BREAKING NEWS: UK care home sale hits Bupa profit
Bupa has seen a drop in profit in 2018 as a result of the sale of part of its UK care home business and challenges in Australia.
Revenue for the global business was flat at £11.9bn with underlying profit down by 12% year on year to £613m.
Commenting on the results, Evelyn Bourke, Group CEO, said: “This was driven by the effect of our divestment of part of the UK aged care business, and challenges in our Australian aged care and health insurance businesses.”
Bupa completed the transfer of 110 care homes to HC-One in December 2017 (see Bupa transfers 110 care homes to HC-One). A further 22 homes were sold to Advinia Healthcare in February 2018 (see Advinia completes purchase of 22 Bupa care homes).
UK revenue for the business fell by 10% to £2.5bn in 2018 with underlying profit down by 22% to £156m. Care services accounted for 16% of revenue.
Bupa cited Brexit uncertainty, slow economic growth and public funding constraints as operational challenges in the UK.
Evelyn added: “Looking ahead, conditions in some of our key markets will continue to be challenging with a number of economic and political headwinds. However, Bupa’s strong financial position means we are well placed to continue to invest to meet the needs of customers. This financial strength enables us to balance short term delivery with long term investment for sustainable growth, while maintaining a focus on cost efficiency.”