Day Care Business Plan

XXXX LTD

BUSINESS PLAN

MISSION AND VISION VALUES CARING The wellbeing of our residents is at the heart of everything we do; treating people with dignity and respect, embracing a caring and supporting culture across our staff teams.

MISSION To provide services with a focus on compassion, independence and choices, meeting individual needs of the residents within a homely environment, whilst developing an inclusive learning culture across the workforce.

EXCELLENCE

VISION Develop and deliver high quality Care Services, enabling older people to live fulfilled lives and create a rewarding workplace for the staff.

We strive in providing high quality services by listening to our residents and develop our workforce to adopt a truly person-centred approach to the highest professional standard.

COPRODUCTION We commit to working in partnership with residents, their families, staff teams and practitioners to coproduce services, by involving them in the planning of activities, decision making, delivery of services and evaluation to ensure continuous learning.

TAKING RESPONSIBILITY We are committed to meet the needs of our residents and behave responsibly in the delivery of our services.

2

TABLE OF CONTENTS

CONTENTS

01

EXECUTIVE SUMMARY

4-5

02

BUSINESS MODEL

6–23

03

MARKET RESEARCH

24–28

04

COMPETITOR ANALYSIS

29-30

05

SWOT ANALYSIS

31-31

06

MARKETING STRATEGY

32–37

07

MANAGEMENT SUMMARY

38–40

08

SOURCES AND USAGE

41–42

09

FINANCIAL PLAN

43–51 3

EXECUTIVE SUMMARY An overview of the care home to be established and the milestones to be achieved

4

EXECUTIVE SUMMARY COMPANY PROFILE: XXXX Ltd was incorporated in December 2018 to provide quality care at competitive rates. XXXX’s vision is to increase its current portfolio by developing or procuring future-proofed care homes. The shareholders are committed to reinvest the profits into the business to increase the portfolio until EBITDA of £1.2 million is achieved.

BUSINESS MODEL: XXXX: It is a 60-bed care home in Derbyshire. The home was not performing well under the previous management for many years and was advertised for below market price. The management team at XXXX capitalised on the opportunity and completed the purchase for £1.2 million in April 2020. After implementing a successful change management programme, the home now has a good reputation and is trading at 95% capacity.

£281K

NET PRESENT VALUE

16%

INTERNAL RATE OF RETURN

17%

REVENUE CAGR

22%

NET PROFIT CAGR

XXXX Hotel: It is a 44-bed 4-star hotel in the edge of Dartmoor within established grounds of 8 acres in Devon. The founders have secured planning for Change of Use to Care home and also to extend the building.

The finished care home will accomplish three self-contained units with fully refurbished 52-bed en-suite with walk in shower rooms, 6 communal lounges, cinema room and a saloon. The average room size will be 242 m with 92 m of communal space per resident.

This is a low-cost opportunity to develop a modern care home with latest technologies with high potential for ROI. The anticipated T/O in year 2 will be in the region of £2.5 million.

MARKET POTENTIAL FOR XXXX: The Southwest has lost the most beds, with many outdated and rurally located homes closing. Devon has been named as having the fifth sharpest decline in the number of care beds outside of London. On average residential care homes in Southwest cost £700 per week, with nursing homes costing on average £1,015 per week. The home is in an affluent area well suited to meet the self-funders’ expectations.

INVESTMENT REQUIRED: The founders will satisfy the funding requirements from a bank loan. This document outlines the strategies that XXXX Ltd will use to maximise its profits and lower its operating expenses. The total amount of loan to be raised will be £3.2 million. The usage of funds has been outlined as follows: ▪ Refinance the current facility against the freehold of XXXX & XXXX: £1.2 million ▪ Expected cost of development of XXXX: £2 million

FINANCIAL SUMMARY

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Revenue Gross Profit Net Profit Cash Balance

£1,641,467 £615,101 £205,284 £29,226

£2,504,307 £1,078,426 £569,648 £410,259

£2,579,436 £1,110,778 £590,195 £799,025

£2,717,111 £1,200,180 £668,229 £1,252,738

£2,858,316 £1,280,262 £743,928 £1,768,776

5

BUSINESS STRUCTURE Establish a chain of future-proof care homes providing quality care at a competitive pricing

6

BUSINESS STRUCTURE – THE ENTITY COMPANY STRUCTURE: XXXX Ltd was incorporated on the 31st December 2018, aimed at providing quality care. XXXX Ltd is the legal entity which owns XXXX and XXXX Hotel (conversion to care home). XXXX Ltd comprises of 8 shareholders whereby 2 of the shareholders play an active role in the day-to-day activities and 2 others manage the back-office functions. All others are silent partners.

Company Name: XXXX Ltd

SHAREHOLDERS’ COMMITMENT TO BUSINESS: All shareholders have agreed to waive all dividends until the group reaches an EBITDA of £1.2 million or wait four years from the date the company commenced trading. In the interim, capital will be reinvested to achieve the targets.

Only the two directors who are actively involved in the business's day-to-day running will be compensated for their time. As such, there should be sufficient funds available to service debt.

Existing Care Home: XXX

XXXX MANAGEMENT STRUCTURE:

Industry: Care home industry

▪ XXXX Ltd’s senior operational management team compromises of a director of services and the business development director, with both directors working full-time.

▪ The company has commissioned XXXX to work on-site on XXXX’ Services for up to 30 hours a week to enhance service outcomes (compliance & occupancy).

▪ The operational management team at the XXXX consists of a permanent home manager and deputy manager who are both contracted to work full- time on the site.

TECHNOLOGY: The company has implemented renowned third-party technology products successfully in XXXX and will deploy the same technology to all new acquisitions.

▪ To record care provided to the residents.

▪ Rota management with facial recognition capabilities.

Incorporation Date: December 2018 Registration Number: XXX

Company Location: XXX Hotel Purchased: XXXX Hotel (to be converted to care home) Name of Reconstructed Care Home: XXX

Address of XXXX Home: XXX Geographical Focus: Devon and neighbouring counties within a 10 – 15-mile radius

▪ Partnered with Peninsula to manage employee relations and Health & Safety.

▪ Subscribed to various third-parties and have access to the latest policies and procedures.

▪ Inhouse built system to record resident fees and track payment details.

7

BUSINESS STRUCTURE – THE ENTITY XXXX (EXISTING CARE HOME): XXXX was identified as a turnaround opportunity and was acquired in April 2020. A change management programme was successfully implemented resulting in increased occupancy, quality of care and conformance to compliance.

XXXX HOTEL (CONVERSION TO CARE HOME): XXXX was identified as an opportunity to expand XXXX’s footprint by converting it to a nursing home. The founders have successfully obtained planning permission for change of use and extension.

The XXXX is situated in an 8-acre plot which is 200 metre east of the main A386 Plymouth to Tavistock Road and approximately two miles south of the village of Yelverton. The site lies approximately seven miles north of Plymouth city centre. It is surrounded by the Moors and is near Dartmoor National Park.

The home has been divided into 3 self-contained units containing 52 bedrooms with laundry and kitchen servicing centrally. The care home accommodates 48 car parking spaces for staff and visitors. 46 rooms have a garden view featuring a 20m * 20m pond. The existing building is situated within 4 acres of the 8-acre plot. The detailed overview of each division is outlined as follows: ▪ The Dementia Wing – It contains 15 bedrooms with en-suite walk-in showers. The wing includes 2 communal spaces and a conservatory supported by 2 nursing stations. The dementia wing has an entrance with a lobby and a private garden. Residents also have access to a cinema room and a saloon located in the private wing. The average room size is 282 metre.

▪ Nursing Wing – It contains 20 bedrooms with en-suite walk in showers. The division has large corridors with a communal space and is supported by 2 nursing stations. Average room size is 222 metre. Residents have access to the communal space in the private wing.

Management: XXXXX Target Customers: Old age people, people with dementia, people who need residential care, nursing care, & retirement care, self-funders residents, statefunded residents, and residents partly funded by state Competitors: Torr Home, Consort House Nursing Home, Hartley Park Care Home, and Devonshire House and Lodge Care Home Overall Objectives: To increase the current portfolio of care homes by developing or procuring futureproofed care homes.

Customer Benefits: Quality care home services with modern care facilities and multiple amenities at a competitive cost

▪ Private Wing – It contains 17 bedrooms with en-suite walk in showers. 7 bedrooms have access to a private garden and 8 bedrooms have private balconies. Average room size is 232 metre. Residents have access to a large dining and sitting lounge, a morning room, cinema room, a saloon and a pub supported by 2 nursing stations. They also have access to a secured decking area overlooking the pond.

8

BUSINESS STRUCTURE – GOALS, MISSION & OBJECTIVE MISSION: Procure business using investment from shareholders & reinvest the returns back into the business to expand. No dividends will be issued for the first four years or until an agreed total net profit or percentage is achieved.

OBJECTIVE: Intention is to own group of care homes supported by a fully-funded centralised team. We identify opportunities where the specification of the building will stand the test of time.

GOALS

Procure other strands of

Reinvest 100% of the profits

Dividends pay out to be

Strategy to be reviewed

businesses in the

until an agreed target is

finalised and agreed by

four years after the

healthcare sector using the

reached or for 4 years from

shareholders. Dividend

purchase of the 1st home.

proceeds from first home.

the purchase of the first

payments to be issued

home.

either at the end of 4-year period or once an agreed annual net profit or percentage is reached.

9

BUSINESS STRUCTURE – XXXX HOME LESS BEDS

GROWING DEMAND

Reduction of nursing beds in the target location

Growing demand for challenging behaviour, complex nursing and bariatric care

PRESENT POSITION Care homes in the target location are outdated

LOW-COST OPPORTUNITY Low-cost opportunity to create a 52-bed nursing home (cost to build a care home is £125k per bed as at 2020)

LIMITED AMENITIES REASONING BEHIND THE DECISION TO ACQUIRE XXXX HOTEL

Not all care homes have walk-in shower rooms

SUPPORT BY LOCAL AUTHORITY Local authority have welcomed the XXXX’s proposals

10

BUSINESS STRUCTURE – XXXX HOME FOLLOW THE PARTNERSHIP VISION The Market Position Statement January 2020: “Vibrant Markets for Happy and Healthy Lives” is jointly prepared by Devon County Council, the Devon Clinical Commissioning Group and the Devon Partnership NHS Trust. The Statement is to deliver the Promoting Independence Strategy and the emerging Devon 10 Year Plan for Health and Social Care, which derives from the NHS Long Term Plan (https://www.longtermplan.nhs.uk/) it engages providers as part of whole system redesign and will support action by the emerging Primary Care Networks and other place-based systems. In October 2019, the Partnership started its market development within the care home sector, this will be delivered over the next 10 years and help ensure sufficiency of provision.

