Southern Cross reports revenue growth

Source: Healthcare Digital

Date :13/08/2008 11:56:34

Troubled care home group Southern Cross yesterday August 12, reported an 18 percent rise in revenue after raising the weekly fees it charges to its elderly patients.

The company said revenue for the 14 weeks to July 6, rose from £207.6 million to £245.6 million, while EBITDA rose by 6.9 percent to £24.4 million.

Over the period, Southern Cross's average weekly fee rose from £506 to £530.

However, the average occupancy of Southern Cross homes was down to 89.2 percent for the 14 weeks to July 6, compared with 89.6 percent during the first half of the year.

Property assets

In June, the firm issued a profit warning and announced that it was seeking an extension to its loan facilities from its banks, which it has now secured until October 30.

The problems arose after a deal to sell the property assets of some care homes acquired with borrowed money fell through.

Southern Cross also announced that its finance director, Jason Lock, has resigned. and will be replaced by Richard Midmer.