Disposal strategy hits Hallmark’s profits

The sale of five care homes as part of a planned geographical realignment strategy led to a 6.2% reduction in revenues from £40.3m to £37.8m at Hallmark Care Homes Group Holdings Limited for the year ended 31 March 2012. Managing care homes accounted for £33.9m of turnover and £3.9m was generated from property development. All revenues from 2011 came from managing care homes. Operating profit stood at £6.8m (2011: £7.9m) and, following the inclusion of £6.6m profit from the disposal of the five facilities, a pre-tax profit of £12.5m (2011: £13.9m) was made. Hallmark added that EBITDA before the profit on the disposal of the five homes had fallen from £10m to £8.7m and the net cash inflow from operating activities stood at £7.8m (2011: £10.4m). The directors described the report period as a satisfactory trading year’, saying operating profit from managing care homes fell by only 7.3% to £7.3m’. They said: On a like-for-like basis, there is an improving trend, reflecting natural growth arising from established homes, improved occupancy rates for homes opened in previous financial years and the opening of a new home during the current financial year.’