XXXX Ltd will fully support and embed the redesign of systems and services to deliver the Partnership’s vision. The company will do this by implementing the ‘Integrated Care Model’ to deliver a joined-up approach to dementia care services in Devon including providing easy access to urgent & crisis care and embedding end-of-life care at all levels.

FULFILING THE STAFFING REQUIREMENTS The outbreak of COVID-19 has resulted in unemployment across various industries. However, the care sector now has a much more positive profile and as a result of rising unemployment, there is potential to attract and retain more staff. A recent campaign to recruit staff by the Partnership has resulted in 150 recruits in the company. The staffing requirement for the new care home is estimated at 31 people with a combination of full and part-time staff. The founders are confident that they can recruit and retain the required staff and this way it will contribute to the growing employment in the area.

The company will also employ a team of experienced contractors to carry out the care home construction work. Alongside the professional construction team, the director of business development, who is a shareholder would oversee and will be on-site throughout the development phase. The Director of operations who is also the nominated individual and a shareholder will be on-site to oversee day-to-day operations and co-produce services with local authorities which can develop into specialism services. The company also has an in-house care consultant who specialises in technical and compliance aspects of operating the home which includes regular audits and CQC compliance. The company has a centralised support team who will manage the back-office functions for the existing care home as well as the new one. The team consists of people from different fields such as Finance, HR etc. The company has also developed and deployed technology solutions to manage resident fees, purchase orders, etc.

11

BUSINESS STRUCTURE – XXXX HOME

DEMAND

The founders have contacted with South Devon’s local authority to understand the local demand. They were very keen with the proposal and wanted to engage actively. The founders have a meeting planned with local authority on 10th of August 202X. South Devon local authority has also produced a market position summary (Early 202X), which sights the increasing demand for care beds. The founders also intend on instructing an independent agent to carry out the detailed analysis of the supply of beds, demand and the range of fees for local authority and private residents.

XXXX home will cater to 3 different types of clientele which include: ▪ Dementia – Average weekly fee is £750 ▪ Nursing – Average weekly fee is £1,000 ▪ Private Funders (Dementia/ Nursing) – Average weekly fee is £1,100

PRICING STRATEGY

OPERATIONAL PLAN

The company intends to fill the home fully with privately funded clients over a 2-years period. To increase the fill rate at the outset, the company is taking in residents funded by the local authority and private funders in year one.

Three months prior to the turnkey date, the director of services will move to Devon to take up residence for a minimum of a year.

The focus will be to repeat the service implementation activities undertaken at the XXXX such as CQC registration, recruitment, engagement with stakeholders like commissioners with a clear focus on marketing and provide leadership support to the workforce to develop a strong high-performance team. The objective is to ensure that the service is fully operational and established within the local community to develop a waiting list prior to the turnkey date. Anil Mittal will also be commissioned to provide onsite support for 25 hours a week on-site to implement a robust quality assurance process and to lead on clinical Governance. The business development director will establish contracts and pick up on areas such as snagging. XXXX are in dialogue with a local candidate for the home manager position to assist with the activities listed above. The aim is to appoint the home manager at least eight weeks prior to the turnkey date to assist with activities highlighted above and to work closely with the XXXX Manager, who will assist on the induction processes on topics such as clinical governance.

12

BUSINESS STRUCTURE – XXXX HOME STAFFING REQUIREMENTS A pool of more than 50 staff members is likely to be needed to successfully operate the new care home. The workforce supporting the care home will be made of people with a wide range of managerial, specialist and more general skills. There will be a combination of full-time, part-time, day and night shifts employees required to form the workforce. The shifts will be flexible and would range from 12-hour shifts to short 4 hour shifts to meet the needs of the people at the care home and employees. The workforce will comprise of: ▪ A registered manager, who will lead a team which will comprise: ✓ Nursing and care: registered nurses, team leaders, specialist workers, senior carers and carers.

✓ Facilities and support: Facilities Manager, housekeeping staff, Kitchen Manager and catering staff.

To meet the service and local community needs and given the high rates of unemployment in the area relative to the UK average, XXXX Service’s approach will be to focus on appointing workers from the local area. As part of their recruitment strategy, XXXX Ltd will adopt a localised approach to recruitment with a particular emphasis on offering employment to ex-employees of the Hotel. This approach has several particular advantages in that some hotel staff are already suitably experienced to ensure a smooth transition into posts such as catering, housekeeping and facilities. ExHotel employees will also have a good pre-existing understanding of the building, the area and the local community, and this is an added advantage for XXXX Ltd. It is also proposed that the applicants will participate in the Proud to Care Campaign which has been set up by Devon County Council to support the health and social care sector with recruitment and retention. As part of this, XXXX Ltd will launch the initial open recruitment program with them to target applicants in Plymouth and surrounding areas.

STAFF TRAINING: XXXX Ltd offers Accredited Care Certificate Training and a three-month comprehensive induction program for all staff members.

Staff are also encouraged to access Health and Social Care Courses from level 2 (Care) to level 5 (Management). XXXX Service’s approach to training and development will not only enable it to attract & appoint staff that are new to Health and Social Care but also upskill existing workers to take on senior positions.

13

BUSINESS STRUCTURE – XXXX HOME OUTLINE HOTEL CONVERSION PLAN OUTLINE: The proposed care home will include all the necessary amenities and facilities to allow the building to function as a nursing home, including en-suite bedrooms, lounge space, reception rooms, kitchen, dining rooms, staff office space, and nursing station (amongst others). A professional team/principal contractor would be deployed to carry out the construction work. The construction is expected to be completed within 6 months period. The detailed redesign plan of the conversion of the hotel to the care home is outlined as follows:

CONSTRUCTION PLAN DETAILS 7302 m of new space to be built to include 11 bedrooms, 3 nursing stations and communal space

Convert 41 en-suite bathrooms into walk in showers

Install 4 lifts

Install commercial (vinyl) flooring for the entire building

Widen bedroom doors and corridors

Install fire alarm, nurse call, CCTV and telecommunication systems

Upgrade the plant rooms

Refurbish the car park to service 48 parking spaces

Fitting out the rooms to high standards

The landscaped garden of the property would be redeveloped to include 20m * 20m pond, matured trees, sitting areas and walkways for the use and enjoyment of the residents and their visitors.

14

BUSINESS STRUCTURE – OPERATIONAL STRATEGIES PROFESSIONAL TEAM Hire a professional team to carry out the refurbishment work. The professional team will consist of architects, independent planner, structural engineers, quality surveyors, principal designer and principal contractors.

STAFFING The company will also recruit nurses from abroad to mitigate the staffing challenges in the rural location.

CENTRALISED DECISIONS All key decisions will be managed by a committee consisting of an experienced project manager, care consultant and Yogi.

ENGAGEMENT WITH LOCAL AUTHORITIES The nominated individual and the care consultant will engage with the local authorities to identify needs and develop bespoke services.

EFFECTIVE MANAGEMENT The company will adopt a strict methodology to procure the entire project so that quality and costs are managed effectively.

15

BUSINESS STRUCTURE – MILESTONES

HOTEL PURCHASED Bought a closed hotel in October 2020

HOTEL PURCHASED

PERMISSION GRANTED Planning permission granted in April 2021

APPLIED FOR PERMISSION

APPLIED FOR PERMISSION Applied for planning permission in November 2020 to extend the hotel and change of use from a hotel to a nursing home

PERMISSION GRANTED

APPLY FOR REGISTRATION Apply for a CQC registration and recruit staff

BUILDING CONVERSION

BUILDING CONVERSION Appoint a professional team and a contractor to carry out the building works

APPLY FOR REGISTRATION

MARKETING

MARKETING Extensive marketing leading to turnkey

16

BUSINESS STRUCTURE – CRITICAL SUCCESS FACTORS BETTER AMENITIES The room sizes at XXXX will be 242 m, significantly bigger than the market average. 92 m of communal space excluding corridors per resident is also higher than the industry average.

There will also be private gardens/ balcony access for 28% of the rooms.

LOW-COST OPPORTUNITY This is a low-cost opportunity to develop a modern care home with latest technologies with high potential for ROI.

ESTABLISHED BUSINESS The founders already have the experience of running a successful care home, as they are already managing and earning profits from XXXX Ltd (XXXX) operating in Derbyshire.

CO-PRODUCTION (WORKING IN PARTNERSHIP) The company will work in partnership with local authorities, hospitals, and social workers across the region to generate business. The company will also work closely in partnership with local provisions such as Extra Care Housing and Supported Living.

EXPERIENCED TEAM Some of the team members from management, operational and administration team at XXXX will support the development and operations at the new center at Devon initially and assist the new joiners to manage the business effectively.

PERSON-CENTERED CARE The professionals will consistently provide personalised care service to the residents, always be available and responsive to their requirements, and maintain the company’s integrity by staying true to the morals and values of XXXX Ltd.

LOCATION The new care home will be located at Devon. It is a perfect location to start a care home business, as the county is home to growing number of old age people and people affected with dementia. The county also lacks the care facilities to accommodate the current demand for care.

EXTENSIVE MARKETING STRATEGY The company will use a mix of marketing strategies to achieve efficiency and better results. The company will leverage social media, other digital marketing strategies and local media as marketing tools to target its potential customer base.

17

BUSINESS STRUCTURE – GOALS SHORT-TERM ▪ To establish relations with social workers, hospitals,

MEDIUM-TERM ▪ To review and measure the company’s growth and

LONG-TERM ▪ To create a chain of care homes supported by a fully

and local authorities in Devon and its surrounding

performance periodically, aligning business strategies

funded centralised team across the United Kingdom

counties.

with existing market trends.

and acquire a larger market share.

▪ To complete the transformation and extension of wellknown hotel into a care home as per the guidelines of CQC. ▪ To obtain all legal licenses required to start a care home in Devon.

▪ To engage with local communities by providing daycare solutions for the elderly and organise events.

▪ To hire well qualified and trained staff to provide quality care services.

▪ To reach 95% occupancy within 12 months.

▪ To explore new locations to expand the business reach.

▪ To achieve company growth at a significantly faster pace in future.

▪ To investigate the problems faced by residents & concerns of their relatives and make strategies to resolve the same.

▪ To build organisational capacity and expertise to support the expansion and ensure the highest-quality delivery in all areas of work.

