Losses have deepened at independent primary care provider The Practice Group as it continued to face challenging market conditions.
Annualised turnover for the year ended 31 December 2017 was broadly in line with the previous year at £38.3m (2016: £37.3m) but the company said increased labour costs along with one-off provisions had impacted operating costs, resulting in EBITDA losses of £3.6m against losses of £870,000 in 2016.
Pre-tax losses more than trebled to £5.2m (2016: £1.2m) but the directors said they continued to focus on creating a profitable and sustainable business model as a strategic partner to the NHS.
During the year, the Group launched a new complex care offering, providing home-based healthcare services for people with significant health conditions, long-term illnesses and disabilities. The directors said the move provided diversification for the Group’s activities in a key growth area at a time when its number of surgeries had reduced.
Commenting on the results, the company said: ‘Despite a challenging few years which continued into 2018, the directors believe that the Group’s extensive experience of working with the NHS will ensure it is well placed in the UK market and that the market will provide increasing opportunities to partner with NHS commissioners. The complex care of business continues to grow.’