New accounts filed by Barchester Healthcare Ltd to Companies House in the UK, show that it recorded the drop in profits in spite of revenues increasing by 7% from £463m to £495.4m in the 12 months to the end of December 31 last.
The figures show that a dividend ‘in specie’ or stock dividend of £111m was paid during the year and this was in the form of a waiver of inter company indebtedness.
According to the directors’ report, the improvement in revenues was driven primarily by a greater number of residents, with a greater number of available beds and higher occupancy.
However, operating profits decreased by 25% to £23.2m and the directors state that the improved revenue figure was primarily offset by an increase in external rental costs and an increase in overheads.
Barchester is one of the top four providers in the longterm care sector in the UK and provides in excess of 11,700 beds with a portfolio of over 200 high-quality care homes.
The largest proportion of the homes are located in London and the South East, while the remainder are evenly spread throughout the UK.
The directors state that they are satisfied with the performance during the year and expect to see continued growth in the coming year.
The directors explain that following the financial restructuring of the group, the balance sheet has a different structure and total equity and liabilities fell from £459m in 2012 to £311m facilitated by the inter-company waiver of £111m.