▪ To ensure well being of staff by offering them several

▪ To adopt a resident-centric approach, ensuring that

incentives and rewards to ensure high stability.

each resident is given proper care and support.

▪ Reinvest 100% of the profits until an agreed target is

▪ To help resident live a life where they can naturally

reached or for 4 years from the purchase of the first

express themselves.

▪ Co-produce services with the local authority.

▪ To promote the company’s culture, good values, and resident-focused business philosophy.

▪ Develop bespoke operating practices across the

▪ To maintain a solid growth rate per year during the projected period.

▪ To provide care in more specialised fields.

▪ To engage with local authority planners to build a 70bed nursing home in the adjacent 4-acre plot in Devon.

▪ To maintain 95% occupancy rates with 80% selffunders.

▪ Distribute dividends to the shareholders once the target EBITDA has been achieved.

▪ Develop technology solutions to assist in running multiple care homes.

▪ Develop a portfolio of future-proof homes to achieve

the target EBITDA.

home.

▪ Procure other strands of businesses in the healthcare sector using the proceeds from the first home.

▪ Develop a centralised support team to manage a group of care homes.

group.

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BUSINESS STRUCTURE – XXXX HOME KEY PARTNERS ▪ ▪ ▪ ▪ ▪ ▪

Bank Social workers Local authority Hospitals Construction team Care home manager

KEY ACTIVITIES

VALUE PROPOSITION

▪ Transform the hotel into care home keeping in mind the CQC guidelines & above that convenience of residents.

▪ Maintain & operate care home effectively and profitably.

▪ Establish relations with social workers and local authorities to gain leads.

▪ Assist government authorities while inspection of home.

▪ Source best quality food ingredients.

▪ Close monitoring of care plan of residents to deliver quality care.

▪ Schedule regular activities for residents.

▪ Ensure health, safety, and hygiene at all levels in the care home.

▪ Obtain all required legal license for running a care home.

▪ Ensure active involvement of residents in home’ tasks and other activities.

▪ Obtain property and employee insurance.

▪ Provide best quality care to the residents at competitive prices.

▪ Provide long-term benefits to the employees.

▪ Provide regular training, motivation, and guidance to the employees to serve the residents better.

▪ Meet and exceed residents’ and their relatives’ expectations.

▪ Encourage ethical behavior within the company.

▪ Promote transparency and integrity across all levels.

▪ Serve hygienic, delicious, balanced and best quality food to the residents.

▪ A separate (customised) & detailed care plan for each resident based on individual requirements.

▪ Resident-focused approach.

KEY RESOURCES ▪ ▪ ▪ ▪ ▪

Experienced management team Well-educated, trained and dedicated staff Multiple business units Well designed and spacious home property Funding

CUSTOMER RELATIONSHIPS

CUSTOMER SEGMENTS

Residents’ experience Word-of-mouth Reputation Online marketing Community involvement ▪ Reliability and convenience ▪ Residents and their relatives' reviews ▪ Personal assistance

Geography

▪ ▪ ▪ ▪ ▪

CHANNELS ▪ Local media ▪ Social media (Facebook, Twitter, Instagram, YouTube, etc.)

▪ Frequent meetings with social workers and local authority’ officials

COST STRUCTURE

REVENUE STREAMS

▪ Employee cost ▪ Utilities cost ▪ Administrative cost

▪ Revenue from dementia care ▪ Revenue from nursing care ▪ Revenue from private residents (nursing/dementia)

▪ Devon and neighbouring counties initially within a 10-to15-mile radius ▪ England ▪ The United Kingdom

Demographics ▪ Old age people ▪ People with dementia ▪ People who need residential care ▪ People who need nursing care ▪ People who need retirement care ▪ Self-funded residents ▪ State-funded residents ▪ Partly funded by state residents

19

BUSINESS STRUCTURE – RISK AND MITIGATION RISK

MITIGATION STRATEGY

QUALITY OF CARE

▪ ▪ ▪ ▪ ▪

EMPLOYEE RISK

▪ ▪ ▪ ▪ ▪

REPUTATIONAL RISKS

▪ Inform residents, their relatives, and employees about care home incidents and how the company responds to them.

▪ Have the core values rooted in the business model.

▪ Treat employees fairly, monitor employee satisfaction, and debrief outgoing staff to find out what could be done better to improve the company’s reputation.

▪ Establish a positive culture regarding compliance with laws, regulations, and internal policies.

▪ Strong corporate values that are supported by appropriate performance incentives.

COMPETITION RISKS

▪ Provide better care at competitive pricing.

▪ Find and resolve the residents and their relatives’ pain points.

▪ Devise a competition-based pricing strategy.

FINANCIAL RISKS

▪ ▪ ▪ ▪ ▪ ▪ ▪

Formulate detailed care plan of each resident depending upon past medical records and latest health condition.

Regular monitoring of care plans.

Take feedback at regular intervals from the residents as well as their relatives and resolve their issues, if any.

Maintain valid, reliable, and timely data about the care home facility residents and the care they receive.

Follow proper hygiene and care norms as prescribed by the authorities from time to time, while maintaining the amenities at the care home in proper condition.

▪ Ensure active participation by the residents in programs and activities organised by the care home.

▪ To create a homely atmosphere in the care home allowing residents to live their life joyfully.

Pair verification documents with prior work history, credentials, licenses, education, references and identity forms before hiring any employee.

Conduct drug screenings and analyse abuse registries, criminal records, credit background checks and DMV/MVR background checks.

Plan regular training and orientation activities to ensure employee and resident safety.

Improve wages, benefits, and working conditions to attract and retain “better,” more qualified staff.

Involve employees in making operating decisions so that they feel encouraged to work at their maximum potential.

Not to distribute dividend to the shareholders for the first 4 years to arrange funds for expansion strategy.

Monitor financial ratios and compare the same with benchmarks at reasonable intervals.

Control key expenses by considering alternative options.

Conduct a trend analysis to assess change in profit over different years.

Communicate and renegotiate agreements with food and medicine suppliers.

Develop a strategic operational plan to control the expenditure by following pre-set procedures.

Make optimum utilisation of available resources to gain maximum profitability.

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BUSINESS STRUCTURE – ORGANISATIONAL STRUCTURE

BOARD OF DIRECTORS

Nominated Individual

Kitchen Manager

Catering Staff

Registered Nurse

Carer (Day and Night)

Registered Manager

Senior Carer (Day and Night)

Carer (Day and Night)

Deputy Maintenance

Activity CoOrdinator

21

BUSINESS STRUCTURE – STAFFING PLAN NUMBER OF EMPLOYEES

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Kitchen Manager

1

1

1

1

1

Catering Staff

3

3

3

3

3

Registered Manager

1

1

1

1

1

Deputy Manager

1

1

1

1

1

Activities Co-ordinator

2

2

2

2

2

Maintenance Staff

1

1

1

1

1

Day Nurses

1

1

1

1

1

Night Nurses

1

1

1

1

1

Senior Day

2

2

2

2

2

Senior Night

2

2

2

2

2

Care Day

6

6

6

6

6

Care Night

3

3

3

3

3

Domestic

3

3

3

3

3

Total Employees

27

27

27

27

27 22

BUSINESS STRUCTURE – STAFFING PLAN HOURLY RATE OF PAY

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Kitchen Manager

£11

£11

£12

£12

£12

Catering Staff

£9

£9

£10

£10

£10

Registered Manager

£25

£25

£26

£27

£28

Deputy Manager

£13

£13

£14

£14

£15

Activities Co-ordinator

£11

£11

£12

£12

£12

Maintenance Staff

£12

£12

£13

£13

£14

Day Nurses

£18

£19

£19

£20

£20

Night Nurses

£18

£19

£19

£20

£20

Senior Day

£10

£10

£11

£11

£11

Senior Night

£10

£10

£11

£11

£11

Care Day

£9

£9

£10

£10

£10

Care Night

£9

£9

£10

£10

£10

Domestic

£9

£9

£10

£10

£10

23

MARKET RESEARCH Analysis of the care home industry in the United Kingdom including facts and statistics regarding number of care homes, ageing population, government

spending, demand, industry concentration, and regional analysis including specifying the demographics of Devon

24

MARKET RESEARCH– LOCATION ANALYSIS DEMENTIA IN DEVON: The number of people aged 65 and over with dementia is projected to increase by 39.7% from 14,520 in 2019 to 20,280 in 2030 and the total dementia care cost is forecast to increase by 71% from £585 million in 2019 to £995 million in 2030. The prevalence rate of dementia among older people is forecast to increase by 13.6% from 7.15% in 2019 to 8.12% in 2030.

DEMENTIA COST IN DEVON (IN MILLION)

NUMBER OF OLDER PEOPLE AGED 65 AND OVER WITH DEMENTIA IN DEVON

£995 £585

2019

£615

2020

£780 14,520

2025

2030

2019

14,910

2020

20,280

17,390

2025

2030

COUNCIL FUNDING: As of 01/01/2021, there were 2,598 people supported by Devon County Council (DCC) in care homes within the DCC area. The DCC has proposed to increase the banded rates for standard care as well as nursing care from £553 per resident per week in 2020-21 to £594 in 2021-22 and £771 to £805, respectively. The breakdown of numbers of people by fee model and gender is as follows:

7.15%

7.22%

2019

2020

7.71% 2025

South Lakeland

8.12%

02

East Lindsey

2030

03

North Norfolk

04

Malvern Hills

05

Tendring

06

South Hams

07

East Devon

08

Dorset

09

New Forest

10

Arun

11

Rother

Population Median Age UK average

40.3

East Devon

51.2

West Devon

51.3

Mid Devon

46.7

North Devon

48.0

212

543

Banded Model

932 Male

Personalised Model

1,843

Female

Non-branded Rates

1,666 SOURCES

https://devoncarehomes.org/resources/Documents/WhatsApp%20docs/DRAFT%20Care%20Home%20Fees%20Annual%20Increase%202021-22%20Impact%20Assessment.pdf https://www.exmouthjournal.co.uk/news/rising-age-of-east-devon-residents-predicted-to-grow-5800236 http://southdevonandtorbay.info/media/1241/population_torbay_2018.pdf

Most Ageing Areas

01

Life Expectancy at birth by years

PEOPLE BY GENDER

NUMBER OF PEOPLE BY FEE MODEL

PREVALENCE RATE OF DEMENTIA IN DEVON PEOPLE 65+

East Devon

81.2

85.4

West Devon

80.6

84.0

Mid Devon

81.1

84.6

North Devon

80.6

83.6

25

MARKET RESEARCH– LOCATION ANALYSIS DEVON POPULATION OVERVIEW: The data released by the Office for National Statistics (ONS) reveals that older people typically live near National Parks, the coast and Areas of Outstanding Natural Beauty - with the most ageing areas across four indicators including Dorset, East Devon and South Lakeland in Cumbria. This trend supports the view that older people move away from cities to rural areas and the coast.

