Priory Group No. 3 Plc: Results for the Three and Nine Months Ended 30 September 2013

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Priory Group No. 3 Plc: Results for thePriory Group No. 3 Plc: Results for the Three and Nine Months Ended 30 September 2013 PR Newswire LONDON, November 29, 2013 Group Financial Highlights Q3 performance • Revenue for Q3 2013 increased by £6.4m to £122.7m, a rise of 5.5% (Q3 2012: £116.3m), driven by higher demand for Acute Services in the Healthcare division, predominantly due to NHS Acute bed demand, the contribution from acquisitions in the Craegmoor division undertaken during 2012 and continuing maturity of homes in Amore Care. [1]• Adjusted EBITDAR , in line with expectation, is down 3.5% to £36.1m [1](Q3 2012: £37.4m) and Adjusted EBITDA is down 4.3% to £33.1m (Q3 2012: £34.6m) primarily due to the cost of wage inflation (£1.5m) and increased investment in quality assurance amounting to £0.6m. YTD performance • Revenue YTD 2013 increased by £9.6m to £356.7m, a rise of 2.8% (YTD 2012: £347.1m). [1]• Adjusted EBITDAR YTD 2013 down 7.3% to £101.9m (YTD 2012: [1]£109.9m) and Adjusted EBITDA down 8.6% to £92.9m (YTD 2012: £101.6m). The movements are predominantly due to changes in the trading environment in Education (£5.9m), which are not likely to reverse, notably a requirement to split residential accommodation from teaching facilities and fewer residential placements, as well as the cost of wage inflation and increased investment in quality assurance.

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• Publié par: priory-group
• Publié le: 29 novembre 2013
• Nombre de lectures: 2
• Langue: English

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Priory Group No. 3 Plc: Results for the Three and Nine Months Ended 30 September 2013

PR Newswire

LONDON, November 29, 2013

Group Financial Highlights

Q3 performance

• Revenue for Q3 2013 increased by £6.4m to £122.7m, a rise of 5.5% (Q3 2012: £116.3m), driven by higher demand for Acute Services in the Healthcare division, predominantly due to NHS Acute bed demand, the contribution from acquisitions in the Craegmoor division undertaken during 2012 and continuing maturity of homes in Amore Care.

• Adjusted EBITDAR^[1], in line with expectation, is down 3.5% to £36.1m (Q3 2012: £37.4m) and Adjusted EBITDA^[1] is down 4.3% to £33.1m (Q3 2012: £34.6m) primarily due to the cost of wage inflation (£1.5m) and increased investment in quality assurance amounting to £0.6m.

YTD performance

• Revenue YTD 2013 increased by £9.6m to £356.7m, a rise of 2.8% (YTD 2012: £347.1m).

• Adjusted EBITDAR^[1] YTD 2013 down 7.3% to £101.9m (YTD 2012: £109.9m) and Adjusted EBITDA^[1] down 8.6% to £92.9m (YTD 2012: £101.6m). The movements are predominantly due to changes in the trading environment in Education (£5.9m), which are not likely to reverse, notably a requirement to split residential accommodation from teaching facilities and fewer residential placements, as well as the cost of wage inflation and increased investment in quality assurance.

For a copy of the full financial report for the three and nine months ended 30 September 2013 please visit http://www.priorygroup.com/investors/financial-performance

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1. Excludes exceptional non recurring items and charges for future minimum rental increases

Commenting on the results, Priory Group Chief Executive Officer Tom Riall said:

"The overall results for Q3 are in line with expectation. It is encouraging to see the strong performance in our Healthcare division which has benefitted from increased demand for both NHS Acute and Child and Adolescent Mental Health services (CAMHS). This has however been largely offset by the challenging conditions we are seeing in the Education market.

"I am pleased to report that the Group remains on track to meet our revised guidance for the full year.

"Although regulatory pressures and cuts in public sector spending continue to impact our performance, I strongly believe that our continued investment programme will differentiate Priory from our competitors and our performance will benefit from this in the medium term.  

"As a result, although the short term market backdrop remains challenging, I remain deeply impressed with the work our staff are doing to improve service user outcomes and am encouraged by the positive medium term prospects for the Group."

About Priory

The Priory Group of Companies is dedicated to helping people to improve their health and well-being. We understand that in order for people to achieve high quality clinical and educational outcomes they need individually tailored programmes, suiting their specific needs.

Priory Group of Companies has established an unrivalled reputation for providing quality, inspiring innovation and delivering value for its service users. The Group currently treats more than 70 different conditions through a nationwide network of more than 270 facilities that support service users' health, care, education and specialised needs.  

As 87% of our services are publicly funded and delivered in partnership with commissioners, our teams work with commissioning bodies across the country to provide transparent pricing models and evidence-based care programmes.

The Priory Group website features a range of regularly updated stories and expert opinion pieces.  To help us to increase the sharing of our expert comment pieces, we would be grateful, where the article appears online, if you could include a link to our website, http://www.priorygroup.com, contained within the copy of the release.

Enquiries:

Andrew Jaques / James White, MHP Communications    [phone]