Revenue has almost doubled at US-owned mental health provider Cygnet Health following its acquisition of Cambian Adult Services (CAS) at the end of 2016.
The company, which was bought by Universal Health Services in 2014, has scaled up rapidly in the last two years, reporting revenue of £334.3m in the year to December 2017 – an increase of almost 87% on the previous year. This follows revenue growth of 35% in 2016 on the back of its Alpha Hospitals acquisition and organic expansion.
In line with revenue growth, operating expenses leapt 96% to £293.8m, leaving operating profit of £40.4m against £29.4m the previous year.
Cygnet said the acquisition of CAS along with ‘good occupancy levels’ had led to solid progress in 2017. It also expanded organically, extending existing sites, opening a 56-bed hospital in Coventry and embarking on the construction of a 65-bed hospital in Maidstone, Kent.
At the year end, the enlarged business operated 2,404 beds (2016: 1,112) and had an asset value of £906m – £442m of which relates to the CAS acquisition.
The company has continued to scale up this year – adding 25 facilities with 288 beds to its portfolio via the acquisition of Danshell Group in July.
Commenting on the results, the directors said: ‘The Group remains focused on enhancing services to deliver high quality and shorter lengths of stay and lower episode costs so that our customers receive better value and service users are rehabilitated faster. Our business continues to be supported by strong relationships with customers – in 2017 Cygnet did business with 220 NHS purchasing bodies. We are pleased to be partnering with the NHS on working together in new innovative ways that are mutually beneficial to us both clinically and from an efficiency point of view but also in a way that puts service users first.’