close

Four Seasons estimates COVID-19 financial impact of £10-15m

Four_Seasons_logo

Leading care home operator Four Seasons has estimated a financial impact from COVID-19 of between £10 and £15m.

In its trading and restructuring update for the third quarter yesterday, Four Seasons said the full impact of the virus was unknown and there was particular uncertainty around the rate of occupancy recovery or the impact of further spikes of the virus.

The group recorded adjusted EBITDA of £11.8m, or 6% higher than Q3 2019, despite the ongoing negative impact of COVID-19.

Story continues below
Advertisement

Turnover was £2.9m, or 2.5% higher than Q3 2019, after adjusting for revenue from homes closed, sold or migrated.

The care home operator said occupancy levels had dropped to a low of 79.8% in the second quarter and had partly recovered to 80.8% in the third quarter.

Death rates had stabilised since the start of June and had reverted to levels at or below the seasonal average. Excess deaths peaked at 635 at the height of the virus in April and May and had since reduced to 320 on a year to date basis. Admissions during October and November were 70% of normal levels.

In terms of the group’s ongoing restructuring programme, Four Seasons announced the conditional sale of parts of Huntercombe Group on 2 November for £35m.

Four Seasons said it continued to explore potential sale of part of its care home business with a near term focus on Northern Ireland where it launched a sale process in relation to 43 freehold and long leasehold homes in September.

Looking ahead, the group said that cashflow remained “tight” and forecast it would require additional liquidity during Q1 2021.

A group spokesperson told CHP: “The group has been refocused over the past nine months and considerable progress has been made on the transformation journey. In the current operating environment, our utmost focus remains the safety and provision of quality care for our residents.”

Tags : FinanceFinancial ResultsFour Seasons
mm

The author Lee Peart

Leave a Response