Attendo’s report for the first quarter of 2017: High rate of establishment of new nursing homes and stable growth
Attendo continues to have a high rate of establishment of new nursing homes in the Nordic countries. Meanwhile, growth and operating margins continues to show a stable development, according to the first quarter results for 2017.
Comments by Henrik Borelius, CEO
“ The first quarter of 2017 was characterised by a high rate of establishment of new nursing homes and a stable earnings trend. Attendo sees a substantial continued need to develop own operations in care for older people and has successfully managed to turn this into construction starts in Sweden and Finland. In addition, Attendo won a number of outsourcing contracts in the first quarter, mainly in care for older people.
Own operations showed continued stable growth, both in terms of nursing homes and care homes. Attendo opened eight own homes during the quarter, seven in Finland and one in Sweden. In Finland, construction began on 14 new homes and in Sweden on two homes. At the end of the first quarter Attendo had 2,159 beds under construction. Attendo made a number of acquisitions in the quarter, in homes and day centres for people with disabilities, individuals and families, and in home care.
Net sales in Outsourcing increased compared to the first quarter of 2016, mainly as a result of two newly started combination contracts in Finland. Net, Attendo has won outsourcing contracts during the quarter of approximately SEK 40m. Net sales in Staffing operations were somewhat lower this quarter compared to the corresponding period in 2016. The markets for Outsourcing and Staffing are expected to remain challenging but stable.
The profit increased in the first quarter compared to the corresponding period 2016. The improvement in earnings was due to higher occupancy in nursing homes that were under start-up in the first quarter of 2016, continuous improvement work with processes and planning, and positive calendar effects. In 2017, Attendo will open more nursing homes than before. This is expected to affect profit negatively in the coming quarters.
The Swedish government has previously appointed a commission whose proposals would greatly restrict the opportunities for private providers in schools and in health and social care, if they were carried out. During the quarter, a round of consultation was concluded when the commission faced strong criticism from a majority of the consulted bodies, including authorities and municipalities as well as experts and organisations active in the field of welfare services. The proposals are not considered to address any real issue. They are deemed to be in violation of current legislation, and the impact assessment by the commission is deficient.
Recently, Attendo published its annual quality report, which documents the company’s work on improving and developing its quality. As one of many projects over the past year it is worth mentioning “Symfoni” at the Attendo Rødtvet nursing home in Norway, where Attendo has created an excellent living environment, with music therapy, animal husbandry and a sensory garden, which together have helped promote happiness, wakefulness and reduced use of medication among the residents. Another successful project concerns the care of diabetic patients, where Attendo’s Finnish medical centres have markedly increased the proportion of patients who reach their blood sugar level goals.
In summary, Attendo showed a stable performance in the first quarter in terms of profit, and a high rate of establishment of new nursing homes. By offering more customised high-quality homes for older people and people with disabilities, Attendo is able to contribute to shorter queues and create pleasant and dedicated living environments that respond to both customer needs and their personal wishes.”
Summary of the first quarter 2017
- Net sales increased by 8 percent to SEK 2,661m (2,472). Adjusted for currency effects net sales increased by 6 percent.
- Operating profit (EBITA) increased by 42 percent to SEK 279m (197), representing an operating margin of 10.5 percent (8.0).
- Profit for the period was SEK 181m (128), corresponding to a profit margin of 6.8 percent (5.2) and earnings per share diluted of SEK 1.13 (0.80).
- Operating cash flow was SEK 176m (143).
Invitation to teleconference
The report will be presented in a teleconference on 5 May 2017 at 10:00 am (CET). The teleconference will be hosted by Attendo’s CEO Henrik Borelius and CFO Tomas Björksiöö. The presentation will be held in English.
To participate in the conference, please dial in on any number below:
SE: +46 8 566 426 65
FI: +358 9 817 104 94
UK: +44 20 30 08 98 04
You can follow the presentation and the conference on the following page:
The quarterly report and other information material will be made public on:
Attendo AB (publ)
For further information, please contact:
Andreas Koch, Communications and IR-Director Attendo
Phone: +46 705 09 77 61
Stefan Svanström, Communications Director Attendo
Phone: +46 708 67 38 07
The information above is such that Attendo AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08.00 CET on 5 May 2017.
Attendo - the leading care and healthcare company in the Nordics
Attendo is the leading private provider of publicly financed care and healthcare services in the Nordic region. The company was founded in 1985 and was first to provide outsourced care for older people in Sweden. In addition to care for older people, Attendo provides care for people with disabilities, individuals and families, and, in Finland, healthcare and dental care. Attendo has more than 20 000 employees and is locally anchored with over 500 operations in more than 200 municipalities in Sweden, Finland, Norway and Denmark. www.attendo.com