MEDIAN AGE 53.2

54

% AGED 65 AND OVER 55

54.5 47.9

46.7

47.2

49.2

50.1

52.6

53.4

54.2

2025

2030

2035

EAST DEVON

MID DEVON

NORTH DEVON

30.0%

48.6

35.1%

West Devon

% AGED 85 AND OVER

35.9% 4.7%

5.9%

6.1%

4.4%

4.6%

5.4%

5.6%

26.2%

27.9%

28.6%

27.1%

29.4%

31.5%

32.5%

54.8

31.7%

33.8%

35.9%

37.0%

4.8%

5.4%

6.6%

6.9%

2040

2025

2030

2035

2040

2025

2030

2035

2040

EAST DEVON

MID DEVON

NORTH DEVON

EAST DEVON

MID DEVON

NORTH DEVON

24.4%

50.9

32.9%

51.6

WEST DEVON

3.9%

3.6%

3.2%

4.4%

3.7%

WEST DEVON

POPULATION OF DEVON BY REGION IN 2019 AND 2033 131,405

141,700

134,163 82,311 90,600

East Devon

Exeter

Mid Devon

97,145 103,400

North Devon

Population of Devon in 2019 SOURCES

http://southdevonandtorbay.info/media/1241/population_torbay_2018.pdf https://www.dailymail.co.uk/news/article-8540851/Most-ageing-youthful-places-UK-revealed.html https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/ageing/articles/subnationalageingtool/2020-07-20 https://www.google.com/url?q=https://www.devon.gov.uk/factsandfigures/the-people/population-estimates/&sa=D&source=hangouts&ust=1620110430230000&usg=AFQjCNEfUGY7m-sosEMgh97YsDbrQPLKiw https://www.google.com/url?q=https://www.devon.gov.uk/planning/planning-policies/demographics&sa=D&source=hangouts&ust=1620110430230000&usg=AFQjCNH5Us5nIGCPh5bOFDLwZgIjvcLA1A

18,934

Teignbridge

35,687

South Hams

24,584

North Devon

24,540

Mid Devon

19,383

Exeter

21,049

146,400

87,004 92,400

South Hams

Torridge

15,609

WEST DEVON

REGIONAL POPULATION: The breakdown of the overall population in Devon by region and age has been provided in the graphs below:

146,284 151,300

POPULATION OF PEOPLE AGED 65+ IN DEVON

68,267 74,300

Teignbridge

Torridge

55,796 58,000

West Devon

East Devon

44,415

Population of Devon in 2033 26

MARKET RESEARCH– LOCATION ANALYSIS PLYMOUTH OVERVIEW: Plymouth is one of the largest cities on the south coast and the 15th largest city in England. It is located in West Devon. Plymouth is branded as ‘Britain’s Ocean City’ with a legacy that goes back to the sailing of the Mayflower in 1620.

Plymouth is divided into 39 neighbourhoods which are grouped into 20 electoral wards.

POPULATION: Plymouth had a population of 264,000 in 2020 and this is estimated to grow to around 274,300 by 2034, a projected increase of 4.3%. There will be a major shift in the population structure of Plymouth over the next 20 years as the proportion of the population aged 65 and over increases and the population aged 0-4 years decreases. The population of 65+ is expected to account for 22.7% of the overall population by 2034 growing at a rate of 3.7% between 2016 to 2034. An ageing population suggests an increasing need for care and support services and also an increasing burden placed on the working-age population.

PEOPLE WITH DEMENTIA: In 2019, 3,510 people over the age of 65 were estimated to be living with dementia in Plymouth. By 2030, it is projected that this number will rise to 4,770 people.

POPULAITON OF PLYMOUTH 261,386

262,355

263,070

263,100

262,100

264,000

2014

2015

2016

2017

2018

2019

2020

NUMBER OF PEOPLE WITH DEMENTIA IN PLYMOUTH (65+)

TOTAL COST OF DEMENTIA (IN MILLION, 2015 PRICES)

4,770

£235

3,510

3,600

4,170

£140

£150

2034

14.4% Share of population aged above 80 years in Plymouth in 2019

22.6%

15,400

PREVALENCE RATE OF DEMENTIA IN OLD AGE (65 AND OVER) 8.03%

£185

Average age of people in Plymouth in 2019

Population aged 65 and above makes up 22.6% of the working age population in Plymouth as compared to average of 18.5% in England and Wales

274,300

260,512

42.8

Population of people aged 65+ is expected to reach 15,400 people by 2034

7.70% 7.19%

7.29%

79 AND 82.1 Life expectancy in Plymouth is 79 for males and 82.1 for females

2019 SOURCES

2020

2025

https://www.plymouth.gov.uk/sites/default/files/Plymouth%20Report_2019.pdf https://www.alzheimers.org.uk/sites/default/files/2019-11/cpec_report_november_2019.pdf https://www.plumplot.co.uk/Plymouth-population.html http://www.dataplymouth.co.uk/city-life

2030

2019

2020

2025

2030

2019

2020

2025

2030

27

MARKET RESEARCH– TARGET MARKET

PEOPLE WHO NEED RESIDENTIAL AND/OR NURSING CARE

PEOPLE WHO NEED RETIREMENT CARE SELF-FUNDED RESIDENTS

STATE-FUNDED RESIDENTS

PEOPLE WITH DEMENTIA

XXXX HOME OLD AGE PEOPLE

PARTLY FUNDED BY STATE RESIDENTS

28

COMPETITOR ANALYSIS A study of key players in the care home industry in the target market

29

MARKET RESEARCH– COMPETITIVE ADVANTAGE BETTER FACILITIES

The entire building is segregated in to three self-contained units to cater for different clientele. The room size at the XXXX Home will be significantly bigger than the market average, allowing residents to live comfortably. All the rooms will have an en-suite walk-in shower. The communal space (excluding corridors) measuring 9 m2 per resident is also higher than the industry average. There will be more than 2 acres of outdoor space with scenic views.

Moreover, 46 rooms will have scenic garden views. Private gardens/ balcony access will be provided to 28% of the rooms. There will be additional amenities including access to in-house cinema, pubs and saloon. The care home will also include fully refurbished rooms with dementia-friendly themes.

FOCUS ON QUALITY The prices fixed by the company for the services are comparable to the market rates without compromising on the quality of care and flexibility in service re-design. This is due to the flexible business cost structures, efficiency and productivity whilst delivering integrated services as compared to the other providers of care operating in the market. In addition to this, the founders will themselves oversee the operations at the care centre during the initial phase of business to ensure that the care home gets and maintain outstanding reviews from the CQC. APPROACH TO NEARBY FACILITIES The care home will have easy access to public transport allowing the relatives and friends of residents to commute easily. The place is just 7 miles from Plymouth town centre, which contains one of the largest NHS hospitals, thereby providing easy access to primary healthcare to the residents in case of any emergency. Having a centralised location will allow the care home to attract people from nearby counties.

PROVEN TRACK OF MANAGING A SUCCESSFUL CARE HOME XXXX Ltd is already managing and operating a successful care home named XXXX in Derbyshire. Being already operational and providing quality care services, XXXX Ltd has already created a presence among people for the level of care offered by its facility. This will help the company in onboarding initial base of customers at its new centre in Devon. The management and employees team at the company are also experienced in the care home industry, which will assist it in managing the operations at the new centre effectively.

EXPERIENCED STAFF A care home business is not only as good as its services but the quality of its staff as well. The company’s goal is to hire hand-selected team members that have the same values as the founder. The founder will also conduct periodic staff meetings intended to review data, increase residents & their relatives’ satisfaction, and keep the lines of communication between staff and management open.

30

MARKET RESEARCH– SWOT ANALYSIS STRENGTHS ▪ Experience of operating a successful care home.

▪ Access to fast internet connection, telephone, and smart tv with free view channels.

▪ Easy access to public transport (talent attraction) and just 7 miles from Plymouth town centre which contains one of the largest NHS hospitals.

▪ Well qualified and trained staff to provide best quality and technology-enabled care to residents.

▪ Well known hotel with history going back to World War 2.

▪ Attractive fee structure.

▪ Care staff pay structure will be above local average.

▪ Low carbon footprint due to minimal use of paper-based documentation.

WEAKNESSES ▪ First engagement with Devon council.

▪ New venture, lack of awareness about XXXX Home in the local community.

▪ Existing care home (XXXX) is 5 hours away from new care home (XXXX Home).

▪ Pandemic could cause delays to the programme.

OPPORTUNITIES

S The care home industry is growing and evolving, and many new opportunities and threats come with that.

W

SWOT The industry can fluctuate depending on the national and local economies, although it remains somewhat consistent because of growing old age population and people with dementia.

T

O

▪ Growing old age population and people with dementia in the targeted location.

▪ Limited supply of care home beds in comparison to growing demand.

▪ De-registration of care homes is outpacing new registration, thereby creating demand for new care homes.

▪ Increasing share of self-funders in comparison to state funded residents, as self funder spend 43% more amounting to £245 a week.

▪ Opportunity to expand to the nearby counties by acquiring or constructing new care homes.

▪ Increasing life expectancy in the UK will result in rise in demand for modern and fit-forpurpose care home developments.

▪ Rising awareness of home care services.

▪ With increase in focus on healthcare, care homes have opportunity to expand geographically.

THREATS ▪ Changes in regulations may impact business performance in the future.

▪ Already established competitors.

▪ An economic downturn can eliminate a large chunk of the market, as seniors and their families may re-evaluate the feasibility of lower-cost solutions.

31

MARKETING STRATEGY A list of marketing strategies to be followed by the company to attract the target customers and grow the

business

32

MARKET ANALYSIS – MARKETING STRATEGIES INFORMATIVE WEBSITE

Even though some people might assume that seniors are not internet savvy, their kids and grandkids are certainly so. The first place people search for information is online, so the first marketing tool is to have a great website. The company will create a user-friendly and informative website listing basic information regarding the types of care services offered, number of beds, amenities at the facility, 360-degree view of the care home, and pricing charged for different care services. The company will engage prospective clients through its website and give them more reasons to choose XXXX Home for their loved ones. It will share the images and videos of residents living in its care home, participating in activities and programs, and celebrating the special days with care home staff & other residents to attract people. It will also regularly update its website content and features to keep itself at the top of search engine results.

