Today BBC Scotland has this below, reminding us of the above:

BBC Scotland, in June 2023 exposed a Care Home owner who seems not to be a Tory or Labour donor. It's taken them three years to find one. Three years ago, we had this:

By stewartb

So the care home visited by Anas Sarwar MSP is being used to justify his claim of care homes at ‘breaking point’? If so, this company’s situation must have changed radically since 22 December 2022.

This is the date Applecross Nursing Home Limited submitted its Annual Financial Statements for the year ending 31 March 2022 to Companies House.

See https://find-and-update.company-information.service.gov.uk/company/SC177933/filing-history

Notably, the document includes a ’Strategic Report’ signed off by the company’s directors. Here are some key extracts (with my emphasis):

– ’The company has ACHIEVED GOOD RESULTS of (sic) the year under review, despite difficult market conditions affecting the sector generally.’ – good results but at ‘breaking point’?

– ’The results for the financial year REFLECT CONTINUED INVESTMENT IN THE BUSINESS INCLUDING the conclusion of A MAJOR REFURBISHMENT PROGRAMME’ – a major investment was made despite being a business at ‘breaking point’?

– Turnover: to 31 March 2021 = £3,819,415 and to 31 March 2022 = £4,317,923 – turnover up by c. £500k whilst at ‘breaking point’?

– Gross profit percentage: to 31 March 2021 = 22.87% and to 31 March 2022 = 26.01% – gross profit up and at ‘breaking point’?

– Profit after tax: to 31 March 2021 = £293,646 and to 31 March 2022 = £288,334 – profit holding up pretty well but at ‘breaking point’? (Cause of drop in profit is a higher tax bill – corporate taxes levied by HMRC.)

– Equity dividends paid: in FY to 31 March, 2021 = £167,000 and to 31 March 2022 = £167,000 – level of dividend payments sustained and yet at ‘breaking point’?

– Directors’ forward look to 31 March 2023 states: turnover ‘likely to be CONSISTENT’ and ‘PROFITABILITY WILL CONTINUE AT SATISFACTORY LEVELS’ – ‘satisfactory’ whilst at ‘breaking point’?

– Directors are also expecting to reduce reliance on agency staff – ’The directors therefore EXPECT AN IMPROVED FINANCIAL PERFORMANCE …’ – confusing isn’t it: improved business prospects whilst at ‘breaking point’!

– And: ’The Board is confident that THE EXCELLENT LEVELS OF SERVICE PROVIDED will ensure the company CONTINUES TO BE COMPETITIVE IN ITS CHOSEN MARKET’. – despite being at ‘breaking point’?

The company’s financial statement also notes: ’The directors have considered the impact that the Covid-19 pandemic could have on the ongoing trade of the company.’ It then goes on to note:

– ‘The directors DO NOT EXPECT THE COMPANY TO EXPERIENCE A REDUCTION IN PROFITABILITY OR TO INCUR ADDITIONAL LOSSES while the impact of the virus persists but WITH THE CUMULATIVE RESERVES AND THE AVAILABILITY OF GOVERNMENT ASSISTANCE they are CONFIDENT the company can continue to operate as a going concern. Sustainability payments from the Government should REDUCE ANY IMPACT OF COVID …’.

So no reduction in profitability, adequate cumulative reserves in place and in receipt of government support – all whilst at ‘breaking point’?

Something is very wrong here: the message being given out by Mr Sarwar following his visit to this particular care home, to Applecross Nursing Home, is substantially at variance with the company’s trading position based on its formal statement of accounts and strategic forward look as signed off in December 2022.

An example of Labour seeking to deceive the public in Scotland? I trust the directors of this company are not knowingly complicit in the misrepresentation! Is the care home sector willing to be exploited by Labour’s gaslighting for electoral advantage in Scotland?