Administrators for Four Seasons have released the troubled group’s Q2 2019 financial highlights, concluding that “a number of opportunities exist for a purchaser to enhance performance” (figures compare to Q2 2018):
- Group turnover of £163.6 million – up £6.7m, or 4.3 per cent after adjusting for the impact of disposals and closures (an average reduction of c200 effective beds)
- Occupancy: +1.2 percentage points overall (Four Seasons Health Care: 88.7 per cent; brighterkind: 89.9 per cent; The Huntercombe Group (THG): 87.2 per cent
- Average weekly fee: £890, up 4.3 per cent (Four Seasons Health Care: +5 per cent; brighterkind +1.5 per cent; THG: +1.6 per cent)
- Agency staff as a percentage of payroll: 9.8 per cent (+0.3 percentage points) and reflects the impact of operational challenges and the on-going shortage of nurses across the wider healthcare sector.
- Revenue per home ranges from £0.5m to £7.3m excluding closed or closing homes, other than five homes which have revenue greater than £8m, being a function of size and service provision
- Occupancy ranges from 50-100 per cent across the estate
- The Group has budgeted around 100 homes to be loss making
- In late 2017 and 2018, Four Seasons was heavily impacted by the worst winter death rate in 40 years and the uncertainty surrounding the Group restructuring.
The following circumstances should be noted:
- Potential health and safety contraventions in respect of the injury and subsequent death of a resident in January 2019. An inquest is to be held, although no date is yet confirmed. In the interim a cautionary reserve in the 2019 accounts of £250,000 has been made
- Potential health and safety contraventions in respect of the death of a patient in March 2017. An inquest is to be held, expected November 2019
- Allegations of sexual assault perpetrated by another patient. A police investigation is ongoing
- Potential health and safety contraventions, in respect of the injury and subsequent death of a resident in February 2019.