LOCAL BUSINESS DIRECTORIES

The company will list its care home location on various online and offline directories around the targeted region to generate quality leads. Some of the offline sources include the local yellow pages, directories maintained in hospitals or local town council offices. Many online sources and apps also list all convenience services together on one platform. The company will also make sure that it lists the care home on all these directories whether online or offline.

SEO

Search engine optimisation (SEO) involves optimising the website pages to rank higher in search results for specific keywords and phrases. Users finding care home are the most likely to use search engines. The company will develop a well-crafted SEO strategy to drive more traffic to its website, as it will push the platform to the top of search engine rankings. It will develop appropriate keywords, including ‘best care home near me’, ‘dementia care facilities’, ‘residential care facilities’, ‘nursing care facilities’, etc., to rank its platform higher in search engine results, enabling it to drive more traffic.

E-MAIL MARKETING

E-mail marketing has proven to be an effective tool among other successful marketing strategies for directly communicating with the targeted customers. As of 2019, more than half of the world’s population used e-mail.

The company will build an e-mail marketing list and create regular promotional messages targeted towards the senior citizens and their relatives across the targeted location. The messages will be about the services offered by the care home, adding to its facilities, or special discounts on certain occasions, etc. Receiving e-mails from the relatives of residents or residents regarding the problems being faced by them will also help the company to improve the working of the care home in the future, which will create a loyal customer base for the company.

33

MARKET ANALYSIS – MARKETING STRATEGIES SOCIAL MEDIA

Although most of the elderly population is not tech-savvy, their children are, and the internet is the first source of information for them, while searching for a care home. Considering the facts, XXXX Ltd will establish social media presence among its target customers through channels including Facebook, LinkedIn, YouTube, and Instagram. It will use its logo, vision, and mission on its social media profiles to project its home care business as a customercentric brand that is trusted by clients for quality care services.

The detailed strategy to market through social media channels has been outlined as follows:

Facebook: With its 2.6 billion active monthly users, Facebook has pretty much become the place for all types of businesses, including care home businesses. Seniors are the smallest, but fastest-growing Facebook age demographic. According to Pew, 62% of internet users aged 65 and older use Facebook, and 72% of 50- to 64year-olds use it. The company will engage with its prospective customers by posting the most recent activities at the care home. Additionally, the company will engage with the customers by liking images that have been uploaded by the residents or their relatives and write comments about them.

LinkedIn: Having a LinkedIn presence will help the company to connect with potential customers and create a brand presence. It will also help the company to build a great network with local authorities, hospitals, and social workers to get leads. The company will display complete information on its LinkedIn page and use its brand colours to highlight the relevant information to encourage more people to use the services of the care home.

Instagram: Most people spend a lot of time on Instagram nowadays. The company will frequently feature stories from the community or care home to spread the word about the care home. It will post once per day to the feed section (a mix of images and videos) using elderly care, best care home facilities, and care for people with dementia hashtags that will increase the page following. The company will reply to every customer comment and respond through direct message as quickly as possible.

YouTube: YouTube is the second most popular social media site in the UK. More than 35.6 million adults in the UK use the platform and 35% of the UK population are active users of YouTube. YouTube use is growing the fastest amongst Baby Boomers and Gen-X-ers. Considering the facts about YouTube usage, the company will create its YouTube channel and post videos related to facilities and amenities at the care home, people sharing their experience at the care homes, etc. to encourage the prospective customers to procure the services of the care home.

34

MARKET ANALYSIS – MARKETING STRATEGIES REVIEW PLATFORMS

ENGAGAMENT WITH LOCAL AUTHORITIES

CONTENT MARKETING

GOOGLE ADS

The majority of the clients always look for online reviews before making a final decision to get to know about the experience of people with the care facilities at different care homes. The company will encourage its residents and their relatives to provide reviews on third-party review websites, which will encourage other people to opt for its services. While positive reviews will work to attract more customers, a quick response to every negative review and immediate corrective action will not only covert the future leads but also make the XXXX Home stand apart from its competitors.

The company will engage with local authorities, hospitals and social workers across the targeted location to showcase the service provided and to co-produce specialist services depending on local authority needs. The elderly population is generally associated with their preferred hospital for their regular checkups and other healthcare issues. These hospitals can be a source of lead generation, as some patients may require regular care by qualified staff who will be referred to the care home by these hospitals.

Old age is like a second childhood and children of seniors are often unaware of the kind of care their parents need. To educate and attract them, the company will post relevant content educating people about how to take care of their parents, problems related to old age and their solution, etc. Posting high-quality and unique blogs will improve the search engine rankings and boost the care home’s online reputation, helping to ensure that more people see and visit the care home to enquire about the services.

The detailed strategy to target the customers through Google Ads is outlined as follows: ▪ Run responsive search ads and responsive display ads with various keyword groups to help maximise exposure of the care home location when being searched.

▪ Target the nearby regions to the physical facility (XXXX Home).

▪ Use keyword groups: location keywords, care home services-specific keywords (residential care, nursing care or dementia care), and generic keywords.

▪ Research competitors and their keywords.

▪ Include website link extensions, social media extensions and phone call extensions.

35

MARKET ANALYSIS – MARKETING STRATEGIES SOCIAL AND COMMUNITY EVENTS

Social and community events provide an opportunity to come face to face with prospective customers. By organising and attending these events, XXXX Ltd will spread words about the care home services and facilities & amenities around the location. The company will distribute brochures or flyers, play care home facilities videos, and try to capture as many business leads as possible through these social & community events. By meeting people who are attending these events in the community, the company will get to start the conversation with them. A lot of people don’t even know that home care is an option for their ageing loved ones, so the company will be able to educate them and highlight its business and what the care home could offer them, such as alleviating them from caregiver burnout, improving a seniors’ physical and mental wellbeing.

LOCAL ADVERTISING

Classic local advertising, like the door-to-door flyer distribution and display of posters around the community, is always a sure-shot way of generating leads for a care home business. The company will take help from experienced designers to get a creative flyer design for its marketing including various aspects such as introduction to the care home facilities & amenities, types of care services, contact details, etc. The company will also partner with local businesses like medical and convenience stores to display these posters or distribute the flyers.

VIDEO MARKETING

According to a Hubspot survey, over 90% of the users say that product or service videos are helpful in the decision-making process. This is especially important for the care home business, where the trust factor needs to be high. The company will create engaging videos where its existing residents or their relatives will speak of the care home facilities and services, someone will introduce the care home staff, or residents may be celebrating their special days or occasions, etc. These efforts will create a direct visual impact on the customers and push them to call the care home to get to know about the services.

EFFICIENT CUSTOMER ENGAGEMENT

The company will develop multiple channels through which relatives or children of old age people can connect to the company and it can answer the queries they may have about any services offered by the care home. This will support the care home reputation and confirm long-term success for the company. Also, targeting potential customers through different marketing channels will assist the company is targeting a wide range of clients.

36

MARKET ANALYSIS – MARKETING MIX PRICE Initially, the pricing structure followed by the company will be in the low/medium segment with the intention of increasing to premium segment over time, given that the service to be offered by XXXX Home will be above local competitors. The overall pricing strategy of the care home is provided as follows: ▪ Low Segment: Local authority funded (resident fee will be fully funded by local authority based on individual circumstances. The target area local authorities include Devon and neighbouring counties within a 10 – 15-mile radius) ▪ Medium Segment: Local Authority funded supplemented by Client Contributions (Local authority funds the fees which is supplemented by the client due to their financial status or to meet the care home’s fees) ▪ Premium Segment: Private Funded clients

PROMOTION XXXX Ltd will advertise through online marketing, social media, and local media sources to create awareness about its care home, showcase services offered, and facilities available at the same. The company will also engage with local authorities, hospitals, and social workers to gain valuable leads and spread a word about its care home and its facilities. In addition to this, the company will promote its care home services through multiple channels, including email, website, word-of-mouth, networking, etc.

PRODUCT XXXX Ltd is already running a care home named ‘XXXX’ in Derbyshire. The care home has been operating successfully and generating profits. To further create a chain of care homes to serve people with quality care services, the founders have decided to acquire a hotel named ‘XXXX’ and convert the same to a care home equipped with latest care facilities as per the norms of CQC. The aim of the founders is to offer convenience and best quality care to its residents. The care home will be named as ‘XXXX Home’. The care home will have three different units namely dementia wing, nursing wing, and private wing. Each unit will be independent and will have adequate resources to offer best quality care to the residents.

PLACE The company will convert the ‘XXXX Hotel’ into ‘XXXX home’, which will be situated in Yelverton, Devon. Having studied the demographics of this location, the place is considered as an ideal location to set-up a new care home.

There are several old age people and people with dementia in Devon, who require care home services and that can be targeted by the company. The increase in aging population, population with dementia in Devon as well as in the UK will further offer favourable business opportunities to the company. The resident-centric approach will help the company to provide best quality care and grow its business as well. After having established a brand name in the home market, the company will look to expand business operations in other locations across the UK.

37

MANAGEMENT SUMMARY

38

MANAGEMENT SUMMARY – FOUNDER DETAILS XXXXX FOUNDER AND BUSINESS DEVELOPMENT DIRECTOR INTRODUCTION: SKILLS:

WORK EXPERIENCE EDUCATION PROFESSIONAL CERTIFICATIONS

39

SOURCES AND USAGE The company will raise funds for development of the care home from a bank loan along with refinancing the already taken loan

40

SOURCES AND USAGE OF FUNDS SOURCES OF FUNDS

AMOUNT

Bank Loan

£3,200,000

USAGE OF FUNDS

£1,200,000 Total Funds

£3,200,000

USAGE OF FUNDS

AMOUNT £2,000,000

XXXX & XXXX Care Refinance

£1,200,000

Reconstruction of Care Home

£2,000,000 Moorland Garden & Pennine Care Refinance

Total Usage of Funds

£3,200,000

Reconstruction of Care Home

41

FINANCIAL PLAN These are our financial projections for the first five years of operations, depending upon market conditions.

