Nursing homes group up by 89%

Click to follow
The Independent Online
TAKARE, the nursing homes group that yesterday announced an 89 per cent surge to pounds 5.63m in interim profits, is ready to pitch for further health authority contracts when the Government's community care reforms are implemented next April.

The company, which specialises in the long-term care of elderly and mentally handicapped people, saw turnover rise by 70 per cent to pounds 21m after 720 new beds were brought into operation in the six months to 30 June.

Takare currently has 3,345 beds and expects to exceed its target of 5,700 beds by the year-end. Occupancy levels are running at about 98 per cent.

Nearly 90 per cent of its beds are funded by the National Health Service or the Department of Social Security.

Keith Bradshaw, chairman, said health authorities would be using their bargaining power to obtain good deals when the reforms were introduced.

But he added: 'Whenever there is pressure on the public pound it will definitely be to the advantage of the well-focused supplier.

'Local health authority managers need to know they are dealing with a company which will still be there in five years' time. They have to be confident both in financial and care terms. 'We're talking about highly dependent patients. Whatever happens they're not going to go away.'

Last September, Takare raised pounds 60m for its building programme by issuing shares and debenture stock. Mr Bradshaw said the company would not be approaching shareholders again until September 1993 at the earliest.

Capital expenditure, which accounted for pounds 23m in the first half, will total about pounds 46m by the year- end against pounds 36m last year.

Earnings were up by 33 per cent at 5.7p per share. The interim dividend of 0.6p was up 20 per cent. The shares closed up 5p at 195p.