Four Seasons Healthcare Group has reported a strong turnaround in operational and business performance in 2016.
Group revenue for the business rose by 8.4% to £686.2m with EBITDA up by 43% to £55.4m.
Chairman Robbie Barr said: “The group achieved a strong turnaround in operational and business performance during 2016, with marked improvements in care quality, occupancy, employee engagement and financial results.”
Average occupancy grew by 3.1 percentage points to 88.4%, peaking at 90% in the fourth quarter, the highest level for more than three years.
“The group’s quality and regulatory ratings have continued to improve resulting in just one embargo at the end of March this year,” Robbie added.
At an individual business level, Four Seasons Healthcare delivered its strongest quarterly results in over two years in Q4.
Occupancy averaged 88.6%, up from 85% in 2015, rising to 90.4% in Q4.
Luxury care arm brighterkind increased its proportion of self-funded residents to its highest level at 46.6% in 2016. Self-funders accounted for 49% admissions in Q4.
Occupancy stood at 87.4% in Q4, 2 percentage points above the year-earlier period.
Group net debt stood at £532m at the end of 2016.
Robbie said: “The group ended Q1 2017 with a cash balance of £44m. This, together with further expected disposals, provides sufficient medium-term financing to allow the group to continue to focus on driving further improvements to our operational and financial performance, whilst engaging constructively with key stakeholders towards reaching a debt and capital structure which is more appropriate to its long-term requirements. I would like to underline once again that we can see no reason why our staff, or the quality of care that we provide to our residents, will be impacted by this process.”
Four Seasons is continuing discussions over the capital structure of its business.
Sky News reported last month that it was seeking a buyer for its mental health unit, Huntercombe (see Four Seasons seeking buyer for mental health unit).