Nursing sector

We assisted a Group of companies based in the South of England which provided residential care to children aged between 8 and 17 with behavioural and emotional difficulties.

The Group operates seven homes and encountered trading difficulties primarily as a result of changes in legislation such as the introduction in the minimum wage, minimum skill requirements, employee checks with the Criminal Records Bureau and the requirement for improved facilities at each home which significantly increased the cost base of the business. Inadequate accounting and management information also contributed to the Group's difficulties.

As a result of its difficulties, PAYE and NI arrears totalling approximately £135,000 were restructured over a period of 12 months with HM Inland Revenue. An instrumental aspect of the Group's turnaround strategy was the refinancing of one of the homes which also enabled a bullet repayment to be made to the Revenue.

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