Barchester enjoys post-Covid bounce in profits
Barchester Healthcare has reported an eightfold rise in pre-tax profit in 2022 as services returned to normality following the Covid pandemic.
Pre-tax profit amounted to £31.8 million compared with £4.1 million in the previous year.
Turnover for the business rose to £766.8 million from £675.9 million in 2021.
Group chairman John Coleman said: “Barchester traded strongly throughout 2022 and life in our services returned to normality following the Covid-19 pandemic. Enquiries for places in the care homes and hospitals were in excess of pre-pandemic levels and occupancy levels increased steadily from April onwards and are now at pre-pandemic levels.
“The easing of restrictions allowed us to progress with the maintenance and enhancement of the property portfolio to help maintain the condition of the homes for the enjoyment of our residents.
“We would like, once again, to thank the staff who worked so tirelessly and with such dedication throughout the year to care for the residents and patients who stayed with us. This is reflected in our sector-leading training, pay and benefits packages.”
Operating profit more than doubled to £64.2 million from £31.9 million in 2021.
Staff costs for the business rose from just under £390 million to £395 million.
The group benefit from £16.68 million in government grants including £14. 4 million from the Infection Control Fund.
The larger Covid-19 related costs incurred during the year included £16.1 million across agency and recruitment to maintain staff rotas, £4.5 million in sick pay and £2.5 million in PPE.
Directors’ remuneration rose from just under £2 million in 2021 to almost £3 million.
With the highest paid director, chief executive Dr Pete Calveley, almost doubling his remuneration from £898,000 to £1.7 million.