Mimosa results far from rosy

In a challenging year for the business, Mimosa Healthcare Holdings achieved a turnover of £29.9m for the year ended 31 May 2012, a small like-for-like decline compared with the 17 months up to 31 May 2011, when revenues stood at £45.3m. Due to unexplained administrative costs of £5.8m, in 2012 made an operating loss of £2.2m (previous 17 months) A pre-tax loss of £2.5m was made during the report period, compared to £7m profit in the previous one. To counteract these losses, Mimosa is being forced to return up to five of its homes to their landlords. The directors of the care home operator reported a drop in average occupancy levels from 82.8% at the start of the report period to 78.9% at the year end. They also noted that EBITDA as a % of sales had halved from 18% to 9%. They said: With a majority of the clients that the group supports funded through the public sector, the continued constraints on public sector expenditure is hampering growth in occupancy levels. With clients being placed with increasing acuity of need and higher levels of respite placements, overall occupancy levels have fallen although client flow has increased.’