Southern Cross losses widen

first_img Share whatsapp Tags: NULL whatsapp SOUTHERN Cross Healthcare, the British care homes operator in takeover talks, posted a wider full-year operating loss after cuts in government spending hit admissions and put pressure on fees.Chief executive Jamie Buchan said the group, which has 38,600 beds across 752 care homes, was being squeezed by spending constraints at local authorities and was having to fight to maintain fee levels.“Our position is there is no justification for a decrease in fees,” he said. “We have cost pressures from the minimum wage and utilities, and there are more and more frail people with increasing needs.”The company posted an annual operating loss of £44.1m, after a non-cash charge, on 2.3 per cent higher revenue of £959m.The company remains in takeover talks, with private equity firm Blackstone said to be the the potential bidder, after negotiations with Towerbrook Capital, another private equity investor, broke down.Buchan did not confirm the Blackstone talks but said the group needed new capital to invest in the business.The board was looking at strategic options that could include a sale, he said, and was also talking to its landlords about restructuring its rents.Buchan said he was focused on further improvements to care standards, increasing the number of self-funded residents and making more cost savings against a tough trading backdrop.“We anticipate another challenging year involving continuing pressure on fee levels and placements which, when combined with fixed and variable cost inflation, have the potential to impact profitability,” he said. by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was Famous, Now She Works In {State}MoneyPailNoteabley25 Funny Notes Written By StrangersNoteableySerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople TodayBetterBe20 Stunning Female AthletesBetterBeMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesElite HeraldExperts Discover Girl Born From Two Different SpeciesElite Heraldcenter_img KCS-content More From Our Partners Mark Eaton, former NBA All-Star, dead at 64nypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.org980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.com‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comConnecticut man dies after crashing Harley into live bearnypost.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comKamala Harris keeps list of reporters who don’t ‘understand’ her: reportnypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.comKiller drone ‘hunted down a human target’ without being told tonypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.com Southern Cross losses widen Show Comments ▼ Tuesday 7 December 2010 8:06 pmlast_img

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