Employee-owned care home operator Shaw healthcare reported a drop in profit due to higher costs in 2023.

The care home operator posted normalised profit before tax of £5.9 million in 2023 down from £10.6 million in 2022.

Turnover for the business was up, however, to £128.2 million compared with £120.2 million in 2022.

Russell Brown, chief executive Officer for Shaw healthcare, said: “Our result for the year ending 31 March 2023 included a number of exceptional non-trading items which bolstered our accounting result.

“Our trading result was £5.9 million profit before tax, which was down on the prior year, reflecting the fact that fee uplifts obtained from local authorities and NHS bodies did not keep pace with the significant cost inflation being seen in the sector. Almost 50% of our trading profit is generated from our non-care activities which help to support our care division operations.

“As an employee-owned business, we reinvest our profits into paying our employees the real living wage as well as improving the environment of our properties and enhancing the quality of care being delivered to our residents.”

EBITDA fell by 4.9% to £12.4 million from £17.3 million, however, net debt also fell to £1.6 million from £10.9 million in the previous year.

Staff remuneration costs rose to £77.3 million from £72.6 million with directors remuneration down to £802,000 from £873,000.