Inmind Healthcare’s bottom line losses almost trebled to £3.2m in 2025 as falling hospital occupancy and changes in NHS commissioning continued to impact the independent mental health sector.
The group, which provides specialist inpatient services for people with severe and enduring mental health conditions, reported a 2.6% decline in turnover to £33.6m, while operating losses widened to £3.4m.
Auditor UHY Hacker Young warned of material uncertainty over the group’s ability to continue as a going concern after its net liabilities increased to £5.7m.
Inmind said the deterioration in trading was due to lower occupancy across its hospital portfolio, particularly in acute mental health and rehabilitation services, the repurposing of its Battersea Bridge House service and a shift towards patients with more complex needs.
The company said changes in NHS and integrated care board (ICB) commissioning behaviour had led to reduced referrals and longer placement approval times.
This included greater use of NHS capacity, tighter authorisation of placements, shorter anticipated lengths of stay and an increased emphasis on returning patients placed outside their home areas to local services.
‘Sustained financial pressure on ICBs and local authorities, together with the accelerated national programme to repatriate out-of-area and distant placements, reduced the volume of acute and rehabilitation placements commissioned from independent sector providers,’ said the company. ‘The Directors consider this to be a market-wide effect rather than one specific to the Group, and expect the actions taken will support an improving occupancy and cost position through 2026.’
Inmind’s gross profit fell 9.9% to £8.4m as cost of sales remained broadly unchanged at £25.2m despite the reduction in revenue. Administrative expenses increased 12.3% to £11.8m, contributing to the widening operating loss. Pre-tax loss increased to £3.4m.
Net liabilities more than doubled to £5.7m, while creditors falling due within one year increased to £15.1m.
The directors said this meant there was material uncertainty regarding the going concern status of the group. However, they said the group had taken mitigating action, including restructuring its senior and regional management arrangements, strengthening referrals and admissions function and increasing direct engagement with commissioners.
It also reviewed service models, workforce deployment and operating costs, with a focus on improving occupancy and reducing payroll expenditure.
Looking ahead, the directors said: ‘Post-year-end management information indicates an improving trend in referrals, admissions and occupancy across a number of services. While the timing and pace of recovery remain dependent upon NHS and ICB commissioning activity, the directors believe the measures implemented provide a stronger operational platform and are expected to support a progressive improvement in occupancy, cost efficiency and financial performance during 2026.’
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