42

FINANCIAL PLAN – INCOME STATEMENT PARTICULARS

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Revenue Revenue from Dementia Revenue from Nursing Revenue from Private Residents

£390,000 £641,333 £610,133

£558,285 £1,010,230 £935,792

£575,034 £1,040,537 £963,866

£591,809 £1,071,140 £1,054,161

£608,553 £1,101,768 £1,147,995

Total Revenue

£1,641,467

£2,504,307

£2,579,436

£2,717,111

£2,858,316

Direct Cost Employee Cost Cost of Sales

£908,366 £118,000

£1,241,831 £184,050

£1,279,086 £189,572

£1,317,459 £199,472

£1,356,983 £221,072

Total Direct Cost

£1,026,366

£1,425,881

£1,468,658

£1,516,931

£1,578,054

Gross Profit

£615,101

£1,078,426

£1,110,778

£1,200,180

£1,280,262

Gross Profit %

37%

43%

43%

44%

45%

Administrative Cost

£158,000

£184,050

£203,850

£210,000

£210,000

Total Operating Cost

£158,000

£184,050

£203,850

£210,000

£210,000

Earnings before Interest, Tax, Depreciation and Amortization

£457,101

£894,376

£906,928

£990,180

£1,070,262

28%

36%

35%

36%

37%

Operating Cost

Earnings before Interest, Tax, Depreciation and Amortization (%)

43

FINANCIAL PLAN – INCOME STATEMENT PARTICULARS

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Depreciation on Building

£96,000

£93,120

£90,326

£87,617

£84,988

Earnings before Interest and Tax

£361,101

£801,256

£816,602

£902,563

£985,274

Interest on Loan

£107,663

£97,987

£87,967

£77,590

£66,844

Earnings before Tax

£253,438

£703,269

£728,635

£824,974

£918,430

Tax Expense

£48,153

£133,621

£138,441

£156,745

£174,502

Profit after Tax

£205,284

£569,648

£590,195

£668,229

£743,928

Profit after Tax %

13%

23%

23%

25%

26%

44

FINANCIAL PLAN – CASH FLOW PARTICULARS

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Inflows Revenue

£1,641,467

£2,504,307

£2,579,436

£2,717,111

£2,858,316

Total Inflows

£1,641,467

£2,504,307

£2,579,436

£2,717,111

£2,858,316

Outflows Employee Cost Cost of Sales Administrative Cost Interest on Loan Tax Expense

£908,366 £118,000 £158,000 £107,663 £48,153

£1,241,831 £184,050 £184,050 £97,987 £133,621

£1,279,086 £189,572 £203,850 £87,967 £138,441

£1,317,459 £199,472 £210,000 £77,590 £156,745

£1,356,983 £221,072 £210,000 £66,844 £174,502

Total Outflows

£1,340,182

£1,841,539

£1,898,915

£1,961,265

£2,029,400

Net Cash Flow from Operating Activities

£301,284

£662,768

£680,521

£755,845

£828,916

XXXX & XXXX Care Refinance Reconstruction of Care Home

£1,200,000 £2,000,000

£0 £0

£0 £0

£0 £0

£0 £0

Net Cash Used in Investing Activities

£3,200,000

£0

£0

£0

£0

Cash Flow from Operating Activities

Cash Flow Used in Investing Activities

45

FINANCIAL PLAN – CASH FLOW PARTICULARS

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Bank Loan Repayment of Bank Loan

£3,200,000 £272,058

£0 £281,735

£0 £291,755

£0 £302,132

£0 £312,878

Net Cash Flow From Financing Activities

£2,927,942

-£281,735

-£291,755

-£302,132

-£312,878

£0 £29,226 £29,226

£29,226 £381,033 £410,259

£410,259 £388,766 £799,025

£799,025 £453,713 £1,252,738

£1,252,738 £516,038 £1,768,776

Cash Flow from Financing Activities

Opening Cash Balance Changes in cash during the Year Closing Cash Balance

46

FINANCIAL PLAN – BALANCE SHEET PARTICULARS

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Fixed Assets Building Depreciation Closing Balance

£3,200,000 £96,000 £3,104,000

£3,104,000 £93,120 £3,010,880

£3,010,880 £90,326 £2,920,554

£2,920,554 £87,617 £2,832,937

£2,832,937 £84,988 £2,747,949

Total Fixed Assets

£3,104,000

£3,010,880

£2,920,554

£2,832,937

£2,747,949

Cash Balance

£29,226

£410,259

£799,025

£1,252,738

£1,768,776

Total Current Assets

£29,226

£410,259

£799,025

£1,252,738

£1,768,776

£3,133,226

£3,421,139

£3,719,578

£4,085,675

£4,516,725

Equity Reserves and Surplus Profit for the Year

£0 £205,284

£205,284 £569,648

£774,932 £590,195

£1,365,127 £668,229

£2,033,356 £743,928

Total Equity

£205,284

£774,932

£1,365,127

£2,033,356

£2,777,284

Bank Loan Repayment of Bank Loan Closing Balance

£3,200,000 £272,058 £2,927,942

£2,927,942 £281,735 £2,646,207

£2,646,207 £291,755 £2,354,452

£2,354,452 £302,132 £2,052,320

£2,052,320 £312,878 £1,739,442

Total Liabilities

£3,133,226

£3,421,139

£3,719,578

£4,085,675

£4,516,725

Assets

Current Assets

Total Assets Liabilities

47

FINANCIAL PLAN – FINANCIAL CHARTS FINANCIAL CHART

STRUCTURE OF EXPENSES

£3,500,000

4%

£3,000,000

7%

5%

£2,500,000

10% £2,000,000

£1,500,000

10%

£1,000,000

£500,000

64%

£0

YEAR 1

Total Revenue

YEAR 2

Total Expenses

YEAR 3

Profit after Tax

YEAR 4

YEAR 5

Closing Cash Balance

Employee Cost

Cost of Sales

Administrative Cost

Depreciation on Building

Interest on Loan

Tax Expense

48

FINANCIAL PLAN – OCCUPANCY AND FEE TOTAL OCCUPANCY (YEAR 1) 46

TOTAL OCCUPANCY (YEAR 2)

49

49

49

49

49

49

49

49

49

49

49

49

49

49

49

49

40 34 28 21

17 10 4

Month Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11 12

Month Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11 12

AVERAGE WEEKLY FEE (YEAR 1)

AVERAGE WEEKLY FEE (YEAR 2)

£1,100 £1,100 £1,100 £1,100 £1,100 £1,100 £1,100 £1,100 £1,100 £1,100 £1,100 £1,100

£1,100 £1,100 £1,100 £1,133 £1,133 £1,133 £1,133 £1,133 £1,133 £1,133 £1,133 £1,133

£1,000 £1,000 £1,000 £1,000 £1,000 £1,000 £1,000 £1,000 £1,000 £1,000 £1,000 £1,000

£1,000 £1,000 £1,000 £1,030 £1,030 £1,030 £1,030 £1,030 £1,030 £1,030 £1,030 £1,030

£750

£750

£750

£750

£750

£750

£750

£750

£750

£750

£750

£750

£750

Month Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11 12 Dementia

Nursing

Private Residents

£750

£750

£773

£773

£773

£773

£773

£773

£773

£773

£773

Month Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11 12 Dementia

Nursing

Private Residents

49

FINANCIAL PLAN – INCOME AND EBITDA INCOME AND EBITDA (YEAR 1) £204,100 £204,100 £191,750

£204,100 £204,100

INCOME AND EBITDA (YEAR 2) £210,223 £210,223 £210,223 £210,223 £210,223 £210,223 £210,223 £210,223 £210,223 £204,100

£204,100 £204,100

£167,050

£142,350 £117,650

£86,450 £68,250 £38,567 £13,000 Month Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11 12 Month Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11 12

Total Income

EBITDA

Total Income

EBITDA

50

APPENDIX

51

BUSINESS STRUCTURE – GROUND FLOOR PLAN

52

BUSINESS STRUCTURE – FIRST FLOOR PLAN

53

MARKET RESEARCH– UK ELDERLY CARE INDUSTRY ELDERLY CARE INDUSTRY OVERVIEW: The elderly care industry can be split into two categories – nursing homes and residential care homes. Nursing homes are private hospitals for elderly residents requiring high levels of care, staffed by managers and nurses with advanced levels of medical and care training. Residential care homes, on the other hand, are old people's homes. They provide a place to stay for elderly people who perhaps cannot do everything for themselves, yet nevertheless enjoy a degree of independence and require little hands-on care. They are staffed by qualified carers whose level of training need not be as advanced as those working in nursing homes.

STRUCTURE OF CARE HOMES IN UK: The UK is one of the largest care home markets in Europe, but the sector remains highly fragmented and in urgent need of reform. According to the findings of a recent study, 78% of care home beds are in properties not originally built with care use in mind. This means they may no longer be compatible with modern requirements when it comes to design, layout, and the level of amenity provision that should be expected in a leading global economy.

COMPOSITION OF CARE HOMES: Despite the scale of development in the last decade, purpose-built care homes that are less than 20 years old account for just 22% of all care home supply. Conversions from houses, hotels and other uses still account for 51% of all beds, while 73% of all beds, both purpose-built, and conversion, pre-date the 21st century.

DEMAND FOR CARE SERVICES: Care homes are becoming increasingly the domain of residents with the highest levels of acuity and need for nursing provision. Residents who have lower-level care needs are opting for Later Living schemes, and as the country continues towards an aged demographic profile, the demand for both types is set to increase.

The advancement in healthcare and a trend towards a healthier lifestyle has increased the average life span of people, that have caused the older population to swell in number, and while this is great news, there are some important social consequences. Elderly people are often unable to look after themselves in the twilight years, and with more people living longer, the demand for resources to care for them is growing. Family and friends often help, but an increasing amount of the responsibility is being taken up by a growing sector of care providers. The figure of older people in care homes now approaches 500,000 in the UK alone.

CAPACITY OF UK TO MEET THE DEMAND: The UK healthcare industry requires substantial investment to keep pace with present demand, let alone the provision that is going to be needed for the future as the population continues to age. Whilst the overall bed numbers have increased, this is still nowhere near enough to address the crisis in the provision and is likely to be further exacerbated as the next generation ages at a faster rate than new care homes that can be developed.

SOURCES

https://startups.co.uk/guides/buying-a-business-nursing-homes/ https://www.smf.co.uk/wp-content/uploads/2020/09/A-market-for-residential-care-services-Sept-20.pdf https://www.propertyfundsworld.com/2020/08/05/288256/uk-care-home-industry-short-beds-says-knight-frank-report

12,100

Total elderly care homes in the United Kingdom in 2020 as compared to 12,250 in 2019

480K

Total elderly care beds in the United Kingdom in 2020

40 BEDS

Average elderly care home size in the United Kingdom in 2020

79

Number of new elderly care homes completed in United Kingdom in 2019

CARE HOME SUPPLY BY TYPE 51% 22%

Pupose-built since 2000

27%

Purpose-buit pre 2000

Not purpose-built

54

MARKET RESEARCH– CARE HOMES IN UK LIMITED CAPACITY: There are currently 480,000 older person care home beds in the UK, over 5,000 fewer beds than five years ago, and 55,500 fewer beds than in 2000. Over the last decade, almost 80,000 beds have been removed from the sector with the closure of 2,840 care homes, which are typically smaller homes with an average size of 28 beds. Although these have been replaced by 82,250 new beds in 1,540 care homes, equivalent to 53 beds per home, the size of the sector is not increasing at the pace or scale required to match demographic changes (old age population increase).

