CLEEVE HILL HEALTHCARE LIMITED

Other

Funds Requested

£50,000.00

Offered so far

£0.00

Loan term

12 MONTHS

Auction Closed

2015-10-26

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About the Business

Company Name: CLEEVE HILL HEALTHCARE LIMITED Company Number: 04174718
Business Type: Other Years Trading: more than 10 years
Business Location: CHELTENHAM

About the Risk

Risk rating

B

Default rate

6.90%

Bad debt rate

5.67%

About the Security

Security Offered:

Personal Guarantee - PG from director and majority shareholder

Est. Equity: 0.00

Risk Indicators Identified:

Important Files

Who are we?

Cleeve Hill Healthcare Ltd owns and operates 3 care homes with a valuation of £10.5m and borrowing of £9m across this company and it's associated companies under common ownership.

The other companies include Cleevelink – a home care business doing 23,000 hours of care per week, RRFM – an ambulance provider and construction services company & Elate Training Ltd – providing training services in house, apprenticeships and short courses with a link to healthcare and safety. Total value of the companies approaches £19m.

Turnover for the care homes is £3.5m and for the rest of the companies totals £15.5m making an annual turnover based on the last 3 months run rate of circa £19m and a total Ebitda of £2m based on the last 3 months run rate.

The three care homes employ 150 staff including management. The other companies employ a further 550 staff.

The care homes have two major contracts – one with the NHS for 6 intermediate beds at Cleeve Hill for 3 years and one with Swindon Borough and NHS CCG (Swindon) for 4 beds for 2 years.

The remaining clients – 100 beds in total – are mostly private with average fees at Cleeve Hill at £920 per week per client. Occupancy average in excess of 95%. The key statistics are attached.

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Loan Offers

What is the loan for?

Our short term aim is providing the business with working capital. In particular an element is required to convert two dining rooms at Cleeve Hill into two extra bedrooms. Planning is not required and CQC do not require any additional registration as we have a registration for 50 beds but only use 48 beds. Building regulation permission would be needed but presents no particular issues in obtaining it according to the Building Surveyor who is to manage the works.

The costing is attached. We are putting a part of the £100k per the note below and seek the additional loan to provide the balance of funds. We expect to be able to pay the loan back over a shorter period that 3 years as we would expect to pay those funds back first. The balance of our £100k is being used for supporting the growth of Cleevelink.

Why consider investing?

Whilst the companies cannot borrow further funds from it's primary Bank – Barclays, the companies have a healthy equity surplus – circa £7.5m. The Directors and senior management are very committed to the continuing improvements to all the businesses by ensuring quality is always at the forefront coupled with profitable and sustainable growth. The companies services are much in demand often on a negotiated basis. Profits are substantially improved over the last 12 months as both growth and savings as planned have taken hold an matured. Further key savings should add to the profitability such as route optimisation.

The Directors have recently added £100k from their own funds to support the businesses. It represents a significant investment and commitment to the businesses going forward.

We hope a lender will be encouraged by the commitment of the senior team and by the extra committed funds placed into the business.

Security

The loan is top be secured by way of a directors personal guarantee

The property has an estimate value of £425k and estimated equity of £245k

The director is a property owner. His property has an estimate value of £425k and estimate equity of £245k. The Director director has a number of current Personal Guarantees to other finance providers to the extent of approx. £226k

RebSoc Disclosure

1. In the MA the overheads are showing not as a cost but as an addition to profit. This is because this figure is an amalgamation of the usual overheads of £536036 and a receipt in the period of £594369 which is the settlement of a claim against a financial institution in respect of the mis-selling of interest rate swap derivatives.

DateAmountCapitalInterestReceived
23/11/2015£4,541.51£3,866.10£675.41
23/12/2015£4,541.51£3,918.32£623.19 (6 days late)
23/01/2016£4,541.51£3,971.25£570.26
23/02/2016£4,541.51£4,024.90£516.61
23/03/2016£4,541.51£4,079.27£462.24
23/04/2016£4,541.51£4,134.37£407.14
23/05/2016£4,541.51£4,190.22£351.29
23/06/2016£4,541.51£4,246.82£294.69
23/07/2016£4,541.51£4,304.19£237.32
23/08/2016£4,541.51£4,362.33£179.18
23/09/2016£4,541.51£4,421.26£120.25
23/10/2016£4,541.51£4,480.98£60.53
Total:£50,000.01£4,498.11