One of the biggest names in the UK’s care industry continues to grapple with significant financial challenges, having reported a third quarter loss of almost £30million.
Four Seasons Health Care, the second largest company of its kind in the country, has said that cuts in funding from local councils and a shortage of nurses has contributed to its poor performance.
Notching up losses of £27.5million in the space of just three months, the organisation is currently looking at the possibility of a restructure.
It has been suggested that United States-based investment firm H/2 Capital Partners could take control of the company from the Terra Firma private equity group.
The squeeze on the finances of many care companies is well-known, with the continuing crisis in adult social care and the impact of minimum wage legislation having taken their toll on providers.
A number of organisations are also grappling with a recruitment crisis, said to have been exacerbated by Britain’s departure from the EU (the sector is heavily dependent on workers from overseas).
The difficulties facing Four Seasons are particularly troubling given the extent of its operation. At present it provides placements for around 17,000 elderly and vulnerable people around the UK.
In the most recent quarter, the company actually managed to make an operating profit of almost £14million but the sum was dwarfed by the debt interest payments – which stand at more than double this amount.
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