6,500

80K

Number of elderly care homes at the risk of closure over the next 5 years (from 2020), equating to 140K beds

80,000 beds have been removed from the industry over the last decade

CARE HOME BEDS FOR PEOPLE AGED 75 AND OVER: Between 2012 and 2020, the overall number of beds in care homes (nursing and residential) per 100 people aged 75 and over declined from 11.3 to 9.6 – depicting a 15% decrease. Likewise, the number of nursing home beds per 100 people aged 75 and over fell from 5.2 to 4.7 – depicting an 11% decrease. The decrease in the availability of beds indicates a significant fall in social care provision for older people, which comes at a time of expected growth in demand due to the ageing population. A downward trend in the registration of new care homes, combined with an upward trend in closures, has resulted in a net reduction in the number of beds available.

CARE HOME BEDS PER 100 PEOPLE AGED 75 AND OVER

SINCE 2000

11.3

11

10.8

10.6

10.4

10.3

10.1

9.8

5.2

5.2

5.2

5.1

5.1

4.9

4.9

4.8

2012

2013

2014

2015

2016

CARE HOME BEDS SOURCES

2017

2018

2019

Northeast

11.0

Northwest

10.0

East Midlands

10.3

Yorkshire & The Humber

10.1

West Midlands

9.4

Southeast

10.2

Southwest

9.4

East of England

9.0

London

7.2

England

9.6

9.6 4.7

2020

NURSING HOME BEDS

https://www.jll.co.uk/en/newsroom/uk-care-home-sector-set-for-shakeup https://www.nuffieldtrust.org.uk/resource/care-home-bed-availability#background https://lginform.local.gov.uk/reports/lgastandard?mod-metric=11102&mod-area=E92000001&mod-group=AllRegions_England&mod-type=namedComparisonGroup UK care home industry short of beds, says Knight Frank report (propertyfundsworld.com)

CARE HOME BEDS PER 100 PEOPLE AGED 75+ BY REGION IN 2020

65+ Population +3M

Care home beds - 55,500 55

MARKET RESEARCH– CARE HOMES IN UK CARE HOME BEDS FOR PEOPLE AGED 85 AND OVER: While the UK care home market is growing in absolute terms, it is shrinking in relative terms. The number of care home beds per 100 people over the age of 85 has fallen from 33.7 in 2010 to 28.7 in 2020. If the same rate of growth in reduction of beds (0.6% CAGR) is applied to the next decade, bed provision will fall much further unless new development increases to keep pace with the U.K.’ rapidly growing elderly population.

POPULAITON OF PEOPLE AGE 85+ IN DEVON IN 2019

Devon

10,451

ELDERLY CARE BEDS PER 100 PEOPLE AGED 85+ BY REGION IN 2020 Northeast

35.9

Northwest

32.4

East Midlands

31.6

Yorkshire & The Humber

31.5

West Midlands

28.4

Southeast

28.1

Southwest

27.2

East of England

26.2

London

19.7

Northern Ireland

34.9

Scotland

28.9

Wales

25.7

18,211

East Devon

2,568

4,306

Exeter

1,030

2,371

Mid Devon

937

1,631

North Devon

1,243

2,091

South Hams

1,207

1,852

Teignbridge

1,790

3,243

Torridge

892

1,441

West Devon

784

1,276 56

MARKET RESEARCH– RESIDENTIAL NURSING CARE INDUSTRY OVERVIEW: The residential nursing care industry demand has risen over much of the past five-year period, in line with the ageing of the UK population. The revenue of the industry reached £7.7 billion in 2020-21. The industry revenue is forecast to rise at a compound annual rate of 1% over the five years through 2025-26 reaching £8.1 billion by the end of 2025-26. The robust demand from an ageing population is expected to aid industry growth over the next five years while rising income levels and growing concern over limited state funding are expected to lead to growth in the private sector. The growing need for care and the weakened pound has framed the industry as an attractive investment opportunity for international investors. The industry is expanding at a slightly faster rate than the wider economy, with GDP forecast to grow at a compound annual rate of 2.3% over the same period.

LIMITED INVESTMENT BY LOCAL GOVERNMENT: The Local Government Association (LGA) has reported that adult care services across the United Kingdom will face a £3.5 billion funding gap by 2024-25. Uncertainty about the source and level of social care funding beyond 2021 is also limiting local authorities' ability to plan and build capacity in the care provider market, particularly following the fluctuations of funding and demand in the current year.

INDUSTRY PLAYERS: The industry is dominated by private-sector care homes which accounted for 65.2% of the industry revenue in 2020-21. The public sector care homes accounted for a considerably smaller share of revenue than private-sector care homes at 25.3%. Currently, the third sector ( i.e., voluntary care) accounts for a modest 9.5% of industry revenue. As the public and private sectors increasingly seek affordable nursing care options, voluntary care providers are expected to gain market share.

INDUSTRY REVENUE (IN £ BILLION) £8.1

2020-21

SOURCES

https://www.ibisworld.com/united-kingdom/market-research-reports/residential-nursing-care-industry/

£7.3

£7.3

2021-22

2022-23

£7.5

2023-24

2024-25

2025-26

INDUSTRY SEGMENTATION Private-sector care

Public-sector care

Voluntary care

65.2%

25.3%

9.5%

FUNDING OF CARE: In the United Kingdom, most people living in residential nursing care facilities have traditionally been publicly funded. However, the fully self-funded market, which now accounts for almost half of nursing home places, has grown at a much faster rate than the publicly funded market.

The self-funded market excludes people that top up by purchasing add-ons to council-funded nursing home care.

MARKET SHARE CONCENTRATION: The residential nursing care industry exhibits a low level of market share concentration and is highly fragmented. The top four players in the industry accounted for 16.5% of the industry revenue in 2020-21. While several of the larger firms have expanded their operations through acquisitions, several small players have entered the industry in line with the rising demand. So, entering the market and penetrating a huge share is easy for the new players.

£7.8

£7.7

MARKET SHARE CONCENTRATION

16.5%

83.5% Major Players

Minor Players

57

MARKET RESEARCH– RESIDENTIAL NURSING CARE CARE HOME RESIDENTS’ DEMOGRAPHY: Residents aged 75 or older are estimated to occupy 76.9% of all residential nursing care beds. Residents are disproportionately women because they tend to live longer than men and are less likely to have a partner to care for them. However, the gender gap has narrowed over the past decade as more men are reaching old age. Care home census data indicates that there were 2.8 women for each man aged 65 and over in 2011, compared with a ratio of 3.3 women for each man in 2001. The gap is expected to close further in the 2021 census.

PEOPLE AGED 85 AND OVER: According to the latest ONS census data from 2011, The median resident age for residential nursing care facilities is 85 years of age. People of this age group are more likely to require sustained nursing care. As they age, physical and mental ailments become more prevalent. Longer life expectancy and an ageing population are likely to increase the median care home age over the coming years. This age bracket accounted for 45.2% of residential care home beds in 2020-21.

PEOPLE AGED BETWEEN 75 AND 84: People in this age group accounted for 31.7% of the residential nursing care beds in 2020-21. Men are likely to be predominant in this group, as the median age for male residents is approximately 81 according to 2011 census data. Their female counterparts, with longer life expectancy, are likely to be five years older than men.

PEOPLE AGED BETWEEN 65 AND 74: In 2020-21, residents in this age bracket accounted for 16.2% of nursing care beds. Many in this group will not require continual nursing care and can live at home. Domiciliary care is often a much more suitable option for those in this age category. Restrictions to public funding over the past five years have resulted in elderly people delaying to opt for residential care until absolutely necessary to limit private expenditure.

PEOPLE AGED 64 OR UNDER: These residents are the minority, accounting for an estimated 6.9% of residential care home spaces nationwide in 2020-21. Mental and physical disabilities often explain the need for intensive care for younger residents. A small segment of the population requires residential nursing care early on in life.

PROPORTION OF CARE HOME RESIDENTS People aged 85 and over

45.20%

People aged 75 and 84

SOURCES

https://www.jll.co.uk/en/newsroom/uk-care-home-sector-set-for-shakeup https://www.jll.co.uk/en/newsroom/uk-care-home-sector-set-for-shakeup https://www.ibisworld.com/united-kingdom/market-research-reports/residential-nursing-care-industry/

Population of people aged 85 and over in the UK by 2030 as compared to 1.6 million in 2020

36%

Number of people aged 85 and over will increase by 36% between 2015 and 2025

2X

Number of people aged 75 and over is expected to double over the next 30 years

£3.5 BILLION

Funding gap in adult care services across the U.K. by 2024-25

10K+

Industry requires over 10,000 additional beds per annum over the next decade

78%

78% of care home beds are in properties not originally built with care use in mind

31.70%

People aged 65 and 74 People aged 64 or under

2.1 MILLION

16.20% 6.90%

58

MARKET RESEARCH– REGIONAL ANALYSIS BUSINESS CONCENTRATION: The geographical distribution of industry activity is largely influenced by the distribution of people aged 65 or over and, to a lesser extent, by local government and NHS policies affecting the level of service provision. Within England, the shortage of places is particularly acute in London. There also appears to be a North-South split, since there are more places available per thousand people in the North of England than in the South and the Midlands.

THE SOUTHEAST: The Southeast is a popular retirement region. The coastline, good transport infrastructure, and appealing rural landscape in many places ensure that it is popular with individuals wishing to make the most of non-working life. The region has the greatest share of establishments, accounting for 15.2% of the total, although prices in nursing homes are the second most expensive after London.

SCT 8.4%

THE NORTHWEST: The Northwest is home to the second-largest contingent of residential nursing care homes and accounts for 11.8% of industry establishments. This is consistent with population distribution. The Northwest contains 11% of the national population.

THE SOUTHWEST: The Southwest has the third-highest concentration of industry operations. The region accounts for 9.5% of establishments in the industry, higher than its 8.4% share of the population. This is due to the high percentage of elderly people living in the region, often due to its proximity to the coast as well as appealing rural landscape, much like the Southeast, making it a popular retirement location.

