|By PR Newswire||
|August 29, 2013 02:01 AM EDT||
LONDON, August 29, 2013 /PRNewswire/ --
Group Financial Highlights
- Revenue for Q2 2013 increased by £1.8m to £118.6m, a rise of 1.5% (Q2 2012: £116.8m), driven predominantly by the contribution from acquisitions in the Craegmoor division undertaken during 2012 and continuing maturity of homes in Amore
- Adjusted EBITDAR is down 8.4% to £34.0m (Q2 2012: £37.1m) and Adjusted EBITDA is down 9.6% to £31.0m (Q2 2012: £34.3m) primarily due to a deterioration in the performance in Education and £1.4m cost of wage inflation as well as increased quality assurance amounting to £0.7m
- Revenue YTD 2013 increased by £3.2m to £233.9m, a rise of 1.4% (YTD 2012: £230.7m)
- Adjusted EBITDAR YTD 2013 down 9.4% to £65.8m (YTD 2012: £72.6m) and Adjusted EBITDA down 10.7% to £59.8m (YTD 2012: £67.0m)
For a copy of the full financial report for the three and six months ended 30 June 2013 please visit http://www.priorygroup.com/investors/financial-performance
Commenting on the results, Priory Group Chief Executive Officer Tom Riall said:
"Overall, trading has been in line with management's expectations with a continuation of the overarching conditions experienced during Q1.
"As anticipated, our Education division continues to be adversely affected by Local Authorities seeking to place increasing numbers of 16-19 year olds into mainstream colleges rather than further education colleges as well as the shift away from a 52 week, residential model to more local and day placements. We continue to adapt our business to meet these challenges and are working closely with Local Authorities to provide alternative options in this regard.
"The commissioning landscape remains in a transition phase following the implementation of the Health and Social Care Act and funding delays continue to adversely affect the Group's healthcare businesses. However, our links within the NHS remain strong and we see our recent joint venture with Greater Manchester West Mental Health NHS Foundation Trust as a good opportunity to build even further on these relationships via an innovative new way of partnering with one another.
"We continue to make considerable investment in the business to meet the challenges arising from increasing regulatory pressure, resulting in better compliance, and have also invested in our new business development and tendering capability.
"Our work to improve patient outcomes continues to differentiate us from other providers and the Group remains well positioned to capitalise on the long term fundamentals underpinning the markets in which we operate. However, in the short term, it is prudent to assume that the market uncertainty we are currently experiencing will continue to undermine our performance for the remainder of 2013."
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 85% 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.
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1. Excludes exceptional non recurring items and charges for future minimum rental increases
Enquiries: Andrew Jaques / James White, MHP Communications, +44(0)20-3128-8100