Attendo's year-end report 2017 - New record in the number of new nursing homes, the Board has appointed Pertti Karjalainen as acting CEO
Attendo showed a record high number of new beds in nursing homes being established during 2017. Profit for the fourth quarter was in line with the same quarter 2016, but at a lower margin. The number of units under construction remains at a very high level and is laying a foundation for continued stable growth.
Comments by Henrik Borelius, CEO
“With a record high number of establishments and acquisitions, Attendo sharply increased the number of beds in own operations during the year. At year-end 2017, Attendo had 13,262 beds in own operations, an increase by 43 percent compared to previous year. The number of units under construction remains at a very high level and is laying a foundation for continued stable growth.
Own operations showed continued stable growth in both nursing homes and homes for people with disabilities. Attendo opened 14 own homes during the quarter: 11 in Finland and 3 in Sweden. Construction began of 8 new homes in Finland and 4 in Sweden. At the end of the fourth quarter, Attendo had 2,903 beds under construction.
Net sales in Outsourcing increased compared to the fourth quarter 2016, due to two combinations contracts in Finland started in early 2017. Net sales in Staffing were lower during the quarter compared to the same period in 2016. The markets for outsourcing and staffing are expected to remain challenging, but stable.
Profit for the fourth quarter was in line with the same quarter 2016, but at a lower margin. Improvements in planning and processes, acquisitions and contributions from units that were under start-up during the comparison quarter in 2016 made positive contributions to earnings. This was offset by the negative impact on earnings from home care in Denmark, lower contributions from integration care and new homes in own operations. Attendo intends to maintain a high rate of openings in forthcoming quarters, which initially will have impact on profits. For the full year 2017, Attendo delivered 9 percent growth at an operating margin of 9.7 percent, which exceeds the company's financial targets.
There is a distinct connection between employee commitment and high quality. Attendo strives to maintain industry leading quality and to recruit committed employees who are able to deliver excellent care. Attendo earned good scores in the Swedish National Board of Health and Welfare’s annual customer survey of recipients of care for older people in Sweden. Attendo's own nursing homes were given very positive assessments. Attendo will continue to work systematically to share best practices, introduce new tools and improve system support to provide more time for care and reduce administration. Employee surveys are one way of “taking the temperature” of internal commitment. The results from 2017 indicate continued high job satisfaction for Attendo as employer.
On March 1, I will leave my role as CEO after 18 fantastic years. I would like to thank all my colleagues throughout the company who drive Attendo forward every day through committed and long-term efforts. I would also like to thank all the local authorities, customers and shareholders that choose Attendo. Your trust is a key factor for our development. I am proud of what we have achieved together and I am convinced that Attendo has a strong platform for continuing to develop care for the benefit of individuals and society for a long time to come. I wish Pertti Karjalainen all the best in his new role. As one of the industry’s most experienced leaders, he has all prerequisites to continue to develop Attendo further. "
Summary of the fourth quarter 2017
- Net sales increased by 14 percent to SEK 3,011m (2,647). Adjusted for currency effects, net sales increased by 14 percent.
- Operating profit (EBITA) amounted to SEK 240m (241), corresponding to an operating margin of 8.0 percent (9.1).
- Profit for the period amounted to SEK 135m (151) corresponding to a profit margin of 4.5 percent (5.7) and earnings per share diluted of SEK 0.84 (0.94).
- Operating cash flow amounted to SEK 252m (404).
- The total number of beds in homes in Own operations was 13,262 (9,280), an increase of 43 percent. The number of beds under construction in Own operations was 2,903 distributed among 77 homes.
- The Finnish care provider Mikeva was consolidated in Attendo as of 1 November.
Summary of the period January–December 2017
- Net sales increased by 9 percent to SEK 11,157m (10,212). Adjusted for currency effects, net sales increased by 8 percent.
- Operating profit (EBITA) increased by 8 percent to SEK 1,084m (1,002), corresponding to an operating margin of 9.7 percent (9.8).
- Profit for the period increased to SEK 680 (649), corresponding to a profit margin of 6.1 percent (6.4). Earnings per share diluted amounted to SEK 4.24 (4.05).
- Operating cash flow amounted to SEK 763m (805).
- The board of directors is proposing a dividend of SEK 1.27 (1.22) per share.
New acting CEO as of March 1, 2018
The Board of Directors has appointed Pertti Karjalainen, Business Area Director Attendo Finland Care, to acting CEO for Attendo as of March 1, 2018, until a permanent CEO is in place.
Henrik Borelius will be at the disposal of the Board during the remainder of his employment period until May 19, 2018 and he will remain as a board member until the Annual General Meeting 2018.
“We are happy to appoint Pertti Karjalainen acting CEO of Attendo. Pertti Karjalainen has been 17 years in the industry and ten years in Attendo. He has developed the Finnish care operations in a remarkable way”, says Ulf Lundahl, Chairman of the Board in Attendo.
Invitation to teleconference
Investors, analysts and journalists are hereby invited to participate in a teleconference at 10:00 am (CET) hosted by Attendo’s CEO Henrik Borelius and acting CFO Rebecca Ericsson Birck.
To participate in the conference, please dial in on any number below at least ten minutes before the start of the call:
SE: +46 8 566 425 09
FI: +358 981 710 494
UK: +44 20 300 898 10
You can follow the presentation and the conference on the following page: https://tv.streamfabriken.com/attendo-q4-2017
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: +46 708 673 807
This information is such that Attendo AB (publ) is required to make public pursuant to the Financial Instruments Trading Act. The information was submitted for publication, through the agency of the Communication and IR-Director, on 15 February 2018 at 08.00 CET.
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 24 000 employees and is locally anchored with over 700 operations in more than 200 municipalities in Sweden, Finland, Norway and Denmark. www.attendo.com