With all the changes at Tunstall Healthcare Group [TTA 2 Sep, 10 Apr], their Companies House filings due 30 September for the 2019 fiscal year might tell us more about their status prior to the entry of their new funders Barings, M&G, and a possible third investor. Tunstall files three main reports: one for Tunstall Healthcare (UK) Limited, for Tunstall Healthcare Group Limited, and Tunstall Group Holdings Limited, the holding company. The UK unit and Tunstall Group Holdings filed by the 30 September deadline; the Healthcare Group has not filed as of today.
Tunstall UK’s report is in PDF here. Revenue in the UK crested the £100 million level, up over £3 million from 2018. Of this, the core UK revenue amounted to £68.2 million, up 0.8%, with the remainder export trade with other Tunstall companies. Operating profit was, before adjustment for EBITDA, £27.4 million, adjusted to £16.8 million, down from 2018’s £19.4 million.
- The report also notes revenue growth for Connected Care Managed Services and Group Living Services. 2019 was challenging for Group Living Installations and Digital Health with continued declines, though the report adds some optimism for 2020 due to cloud-based services, for customers to use their own devices, and–of course–to COVID-19 and remote monitoring’s rise in most areas.
- COVID-19 rears its gloomy head here even though outside the report period. On page 5 is an assessment of the company as a ‘going concern’; even factoring in a gloomy second late 2020 COVID lockdown scenario, the directors believe that the company will continue to operate and comply with its covenants. On page 6 under ‘events after the financial period’ is a further explanation of this.
- Finally, the new financing is referred to on page 7. Tunstall Group Holdings has been purchased by a Jersey-based group. It was restructured to reduce its existing debt and establish a new available loan facility of over €20 million.
Tunstall Group Holdings’ (TGH) report is in PDF here. Their global revenue amounted to £216.7 million with an operating profit of £47.9 million before adjustment for EBITDA, £19.5 million adjusted. Both were reduced from 2018. The consolidated income statement, as in 2018, shows a consolidated loss of £71.1 million, reduced by £15 million from 2018. An additional note on the restructuring is the forgiveness of the balance of £531 million owed to the financing arm TGH Acquisitions Limited (page 11).
- The Americas sale is detailed on page 85. It is easy to see why the unit was sold, as in 2018 it had an operating loss of £4.3 million on £31 million in revenue. Factoring in asset disposal and other parts of discontinued operations, it’s fortunate it’s a one-time only event.
Jersey-based organizations, of course, enjoy far more favorable taxation structures. This Editor’s limited understanding of UK filings is that the Group will have to file with the Jersey Companies Registrar, but the UK group will have to file with Companies House as operating in the UK. If any Reader can clarify this, please comment below.
Charterhouse now finally lists Tunstall as one of their ‘realised’ exits. A long and unprofitable road from 2008 to 2020.
Hat tip on the reports to a Reader in the UK industry who wishes to remain anonymous.