset class), and interest charges of £4.3m (2013: £4m) left the the operator with a £16.1m pre-tax profit (2013: £12.2m).

In what could be the start of a growing trend, retirement village operator Audley has been acquired for £158m by the Moorfield Audley Real Estate Fund. Created specifically to purchase the care operator, the fund is backed by many’ investors who had an interest in Audley’s former owner the Moorfield Fund.

In the year it was purchased by £158m by the Moorfield Audley Real Estate Fund (MAREF), Audley Court reported a 6.8% increase in revenues...

Octopus Healthcare’s open-ended UK healthcare real estate fund, which focuses on UK elderly care homes, has raised £85m. Originally the MedicX Healthfund, the investment vehicle...

Care home properties have been underperforming as investment vehicles since 2009 and have yet to experience the recovery experienced in other commercial property areas, according to the city law firm Wedlake Bell.

Active Assistance, August Equity’s portfolio company, has acquired specialist care provider Neural Pathways for an undisclosed sum.

Optimum Care Limited reported revenues of £24.1m for the year ended 31 March 2012, an increase of 17% on the previous year’s £20.4m. Operating profit also rose to £1.3m (2011: 900,000) and a pre-tax profit of £600,000 was made (2011: loss £5.2m).