The Courier & Advertiser (Angus and Dundee)
Agency staff costs hit profits atAbbotsford
A FIFE-BASED care home company’s pre-tax profit fell by more than 60% last year, with substantially increased agency staff costs cited as a reason.
Tur nover at Abbotsford Care (Glenrothes) Ltd, which operates care homes at eight sites in Fife, was up 25.5% at £8.6 million.
Sales and other operating income were up 28% at £6.5m and administrative expenses up 50% at £1.9m.
The company’s payroll rose by a third during the year to 360 staff, and total payroll costs were up 15.8% at £5.3m.
The profit before tax was down from £517,810 to £193,474, and the gross profit percentage was down from 26% to 24.2%.
Net assets were up to £2.4m, with £257,116 invested in fixtures and fittings across its eight nursing homes.
Director Karen McKechnie said the key non-financial performance indicator was occupancy levels, the average of which for the year to March 2014 was 82.64%.
She said the company acknowledged the importance to profitability of maintaining high occupancy levels to maximise the benefits from the fixed costs at its homes in Cupar, Dunfermline, Newburgh, Kirkcaldy, East Wemyss, Glenrothes, Leven and Lochgelly.
Notes with the accounts explain that the company rents nursing homes from Abbotsford Property (Dunfermline) Ltd which is controlled by Mrs McKechnie’s husband Marshall. Mrs McKechnie is a shareholder.
The company also rents nursing homes from the Abbotsford Nursing Home Partnership of which Mrs McKechnie is a partner.
Construction of Abbotsford’s new £6m Raith Manor site in Kirkcaldy is nearing completion.
The finished development will provide modern accommodation for 60 residents once it opens its doors in June, and employment for 80 staff.
The project received financial support from the Bank of Scotland, which gave the funds for the construction of Abbotsford’s £3.5m Headwell House in Dunfermline and prompted the group’s expansion. business@thecourier.co.uk