Elli Investments Ltd, parent group of Four Seasons Health Care, has confirmed a positive start to 2016 with average weekly fees across the group rising 3.8% to £715 and occupancy increasing from 85.3% in Q1 2015 to 86.4% in the first three months of this year.
After adjusting for disposals and home closures Q1 2016 turnover for the group was approximately £7m higher than Q1 2015.
Within the group, total turnover in the Four Seasons Health Care Division was approximately £4m higher than Q1 2015 after adjusting for the reduction of approximately 840 effective beds from the closure or sale of around 30 care homes.
The disposals hit top line revenue by around £7 million, but improved the group’s operating profit margin [EBITDARM] by 0.6%.
Profit for the quarter was £9.2 million, just £0.3 million lower than the same quarter in 2015.
Payroll in the group’s care homes as a percentage of turnover was at 65.3% in Q1 2016, 1.6 percentage points lower than the same quarter than in the comparative period.
Agency staff costs have reduced significantly in the group’s care homes from 8.3% in Q1 2015 to 6.5% in Q1 2016 due to operational improvements, increased management focus and a reduction in the number of embargoes, the company states.
The number of current embargoes in the group’s care homes remained at an historical low of three during Q1 2016.
The group’s debt of £525 million increased by £13 million in interest during the quarter.