Debt-ridden Four Seasons boosted by revenue increase to nearly £164m

Cheshire-based Four Seasons Health Care – the UK’s largest care home operator carrying debts of more than £500m – says its revenue in the first quarter of 2017 was £163.9m – 7% higher than the same period last year, on a like for like basis.

EBITDA of £11.8m was £2.6m or 28% higher, for the group owned by owned by private equity firm Terra Firma Capital Partners.

Chairman of the group Robbie Barr said occupancy across the company’s homes was 9.7%, which is 3% than the comparative period in 2016.

“There is usually a seasonal decline in occupancy during winter months, which was exacerbated this year by a high level of winter deaths among elderly people nationally,” he said.

“Despite this, our occupancy percentage was higher than in any other first quarter for three years.

“There has been continued significant improvement in quality of care. Approximately 64% of the group’s care homes were rated as good or outstanding, or the equivalent inspection outcomes under the different regulators, as at March, 2017, a 13% increase since March, 2016.”

He said the group ended Q1 with cash balances of more than £44.

“We have sufficient medium term financing to allow us to continue to focus on driving further performance improvements, whilst the group’s owners engage with key stakeholders to reach a debt and capital structure which is more appropriate to its long-term requirements,” he said.

“We are confident that neither the quality of care we provide to our residents, nor our colleagues’ work would be impacted by this process.”