care unlimited
TRANSCRIPT
Presented By
Kaleem KhanShahid Khan
Business Plan“Care Unlimited”
Care Unlimited Group• What do we do?
• Cardiff-based residential care home for the elderly (65+)
• What are we looking for?
• Venture Capital Investment of £2million • £1.5million being raised via property mortgage• Owner investment of £500,000
• What are we prepared to give?
• 49% stake of the Care Unlimited Group
Industry Analysis• Growing elderly population within the UK
• Demand increasing for residential care homes within the UK
• For-Profit Residential Care Home organisations holding 50% of the market share in 2008 & increasing
• A resilient 92% average occupancy rate throughout the UK 2007/2008
• Considered ‘safe’ to investment funds and other investor groups
Market Analysis • Potential Market Size
• 9.8 Million• Wales 3 Million
• Population• Cardiff Regional Market- 51,645
• Growth Rate• 0.7% Increase per year• 32% Growth by 2033.
• Market Scope - Mature & Fragmented
• Marketing Strategy - Local Healthcare Authorities, Website Advertising, Sponsorships and Networking.
Business Model
• 45 Bed rooms (30 En suites & 15 regular), fully furnished
• Short – Term care contracts (max 4 months)
• Long-Term Care Contracts (max 12 months).
• Government placements and private residence.
• All Meals and regular medical checkups included
• 24hrs support staff and security.
• Daily social and entertainment activity plan
• People-centred and environment friendly approach
Cont...
Business Model
Room with En Suite (30) £550 P/W
Regular Room (15) £450 P/W
Estimated minimum Occupancy Per Annum 85%- £982,350 P/A
Estimated Income per week £18,891.34 P/W
Estimated Costs Per Annum
(excluding salaries)
£47,200 P/A
Estimated Cost Per Week
(excluding salaries)
£907.70 P/W
Pricing Structure for Care Unlimited:
Competitor Analysis70 Care Homes & 18 Nursing Homes in the Cardiff Region.
Service Competitors XXX ltd
Bed rooms types Single & Shared Single & Shared with En-suite
Bedding & furniture Customer to carry their own Fully Furnished
24hrs assistance Few operators only (mostly 14hrs) 24 Hrs Assistance
Social Activities Basic interaction activities Social, Health & Religious activities
Awareness activities News papers provided T.V and FM available in all lounges
along with News paper reading facility
Care period Long & Short Long & Short
Facilities to bring pets Accepted by few care homes Accepted but with limited access
Nursing Activities Not provided Fortnightly visits for basic checks
Management Team
Rollout Plan
Risk Associated
• Changing Economic Conditions
• Availability of decent property on time
• Change in Healthcare Registration regulation
• Drastic change in safety standards
Exit Strategy
Points to note:
• Given the recent financial crisis the Care Unlimited Group is in a unique position to purchase specialist property at a considerable discount.
• Commercial property prices are expected to continue appreciating at an estimated 6.1% over the coming year (Reuters).
• Sale of business to either larger competitors or local competition should be achievable within a currently highly fragmented market looking to consolidate.
• With the purchase of the required land and building at £3.5 million, a small appreciation in value will gain significant equity.
Financial summary
Cash Flow- Year 1: Cash Flow- Year 2: Cash Flow Yr 3:
£270,000 Turnover £932,000 Turnover £1,057,000
46% Occupancy Levels 80% Occupancy Levels 90% Occupancy Levels
£3.7 Million
(Building& Land)
£50,000 (F,F&E) N/A
Outgoings:
(incl-Dep)
Outgoings:
(incl-Dep)
Outgoings:
(Incl-Dep)
£566,000 £767,000 £895,000
Financial summaryBank Loan:
£1,500,000
Time Period:
20 Years
Rate:
3.25% (Fixed)
Interest Charges:
£3,750 p/m
Loan Servicing:
£7,000 p/m
Total Payable:
£1,550,000ROI:
Repayments to start in the 4th Year at 10% (£200,000) of invested capital by way of dividends.
• Setup 4 more Care homes in Cardiff Area by next 5 years
• Enter other regions like Scotland 7 Central England
following 5 years
• Gradually improve portfolio by entering new segments
such as Nursing Homes, Dementia Care, Respite Care, Etc.
Future Growth Strategy
Questions & Answers
Thank You!!!