Agency costs hit Four Seasons profits

Increased agency costs contributed to a 3.1% drop in Four Seasons’ EBITDA in 2017.

The care home provider posted EBITDA of £53.7m in the year ending December 31 2017 down from £55.4m in 2016.

Agency as a percentage of payroll for the business rose to 10.1%, compared with 8.0% in the year earlier. Turnover dropped by 3.8% to £660.4m from £686.2m in 2016.

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On the positive side, occupancy rose by 1.7 percentage points in the year to 90.3%.

The group’s number of homes rated ‘good’ or ‘outstanding’ was also up by 4 percentage points to 72%.

Capital expenditure amounted to £38m, including £29m on maintenance, the equivalent of £1,700 per bed.

Robbie Barr, chairman of Four Seasons, said: “The past year has been a very busy and productive one for the group with continued improvement in care quality, occupancy and employee engagement.”

Earlier this month, Four Seasons announced that it was extending the deadline for talks with leading creditor H/2 Capital over a rescue agreement for the business (see Four Seasons and H/2 Capital agree talks extension).

Robbie added: “In addition, significant progress has been made on the key priority of working with the group’s key stakeholders on delivering a sustainable capital structure so that the group is well positioned to fulfil if potential for its residents, staff and providers of capital.”

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