Affinity losses widened before Priory sale
AFFINITY Healthcare had widening losses and growing liabilities before it was sold to the Priory Group earlier this year, new accounts show.
The Cheshire-based group, which includes the Cheadle Royal Hospital and employs 841 staff, saw its pre-tax loss widen to £7.6m (2008: £6.6m) in the year to the end of June 2009.
This was despite increasing turnover 14% to £42.1m from £36.8m. EBITDA was £7.5m.
Newly filed accounts also reveal that the company further increased its net liabilities for the year by £7.7m, to more than £24m. Net current liabilities stood at £1.8m.
Private equity firm Duke Street acquired Affinity Healthcare in 2004 for £69m. Financed by a combination of private equity funding and bank debt, Affinity owed more than £100m to creditors, in total.
It was bought by the Priory Group for an undisclosed sum in January.
At the time the company said the deal meant a greater range of integrated, high-quality services will be offered to all patients.
Its Cheadle Royal Hospital provides facilities for eating disorders, adolescent mental health, rehabilitation, a psychiatric intensive care unit and care for low security patients.
