Restructuring Four Seasons reports Q2 fillip
Cheshire-based Four Seasons Health Care – the UK’s largest care home operator – is reporting increased turnover and EBITDA as it continues to restructure amid the burden of £500m of debt.
EBITDA for the second quarter of 2017 was £13.5m – 14% higher than Q1 – bringing the figure for the first half of this year to £25.3m, 11% higher than the comparative period last year.
Turnover for Q2 was £164.5m, up from £163.9m in Q1 with first-half revenue 17.5m, or 5%, ahead of the comparative period last year.
Occupancy across the group’s care homes in Q2 was 89.4%, compared 87.5% in the same period in 2016.
Chairman Rob Barr said: “Work continues on the intended restructuring of the group towards a sustainable capital structure for the long term.
“The wellbeing of our residents, patients and colleagues will not be adversely affected as we work towards that goal.
“Our positive results have been achieved in the face of the continuing challenges facing the sector, the foremost of which are the severe funding pressure facing Government-funded services and the national shortage of nurses.
“The continuation of the Social Care Precept gave local authorities the ability to increase Council Tax by up to 3% to support social care funding and the cost of the National Living Wage increases for carers.
“It is essential that they pass on the precept to front line operations. Some local authorities decided not to raise the full 3%, so on average the precept raised council tax by 2.6% from April of this year.”
Four Seasons has an annual debt interest bill of about £50m, and the company has acknowledged the need to put its finances on a more stable long-term footing.
Guy Hands’ Terra Firma paid £825m for Four Seasons – which runs around 300 care homes across Britain – in 2012. During the last two years it has sold or closed more than 50 sites.
