HC-One has cited rising inflation and pressure on publicly funded fees after posting a £63 million loss in the financial year ending September 2023.

The care home operator reported an operating loss of £63.7 million compared with a £6.1 million loss in the previous year.

HC-One said: “As HC-One has continued to recover from the impact of Covid-19, against an environment of rising inflation and costs, with sustained pressure on publicly funded fees, the group reported an operating loss of £63.7m, after deducting exceptional costs of £62.9m in the year.”

Turnover for the business, which acquired Ideal Carehomes in October 2022, rose to £667 million compared with £653 million in the previous year.

Staff costs rose to £485 million in the year from £472 million in the previous year.

The salary of their highest paid director was £622,000 compared with £686,000 in the previous year.

A spokesperson for HC-One said: “At HC-One, our purpose is to support those in our care to lead their best life.

“Our accounts demonstrate that we continue to make excellent progress on delivering our strategy and, with the support of our stakeholders, are investing at scale into our workforce and our vital state-funded services.   

“This year we have been proud to continue to significantly invest in our colleagues, including through a £32.5 million investment in pay, which raised the rate of our lowest paid colleagues by almost 10% and brought over 80% of our workforce to Real Living Wage or above, with all care colleagues able to earn the Real Living Wage after two years of service. Our investments in colleague pay, training and career development have significantly reduced our turnover rates to levels well ahead of the sector average.

“Our £93 million refurbishment programme continues and represents the largest care home upgrade programme in the NHS and local authority funded care home sector in the UK. This programme will ensure that our residents and colleagues can live and work in more specialised, comfortable homes, better fit for the future of care. We are also investing in our new build programme which is bringing a new generation of innovative, sustainable and purpose-built homes to the sector.   

“The advances made in colleague pay, our service offerings and the extensive upgrades to the homes themselves, support our continuing objective of always enhancing the quality of care our residents receive.

“Despite the pressures facing the whole sector, including sustained pressure on publicly funded fees, we remain fully funded and are continuing to invest in initiatives that are directly addressing some of the biggest challenges facing care providers. As such, we are confident in continuing to progress our mission of being the first choice for those we care for, their families, colleagues and commissioners in the communities we serve.”