Attendo’s year-end report and report for the fourth quarter 2016: Attendo increases new beds and reduces queues to nursing homes
Attendo showed continued stable development in the fourth quarter of 2016. Net sales for 2016 increased in line with the company’s long-term financial goal. Operating profit (EBITA) increased by 7 percent to SEK 1,002m (933), representing an operating margin of 9.8 percent (9.5). The Board proposes a dividend of SEK 1.22 (0.54) per share.
Comments by Henrik Borelius, CEO
“The fourth quarter of 2016 showed continued stable development.Growth was good for own nursing homes. Attendo continued to increase the number of beds under construction, which creates a good platform for growth in future years.
Nursing homes and care homes in Own operations showed continued good growth, both organically and through acquisitions. The increase is explained mainly by new nursing homes, by higher occupancy in homes that were under start-up during the same quarter last year, and by acquisitions. Attendo continued to invest in new own homes, and eight units were opened in Finland and Sweden during the fourth quarter. Construction also began on 11 units in Sweden and Finland, which will provide 420 new beds. The total number of beds under construction at the end of the quarter was 1,935. This high level is partly an effect of acquisitions earlier in 2016, but mainly because Attendo has been successful in identifying the demand for new beds and rapidly translating this into construction starts. Market conditions in own operations were positive as the total market for care for older people grew more than expected and the private sector contributed to a greater extent than before.
Net sales in Outsourcing operations decreased slightly compared to the fourth quarter of 2015, as a result of ended contracts. During the fourth quarter of 2016, however, Attendo won net new contracts in outsourcing, and the total net new contracts won in full-year 2016 was SEK 180m. Underlying net sales in Staffing operations were slightly higher in the quarter compared to the corresponding period in 2015. The markets for Outsourcing and Staffing are expected to remain challenging but stable.
The design of the Finnish SOTE reform has continued to emerge. Health and social care will be organised into 18 regional counties, with the ambition for private and public providers to compete on equal terms. Freedom of choice will be introduced throughout the country for a wide range of services from 2019. Incorporation of municipal services will improve comparability between private and public provision, revealing differences in efficiency and quality in a way not previously possible. With its strong relationship to payors, wide geographical coverage and good access to doctors, Attendo has excellent opportunities to further develop the already-strong position.
Attendo works continuously to improve and develop its quality. In 2016, Attendo had an average quality index of 85 percent, which is on the same level as in 2015 and is high historically. Attendo also received good quality ratings in the Swedish National Board of Health and Welfare’s annual customer satisfaction survey of care for older people in Sweden. For home care, Attendo as a whole had a higher-than-average level of customer satisfaction, and Attendo’s lifestyle housing in care for older people showed a higher level of customer satisfaction than local authority homes and other private homes. Patient satisfaction in the Finnish health care operations remained high.
In summary, Attendo demonstrated good performance during the fourth quarter and in 2016 as a whole. We are establishing new homes at a high rate. This helps local authorities to reduce waiting times in care for older people, provides more customers with access to modern homes with good care, and gives Attendo good opportunities to achieve its financial targets in the coming years.”
Summary of the fourth quarter 2016
- Net sales increased by 3 percent to SEK 2,647m (2,564). Adjusted for currency effects net sales increased by 1 percent. Adjusted for currency effects and deconsolidation of subsidiary net sales increased by 4 percent.
- Operating profit (EBITA) increased by 12 percent to SEK 241m (215), representing an operating margin of 9.1 percent (8.4).
- Profit for the period amounted to SEK 151m (-9), which represents a profit margin of 5.7 percent (-0.4) and earnings per share diluted of SEK 0.94 (-0.06).
- Operating cash flow amounted to SEK 404m (324).
Summary of the period January–December 2016
- Net sales increased by 4 percent to SEK 10,212m (9,831). Adjusted for currency effects, growth was 3 percent. Adjusted for currency effects and deconsolidation of subsidiary net sales increased by 7 percent.
- Operating profit (EBITA) increased by 7 percent to SEK 1,002m (933), representing an operating margin of 9.8 percent (9.5).
- Profit for the period increased to SEK 649m (286), which represents a profit margin of 6.4 percent (2.9) and earnings per share diluted of SEK 4.05 (1.79).
- Operating cash flow amounted to SEK 805m (765).
- The Board proposes a dividend of SEK 1.22 (0.54) per share.
Invitation to teleconference
The report will be presented in a teleconference on 15 February 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:
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:
https://wonderland.videosync.fi/attendo-q4-report-2016
The quarterly report and other information material will be made public on:
www.attendo.com/investor-relations
Attendo AB (publ)
For further information, please contact:
Andreas Koch, Communications and IR-Director Attendo
Phone: +46 705 09 77 61
E-mail: andreas.koch@attendo.com
Stefan Svanström, Communications Director Attendo
Phone: +46 708 67 38 07
E-mail: stefan.svanstrom@attendo.com
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 15 February 2017.
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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