Daily Mirror

Reasons Four optimism...

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Struggling care home chain Four Seasons yesterday insisted business was improving.

The firm, which has 20,000 elderly residents across 450 homes, said profits jumped 25% to £13.6million between April and June. Revenues were also up, and its homes were the fullest they’ve been for two years.

The group says it has nearly £40m of cash which, with plans to sell loss-making care homes, would “provide sufficient medium-term finances”. That’s important as the firm has a £525m debt pile and £50m of annual interest payments.

The group, owned by City financier Guy Hands’s private equity vehicle Terra Firma, admitted in April that it didn’t have enough money to meet its long-term needs, adding that it is exploring its options.

Four Seasons chairman Robbie Barr said: “In common with all care providers, we continue to feel pressure resulting from the challengin­g market environmen­t and underfundi­ng of care. However, there have been positive developmen­ts.”

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