Tunstall Healthcare Group (‘Tunstall’ or ‘the Group’), the market leading provider of technology enabled care services, today publishes its annual results for the year ended 30th September 2015.
“Strong growth for 2015 and successful launch of new five year growth strategy”
Operating cash flow % of EBITDA
Percentage changes measured on a constant currency basis against Full Year 2014.
- Tunstall reported a strong underlying profit performance for the year with EBITDA of £44.3m up 10.3% on a constant currency basis.
- Strong financial performance in 2015 led by the UK and Southern Europe:
- Following a successful turnaround the UK delivered 7.3% revenue and 15.4% EBITDA growth due to buoyant Independent Living equipment sales and new Assisted Living product offerings benefitting from an improving housebuilding sector
- Southern Europe achieved 9.5% revenue and 18.7% EBITDA constant currency growth, with strong organic growth generated from Connected Care Managed Service contracts in Spain.
- EBITDA margin increased to 20.9% through careful control of costs and benefits of economies of scale.
- Operating cash flow represented 103.7% of EBITDA (2014; 86.3%).
- Opening of Innovation Centre in Whitley, UK to research, develop and exhibit new product and service propositions at the leading edge of Connected Healthcare.
- Launch of Moorgate Mill, a landmark UK development in Blackburn, Lancashire using integrated technologies to provide new levels of support to people with complex needs.
- Launch of Communicall ViIP, the UK’s first IP housing communications system, using digital technology to enhance the resident experience and set a new benchmark in service provision.
- Further bolt-on acquisition activity:
- In the Nordics, successful purchase of Mohinet Lahti Oy, an Independent Living equipment supplier based in Finland.
- In North America, purchase of Mountain Home Medical in Colorado and the acquisition of two smaller Connected Care providers in Hawaii and New York State.
STRATEGY REVIEW AND OUTLOOK
During the year Tunstall launched its Connected Healthcare 2020 strategy which aims to deliver a sustained improvement in the Group’s financial performance and increased profitability over the next five years. This growth will be supported by a five-year investment programme of ca. £100m in Tunstall’s infrastructure and people, to enhance and improve the Group’s manufacturing, research & development, product marketing and overall service capability.
This strategy will capitalise on the market’s shift towards digital and IP infrastructure by providing increasingly technology-led care offerings. Supported by the structural dynamic of ageing populations and growing pressures on health and social care systems, Tunstall will deploy its technology-enabled solutions to lead new models of health and social care.
Looking forward, Tunstall is in an excellent position to take advantage of the growth opportunities in its core markets as it adapts to the changing needs of its customers and technology landscape.
PAUL STOBART, CHIEF EXECUTIVE OFFICER, COMMENTED:
Tunstall delivered a strong performance in 2015 and strategically it has been a transformational year for the business. We have solid foundations – our scale, track record, customer insight and market leading positions across 14 countries – and this year we developed a strategy to adapt these strengths for an increasingly connected world. Tunstall today is beginning to lead new and important models of health and social care that will transform the lives of many and deliver strong growth for the business over the next five years and beyond.