Four Seasons reports flat Q2 earnings

Four Seasons Nurses

Earnings for Four Seasons for broadly in line with the year earlier period with a rise in fees and occupancy offset by an increase in costs.

EBITDA for the group stood at £13.5m in the quarter, £0.1m lower than in the previous year, with turnover up by £6.8m to £164.5m.

Robbie Barr, chairman of the Four Seasons Health Care (FSHC) Group, said: “The Group has maintained its strong operational and financial performance and at the half year, EBITDA, occupancy and quality ratings were well ahead of the comparative period last year.”

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Occupancy at FSHC and brighterkind in the quarter rose to 89.4% compared with 87.5% in the year-earlier period with The Huntercombe Group (THG) up from 82.3% to 82.4%.

Group average weekly fees at £814 were up by 7.6% on Q2 2016. Four Seasons said it had benefited from the rationalisation of its estate with the removal of unviable fee rates and disposal of lower acuity THG units. FSHC and brighterkind fees rose to £717 from £669 in the prior year with THG fees rising to £2,721 from £2,425.

Payroll of as a percentage of turnover stood broadly flat at 63.7% FSHC and brighterkind saw a slight  year on year rise from 63.6% to 63.7% with THG posting a sharper increase from 68.9% to 74.2%.

Agency costs as a percentage of payroll rose from 6.9% in Q2 2016 to 9.7% this year.

Central costs as a percentage of turnover also rose from 5.9% in Q2 2016 to 6.3% in Q2 2017.

Robbie added: “Work continues on the intended restructuring of the Group towards a sustainable capital structure for the long term….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.”

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