Partner Article

Southern Cross looks to defy public spending cuts

THE UK’S largest care home operator Southern Cross today vowed to prove its worth to the taxpayer amid reduced admissions from local authorities during the third quarter.

The Darlington-based group saw its revenue grow to £238m in the three months to June 30 – a £2m increase on last year.

Meanwhile the firm’s net debt was reduced by £3.6m during the period to £22.1m as pre-tax earnings dipped by £7 on last year to £12.1m.

The company said its short-term outlook remained challenging as pressure grows to reduce overall public spending.

The firm said: “As a result of this pressure, the Group has continued to experience a reduction in admissions from local authorities during the third quarter.

“The Group is confident that a well informed assessment of the true costs of delivering alternative forms of care will demonstrate that residential care delivered by private sector, low cost/high service quality operators represents both the lowest cost to the taxpayer and the best possible experience for those requiring such care, when all factors are taken into account.”

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