Luxury care provider Hadrian Healthcare is ploughing £20m into expansion plans this year after growing profits 34% despite incurring significant costs as it put development plans into action.
Founded by Ian Watson, the firm develops and operates luxury care homes and now has 11 sites across the North East, having expanded in the last two years to add venues in Wetherby and Scunthorpe to its portfolio.
The firm seeks prime locations and designs and develops each home to a very high standard, including luxurious touches including bistro cafes, cinemas, ballrooms, bars, in-house chefs, private en-suite rooms and gardens.
The new openings have aided a rise in turnover to £17.2m for the year ended March 2014, a lift if 20% on the previous 12-month period’s £14.3m.
Operating profit soared by 34% to £3.65m in the period, and profit for the financial year amounted to £2.28m after extraordinary costs.
Chairman Ian Watson said the rise was particularly pleasing because the financial figures cover a year in which much expenditure was made in new development – and he said further investments of £20m will be made this year to carry the Hadrian Healthcare brand further afield.
Last year, the firm made a key land acquisition in Leeds and construction is almost complete on the site.
Meanwhile, new facilities are also poised to open in Knaresborough, and further expansion is also planned for Harrogate.
The new additions will take employees number past 850 – topping last year’s increase in the ranks of 144, a 25% increase which took total headcount to 716.
Mr Watson said: “These results largely reflect our trading period for 2013 which was a year in which we carried out significant new development and incurred substantial one-off commissioning costs.
“Despite this it was still very pleasing to see our net profitability across the group increase quite dramatically.
“2015 promises to be another year of additional new investment as we will open our new facilities in Knaresborough and Leeds, which are currently under construction. These two new services represent an additional new investment of over £10m and will create around 150 new jobs.
“Furthermore, following our recent acquisition of a substantial new site in Harrogate town centre, we shall be submitting a planning application for a redevelopment and new build scheme on this site very soon.
“We are extremely excited by the new project in Harrogate which will see us investing a further £10m to create the most innovative and highest quality elderly care facility in the UK.” He added: “We will be making further announcements of our plans sometime soon which will include details of our new ideas for the delivery and provision of the very highest standard of personal care services.”
Mr Watson was a commercial lending banker until he founded the business in Gateshead in 1996, eventually selling it to a rival in 2006 for an eight-figure sum.
The six homes he had set up were taken over, but as part of the deal he kept the Hadrian Healthcare name, allowing him to get back into the business within a year.