Introducing Care UK Andrew KnightCEO, Residential Care Services
Introducing Care UKNationwide reach via 119 homes and 8,000 beds
• Ideally positioned in a growing market with favourable long term dynamics
• A leader in quality, offering a full range of care types with a strong focus on nursing
• Continuing investment in market leading technology and business systems
• Strong revenue mix of private pay and inflation-adjusted long term contracts
• Proven development model - 40+ new homes since 2013 and a further 23 by end of 2022
• Strong financial growth profile (12% revenue CAGR since 2014) and high cash flow generation
Future new builds
Vintage builds
Core estate
Care home sector in growthUK market expected to reach £26bn by 2025
• ONS predicts 36% growth in over 85s 2015-25
• 1 million people living with dementia by 2030
• Rising property values and private pensions making an increasing number ineligible for government funded care
• Self-pay sector will continue strong historic growth in value (6.3% CAGR vs. 3.0% public)
• Rising complexity of needs is predicted to drive a 3.6% CAGR rise in nursing volume
• JLL research estimates a 70,000 bed shortage in the next eight years
• Challenges with quality of care home stock –less than half purpose built and an increasing number not fit for purpose
Investing in a premium customer experienceRegulators’ quality baselines are no longer enough
• Customers visit 2-3 shortlisted homes
• 62% have a journey into care of less than three months
• Form a rounded view of the service with online research – 75% visit our website before enquiring
• Increasingly high expectations on ‘quality’ driven by both the resident and relative perspectives
• Choice and control (through care, lifestyle and hospitality) are what define the premium experience
Investing in the self-pay opportunityProven development platform delivering a strong return
40 homes opened since 2013
• Premium homes seeking to address the capacity shortages in the private market
• 79% private revenue for homes opened in the last four years
• 90% of new homes have at least a good rating (including 14% outstanding)
Opening 23 homes by end of 2022
• Replicable blueprint for site selection, planning, build and commissioning
• Average new development expected to add £1.8m of mature EBITDARO
Creative approaches to public careOpportunities for mutually beneficial public partnerships
• Spending on long-term care was £46.4bn in 2016, of which £10.9bn was on long-term social care
• c7,000 beds deregistered in 2017/8, driving occupancy rates to an all time high of 89.4%
• More than 1500 beds under inflation-linked long term contracts
• Working with more than 250 local authorities and CCGs across the country
• Innovative approaches needed to support future demand – exemplified by our landmark development programme with Suffolk Council
• Green paper and funding reviews
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