Thursday, March 28, 2024
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SX homes boost Care UK’s profits

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.

Cambian merges businesses as it launches LSE flotation

Cambian has listed of the London Stock Exchange, merging its specialist care and childcare businesses in the process. Owners GI Partners priced its initial public offering (IPO) and began conditional dealings on Friday. Unconditional dealings are expected to start on 16 April.

Tendering success boosts CIC turnover

Specialist care operator Community Integrated Care (CIC) reported a 6% increase in incoming resources from £94.2m to £99.8m for the year ended 31 March 2014. After deducting the £100.4m cost of running its services (2013: £96m), CIC made an operating loss of £0.7m (2013: loss £1.9m).

Moody’s downgrades Care UK’s ratings

Ratings service Moody’s has downgraded both Care UK’s corporate family rating and probability of default rating from B3 to to Caa1 and B3- PD to Caa1-PD respectively. It has also downgraded the rating of its Senior Secured Floating Rate Notes from B3 to Caa1 and its Senior Subordinated Second Lien Notes to from Caa2 to Caa3. Moody’s, however, said the outlook for the care home operator was stable.

Mi Homecare contract win

MITIE’s homecare business Mi Homecare has been awarded two contracts which it says will be worth more than £5m over a five-year period. The contracts with the Royal Borough of Kensington and Chelsea and the London Borough of Hammersmith and Fulham both have an option to extend for a further two years and will be paying the London Living Wage of £9.15 per hour.

Profits slump for UK operations within Bupa

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.

HC-One – the phoenix from Southern Cross’s ashes?

Of the many portfolio changes experienced across the long term care sector in the last month and coming weeks, the biggest is the formation of a new major provider owned by former landlord NHP and care management consultant Court Cavendish.

Growth up but profits down at Care Management Group

CMG Investment Holdings Limited, the parent company of Care Management Group, CMG Homes Limited and Belgravia Nursing and Care Bureau Limited, which provides residential care and supported living services for people with learning disabilities and complex needs, has reported revenues of £48.5m for the year ended February 29 2012, an increase of 6.5% on £45.6m the previous year.

NFA posts profits in the face of council cuts

In the financial year to 31 March 2012 when it changed hands from Sovereign to Graphite Capital (CCMn February 2012), the National Fostering Agency (NFA) achieved a turnover of £57.5m, an increase of 6.1% on the previous year’s £54.2m. Further resisting the effect of local authorities’ attempts to try to cut unit costs, the UK’s second largest fostering agency recorded an operating profit of £9.3m (2011: £7.7m) and a pre-tax profit of £5.5m (2011: £3.5m). The directors reported: Following the government’s spending review in October 2010, significant pressure continues to be placed on local authorities to reduce costs across all areas of their activity including children’s services. Despite this ongoing pressure to reduce unit costs, the group has maintained its revenue levels and improved profitability. NFA’s principal revenue sources are within the public sector, substantially reducing the risk of bad debt.’

Clearwater picks up TL Care

Synova Capital-backed Clearwater Care acquire TL Care for an undisclosed amount. Synova said the addition of the firm, which is based in the East Midlands and was established in 2009, complements Clearwater’s existing geographic footprint and provides a strong platform’ for further growth within the Midlands. David Menton, managing partner of Synova and director of Clearwater said: TL Care is a high quality provider which we have followed closely for some time.