CM Company News

Ahead of its sale and leaseback deal with Griffin-American Healthcare REIT (CCMn July 2013), Caring Homes Healthcare Group Limited reported a rise in revenues from £142.2m to £144.4m for the year ended 31 March 2013. Following operating expenses of £36.5m (2012: £38.0m) the provider, previously known as Myriad Healthcare Limited, reported an operating profit (EBITDA) of £29.0m (2012: £25.7m). After charging amortisation, depreciation and exceptionals, profit before interest and tax (PBIT) came in at £16.0m (2012: 17.1m). A reduction in its interest changes to £21.5m (2012: £27.2m) gave Caring Homes a pre-tax loss of £5.5m (2012: loss of £10.4m) on its portfolio of 132 elderly and specialist care homes. Chief executive Paul Jeffrey said the turnover reflected an average occupancy rate of 87%, the same as in 2012, and a weekly fee of £937 (2012: £925) per person. He added that the group’s key measure of operating performance (earnings before interest, tax, depreciation, rental and management charge), representing the fee income less operating costs, led to a margin of 32.5% (2012: 31.4%).

Avante Partnership has launched a £5m charity bond to fund the development of a 75-bed dementia care home on the Isle of Sheppey.

Mental healthcare provider Cambian could be set to list on the London Stock Exchange in a £500m float according to rumours within the sector.

Target Healthcare REIT is to launch a new share offer after the company said it was now fully invested’ following the acquisition of two purpose-built care homes in the north west of England. Formed in January 2013, the specialist investor was listed on the London Stock Exchange two months later, raising £45.6m. Target bought the homes in Longridge, near Preston, Lancashire and St Helens, Merseyside for £11.5m, including acquisition costs. Offering a total of 154 beds, the two homes provide both residential and dementia care.

Care provider for people with learning disabilities, Care Management Group (CMG), announced last month that it had refinanced with £47m of £107m debt replaced in a debt for equity swap which gives CMG’s syndicate of banks a 15% stake in the business.

Charity Methodist Homes (MHA) reported a 16.8% rise in incoming resources for the year ended 31 March 2013 to £179.7m from a restated figure of £153.7m for the previous year. MHA said the increase was due to growth in its services for older people including the 18 former Southern Cross homes whose leases it acquired. After costs of £168.6m (2012: £143.1m) a net income of £11.0m was recorded (2012: £10.7m). The bottom line then received a hefty £31m top-up from a revaluation of assets, which boosted reserves to £224m at the year end (2012: £182m).

Shaw Healthcare experienced a marginal drop in turnover from £85m to £84.6m for the year ended 31 March 2013. The previous year’s revenues included £874,000 of income from deferred assets. After administrative expenses of £12.7m (2012: £9.9m), including a £3m impairment on tangible assets in respect of freehold facilities in Wraxhall and Pembroke Dock, operating profits fell to £6.9m (2012: £9.6m). The care provider, however, made a £617,000 profit on the sale of Cherry Orchard care home in Clevedon, North Somerset, which was closed during the year. Together with net finance charges of £5.7m (2012: £6.0m) this led to the operator recording a pre-tax profit of £1.9m (2012: £3.7m). The directors reported that overall occupancy of market beds reduced to 87% from 88% the previous year. They added: The group experienced lower occupancy levels in the early part of 2013/14 and, while we hope to increase occupancy in the coming months, we anticipate that profit before exceptional items in 2013/14 will be lower than in 2012/13. We continue to look for low-risk, low-capital intensive business opportunities to supplement our existing operations.’

Housing 21 reported a turnover of £222m for the year ended 31 March 2013, a marginal increase on the previous year’s revenues of £220.2m. Due to a £13.2m increase in costs, however, the extra-care housing developer and care provider’s operating surplus more than halved to £10.8m from £22.2m in 2012. This led to the charity recording a pre-tax deficit of £4.2m (2012: surplus £8.3m).

CareTech, social care provider for working age adults and children, posted positive results for the year ending 31 September 2013 in a trading update. The board reported that trading was in line with expectations and reflected the strength of its existing businesses and, the success of the new services it has developed in partnership with care commissioners.

Charity Community Integrated Care (CIC) remained strong in a strong financial position according to directors despite recording a deficit for the year ending 31 March 2013.