Irish-backed care group Barchester Healthcare sees earnings top €170m mark
Newly filed accounts for Barchester Healthcare show that it recorded the earnings before interest, tax, depreciation, amortisation and rent as revenues increased by 2.3% to £535m in the 12 months to the end of December.
At the end of last year, Barchester was ranked among the top four largest companies in the UK long-term care sector, with 13,024 registered beds across a portfolio of 210 high-quality homes and seven independent hospitals.
However, the accounts show that Barchester’s pre-tax profits fell from £7.35m to £2.96m in 2015 marking a near 60% year-on-year decline.
In the directors’ report section of the filing, management said that, “despite a higher number of available beds, occupancy remained flat due to an unusually high death rate seen nationally across the sector in the first half of 2015”.
However, group chairman John Coleman added: “The group has a very strong balance sheet, with reduced bank and other debt, which leaves it free to explore ways of investing cash to support future growth in the scale of operations.”
One of the main reasons given for the drop in pre-tax profits was the payment of interest charges amounting to £15.15m.
Its latest strategic report says it is especially focused on the private pay market and the directors said that they are pleased with the performance of the group and expect to see continued growth in revenue in the coming year.
The growth in revenues, last year, “was driven primarily by higher fees rates”.
Accumulated profits at the group last year stood at £90m, with shareholder funds totalling £110m.
Numbers employed by the group last year fell from 18,683 to 17,623. Of that, 16,800 were working in ‘care’ roles. Staff costs last year increased from £265.55m to £270.3m. Remuneration for directors decreased from £3m to £1.63m.
In the accounts, management said that group strategy “is one of continued growth through new builds, the extension of existing facilities and, where appropriate, through the acquisition of new nursing homes of a suitable quality.”
Barchester’s net debt last year rose from £126m to £151m. This was “primarily as a result of the group entering into finance leases on four newly opened homes in 2015.”
