Partner Article

Higher fees lift Southern Cross

Rising fees helped to offset falling occupancy rates at Darlington care home operator Southern Cross, allowing the group to increase revenues over the last three months of 2009.

In the group’s interim management statement for the first quarter of the year, revenue increased by 3.1% to £248.3m, reflecting an increase in the average weekly fee of 4%.

However, the average group occupancy rate fell to 86.4% - compared to 89.2% in 2009 - and average occupancy of the mature portfolio was 87.6%, down from 89.8% the previous year.

The care operator negotiated a fee increase for its privately funded clients of 3.7%, effective from this month, while discussions are still ongoing with local authorities and health authorities.

During the period the group repaid £32m of bank borrowings, reducing its committed bank facilities to £78.8m.

This was posted in Bdaily's Members' News section by Ruth Mitchell .