BREAKING NEWS: Four Seasons profit slumps 39% despite healthy rise in fees

Four Seasons 2015 Annual Report cover

Elli Investments Ltd, the parent group of Four Seasons Health Care, has confirmed profits for 2015 slumped to £38.7 million, a 39% fall from 2014.

In his first chairman’s review since taking over from Ian Smith earlier this year, Robbie Barr described 2015 as: “A turbulent year for all independent care providers who look after publicly-funded residents, with the continued problem of underfunding of social care compounded by a national shortage of nurses and a record number of winter deaths nationally”.

He continues: “Four Seasons Health Care has not been immune to these industry headwinds, and this has been reflected in the 2015 results. However, we are now seeing encouraging signs that operational improvements have begun to benefit customer satisfaction, occupancy levels and financial results and we expect this positive momentum will continue into 2016.”

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Highlights from the chairman’s review include:

Revenue was stable after allowing for closed and sold homes

After a drop due to winter deaths in Q1 and Q2 2015, occupancy in our care homes stabilised across the year so that while admissions in 2015 were 6.2% ahead of 2014, overall occupancy fell by 2.3% to 85.3%

Average weekly fees were a healthy 3.4% above 2014

As a result of increased agency usage and the occupancy reduction impacting payroll efficiency, EBITDA has been adversely affected and fallen to £38.7m, down 39% on 2014

The group continued to invest in its estate, spending £46.6m in the year, up £8.2m on 2014

Optimism about 2016 cannot mask a second year of declining revenues and profits. Turnover has dropped from £713 million in 2014 to £688 million in 2015.

Earnings were £94 million in 2013, dropping to £63 million in 2014 and just £38.7 million last year.

Four Seasons 2015 Annual Report

Tags : Elli InvestmentsFinancial ResultsFour Seasons Health CareTerra Firma

The author Rob Corder

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