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Financial and operating highlights for year end 31 December 2010
- Turnover: £503.6 million
- EBITDA (earnings before interest, tax, depreciation and amortisation): £98 million.
- Profit after tax but before exceptional items: £17.9 million
- Retained profit after exceptional items, mainly relating to financial restructuring: £6.6 million
- Turnover at £503.6 million increased 3.6% compared to 2009 (£486m) as a result of organic growth and strategic acquisitions.
- Although at £98 million EBITDA was slightly down on 2009 (£102.4m), this was a considerable achievement against challenging conditions across the industry including: (1) significant reductions in real-terms in fee settlements from local authorities as a result of the Government’s Comprehensive Spending Review; (2) increases in non-discretionary core costs; (3) declining occupancy across the sector. Four Seasons continued to maintain occupancy at 87.6% against this trend.
- The Group completed two acquisitions during 2010 resulting in increased capacity of 900 beds. The first acquisition was of the trade and assets of Eton Square Healthcare, with seven leasehold care homes. The second was the “in housing” of six care homes and two specialised units that were previously leased to Craegmoor Limited by the Group’s investment property portfolio. During 2010 the Group also exchanged contracts for the acquisition of the Care Principles business.
- On 10 September 2010 the Group successfully negotiated a two year extension to the maturity date of its remaining c£780 million debt, giving a stable funding base from which to consider a number of different capital structures for the longer term.
- The directors are considering, together with certain of the Group’s lenders and shareholder representatives, a number of possible capital structures to ensure that appropriate levels of funds will be in place after September 2012 to match the Group’s financing objectives.
Notes:
1. 2009 was a short accounting period following the restructuring of the Group’s debt in December of that year. The comparatives in the 2010 statutory accounts do not therefore represent a full year’s trading.
2. The acquisition of the Care Principles business was completed in 2011 and in that year the Group also took over the operations of 140 Southern Cross homes. As a consequence Four Seasons Health Care in 2012 is 40% larger in capacity than in 2010.
3. Knight Frank LLP carried out a valuation of the freehold and leasehold properties owned by the Group on an individual basis for internal and balance sheet purposes in October 2011. The Market Value was reported at £941,110,000. The balance sheet valuation was for Existing Use Valuation under UK GAAP and Market Valuation under IFRS.
