Southern Cross sales increase with fee-per-bed rise

Source: Exec

Date :13/05/2008 10:24:19

Southern Cross Healthcare Group, the leading provider of care homes in the UK, has reported that sales are up after an increase in fees-per-bed drove revenues up 28 percent.

The company reported that available beds increased to 37,084 in the first half, a rise of 14 percent. Average weekly fees in the company’s care homes have increased 5.8 percent to £514 this year. Adjusted EBITDA rose to £30.8 million from £21.8 million in 2007.

Growth strategy

Turnover rose from £336.3 million in the first six months of last year to £431.2 million.

Bill Colvin, Chief Executive of Southern Cross, said, “The strong performance in the first half of the year reflects the continuing success of our growth strategy. Fee increases have been agreed ahead of our expectations, landlords continue to show interest in financing our properties and costs remain under control.”

In the first half of the year the company completed four new development projects, adding 269 beds to their portfolio.

Southern Cross has announced the opening of two further facilities, with 157 beds, and the company expects to add a further 369 beds by the end of the financial year.

Mr. Colvin added that there are many opportunities for the business to improve the quality of their portfolio and increase market share, as the UK’s ageing population increases.

May 13, 2008