High operating costs hit profits at Genesis Cancer Care

Genesis Cancer Care, formerly CancerPartners UK, has reported a 20% jump in turnover to £23.8m for the year ended 30 June 2015.

The company, which was acquired from its long-time private equity backer Apposite by Australian radiography giant GenesisCare subsequent to the year end (HMn July 2015), attributed the increase to continuing growth at existing sites and the impact of new centres opened in the year.

However, expenses spiralled by 24% to £19.3m as a result of additional operating costs at the newly opened centre in Oxford and pre-opening costs for the ninth centre under construction. On top of this, the company said additional costs were incurred to strengthen and develop clinical management and quality. The outcome was that operating profit was up just 2% on the previous year to £4.5. Interest and finance restructuring charges amounted to £3.1m (2014: £2m), leaving pre-tax profit down just over 40% to £1.4m.