OTHERS: London accounts for 9% of industry establishments due to the city's high population share. The West Midlands accounts for 8.7% of industry establishments, slightly higher than the share of the population living in the area.

INSIGHTS: According to the data provided by the government, the proportion of the population aged 65+ in Southwest amounted to 21.1% of the overall population in 2014, which is the highest among other regions. The proportion of the population is set to rise to 23.8% of the population by 2024, depicting an increased demand for care home services in the region. Moreover, out of total people with dementia (885K), 81,000 are living in the Southwest. The growing ageing population coupled with increasing dementia prevalence in the Southwest region is further projected to create a huge demand for care homes in the region.

SOURCES

https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationprojections/compendium/subnationalpopulationprojectionssupplementaryanalysis/2014basedprojections/howthepopulationofenglandisprojectedtoage https://www.ibisworld.com/united-kingdom/market-research-reports/residential-nursing-care-industry/

NE 4.3% NIR 4.7% NW 11.8%

WAL 4.8%

YKS 8.4%

EMD 7.5%

WMD 8.7% UKH 7.7% LDN 9%

SW 9.5% SE 15.2%

59

MARKET RESEARCH– CARE HOMES STATISTICS TOTAL NUMBER OF ELDERLY CARE HOMES: The UK Healthcare Development Opportunities 2020 research report shows that while the number of homes has fallen marginally from 12,250 homes in 2019 to 12,100 homes in 2020, the number of beds has increased by 2,500 nationwide. This is driven by smaller outdated care homes closing whilst larger, purpose-built care homes or existing homes are adding beds to create more efficient and viable schemes throughout the UK. CLOSURE OF CARE HOMES: The new stock replacing old and outdated stock is a positive step forward. Whereas the extent of home closures and de-registrations taking place means that the market is struggling to expand at the pace required for future demand. In the 201920 (financial year), a total of 7,058 beds (122 homes) were newly registered and 6,789 (233 homes) were de-registered.

REASONS FOR CLOSURE OF CARE HOMES: In recent years, the level of care home closures continues to offset the building of new homes. In 2019-20, a total of 233 care homes was closed and only 122 new care homes opened. To cope with rising demand, many existing homes are now adding beds through extensions and redevelopments, helping somewhat to grow the number of beds, but that is not making a significant difference.

With 58% of de-registered homes rated as ‘inadequate’ or ‘requires improvement’ by the Care Quality Commission (CQC), failing care standards are a clear cause of the closure.

Financial stress is an equally significant cause of closure. Increasing costs, especially staffing costs, have impacted many care homes in recent years at a time when fee levels derived from local authorities have been frozen.

NUMBER OF CARE HOMES IN DEVON: There are 379 care homes in Devon, with 93 offering nursing care. 239 care homes in Devon offer specialist care designed to meet the challenges faced by people living with dementia. There are 76 care homes in Plymouth offering a range of specialisms. 49 care homes in Plymouth offer specialist dementia care. On average residential care homes in Southwest cost £700 per week, with nursing homes costing on average £1,015 per week.

DECLINE IN NUMBER OF BEDS IN DEVON: Devon has been named as having the fifth sharpest decline in the number of care beds outside of London. There were 8,198 care home beds in Devon in 2014, which decreased to 7,189 beds in 2019. From 2015 to 2019, the number of beds has decreased by just over 1,000, which is the equivalent of a 12.3% drop.

SOURCES https://www.knightfrank.com/research/report-library/details.aspx/healthcare-development-opportunities-2020-7355.aspx https://www.devonlive.com/news/devon-news/how-many-care-home-beds-2936449 https://www.caresourcer.com/s/providers/counties/devon/care-home/ https://www.caresourcer.com/s/providers/towns/plymouth/care-home/

NUMBER OF CARE HOMES BY REGION Southeast

1,920

Northwest

1,460

Southwest

1,400

East of England

1,120

West Midlands

1,100

East Midlands

1,030

Yorkshire & The Humber

1,000

London

730

Northeast

550

Scotland

830

Wales

630

Northern Ireland

330 60

MARKET RESEARCH– CARE HOMES STATISTICS NET GAIN/LOSS OF BEDS BY REGIONS: The regions with higher urban concentrations have reported greater net gains in care beds over the last three years. This is the case for the Southeast, Northwest, and Midlands regions but London is an exception because of the barriers to new development in this region. The Southwest has lost the most beds, with many outdated and rurally located homes closing.

NEW CARE HOMES: In 2019, 79 new care homes were completed in the United Kingdom. While 2020 was on course to post a similar number until construction sites were frozen in the COVID-19 outbreak. A quarter of new builds are occurring in Southeast of England where the demand fundamentals are strongest, owing to a large elderly population and an affluent one at that.

Despite this, new build activity is widespread across the UK with opportunities for development across all regions.

OCCUPANCY OF NEW CARE HOMES: The most-new care homes take at least 24 months to reach mature levels of occupancy. However, there is huge variation between new homes – some reaching maturity after only 12 months and others only 50% occupied after three years of operations. This highlights the importance of careful site selection, higher expectations of care quality, and demand for a range of facilities and amenities that aim to improve the quality of later living so new homes can reach optimal income as soon as possible.

SOUTHWEST EAST OF ENGLAND YORKSHIRE & THE HUMBER NORTHEAST LONDON WALES SCOTLAND EAST MIDLANDS WEST MIDLANDS NORTHWEST SOUTHEAST 0

200

400

600

800

1000

1200

1400

1600

1800

2000

NET GAIN/LOSS OF BEDS BY REGION (2018 to 2020) SOUTHEAST NORTHWEST

OCCUPANCY RATE SINCE OPENING 120% 100% 80% 60% 40% 20% 0%

NEW BEDS COMPLETED (JANUARY 2019 TO APRIL 2020)

WEST MIDLANDS EAST MIDLANDS SCOTLAND

Highest

NORTHERN IRELAND

Lowest

WALES

Average Less than 12 months

12 to 24 months 24 to 36 months

36+ months

LONDON NORTHEAST YORKSHIRE & THE HUMBER EAST OF ENGLAND SOUTHWEST

SOURCES https://content.knightfrank.com/research/336/documents/en/healthcare-development-opportunities-2020-7355.pdf

-600

-400

-200

0

200

400

61

600

MARKET RESEARCH– FUNDING OF CARE LOCAL AUTHORITY SPENDING ON RESIDENTIAL CARE: The gross expenditure in 2019-20 on adult social care by local authorities was £19.7 billion. This represents an increase of £918 million from the previous year, a 4.9% increase in cash terms and a 2.4% increase in real terms. The area of care which saw the largest increase in expenditure was long-term support, which increased by £748 million to £15.4 billion in 2019-20, an increase in cash terms of 5.1%. Out of total expenditure, nearly 80% is spent on long-term care.

The average cost of residential care for a person aged 65 and over rose from £636 per week in 2018-19 to £662 per week in 2019-20, while the average cost of nursing care for the same age band increased from £678 per week in 2018-19 to £715 per week in 2019-20.

SHORTFALL: The social care system has long been under-resourced as local authority budgets have failed to keep pace with the demographic pressures of rising numbers of older and disabled people with complex care needs. Between 2010/11 and 2014/15, significant reductions in local authority funding led to cuts to social care budgets. While budgets have risen again over the past few years, in 2019/20 funding has only just returned to the levels of 2010/11 despite increasing demand.

The total spending by local authorities on adult social care was only £100 million more in real terms in 2019/20 than in 2010/11, despite increasing demand. Underfunding has forced local authorities to restrict eligibility, as a result, while more older people are approaching local authorities for support, fewer are receiving it.

SELF FUNDING BY CARE HOME RESIDENTS: In England, more than half (i.e., 54%) of care home residents are self-funded, as compared to 46% of care home residents who are partly or fully funded by their local authority. As the local authority often pays below the market rate of what it costs to provide a bed in a care home. The Competition and Markets Authority (CMA) estimates that in England, there is an average 43% fee differential between private and publicly-funded residents for the cost of a bed in the same home. This average price differential amounts to £245 a week or over £12,500 a year. Across England, there are large regional differences in average fees for self-funders with older people in the Southeast paying nearly £400 a week more than those in the Northeast. The average annual fee for self-funders is £44,252, far higher than the average feed paid by councils £31,720. The difference between the two groups is £12,532 or more than approximately £1,000 a month extra for the self-funder.

AVERAGE ANNUAL FEE PER YEAR PER RESIDENT £55,276

£44,512

£44,252 £31,720

ENGLAND

£54,652

£36,920

£38,116

£30,368

SOUTH EAST

GREATER LONDON EAST OF ENGLAND

£43,108

£40,352 £28,288

NORTH WEST

£31,460

WEST MIDLANDS

LOCAL AUTHORITY SOURCES

https://www.kingsfund.org.uk/projects/positions/adult-social-care-funding-and-eligibility https://blog.ons.gov.uk/2021/02/03/social-care-estimating-the-size-of-the-self-funding-population/ https://www.ageuk.org.uk/globalassets/age-uk/documents/policy-positions/care-and-support/ppp_care_homes.pdf https://www.justgroupplc.co.uk/~/media/Files/J/JRMS-IR/news-doc/2019/190902-release-care-home-self-funders-charged-12500-a-year-more-than-council-funded-residents.pdf

£45,552 £34,164

SOUTH WEST

£40,612 £30,472

EAST MIDLANDS

£37,544 £27,716

YORKS & THE HUMBER

£34,788 £29,536

NORTH EAST

SELF FUNDER

62

MARKET RESEARCH– POPULATION WITH DEMENTIA OVERVIEW: The risk of developing dementia increases exponentially with age. As population ageing continues to accelerate in the UK, the number of people living with dementia is set to rise sharply in the decades to come. There were almost 885K (883,100) older people with dementia in the UK in 2019, of whom 84.7% (749K people) live in England, 7.5% (66.3K people) live in Scotland, 5.3% (46.8K people) live in Wales, and 2.5% (22K people) live in Northern Ireland.

Among the people with dementia in the UK, approximately 127K (126,900) have mild dementia, 246K (245,600) have moderate dementia and 511K (510,600) have severe dementia. Of the four countries, England has the highest overall prevalence rate of dementia among older people (7.2%).

RISE IN NUMBER OF OLDER PEOPLE WITH DEMENTIA: The number of older people with dementia in the UK is projected to increase by 80%, from almost 885K in 2019 to approximately 1.6 million in 2040. The prevalence rate of dementia in the UK is projected to reach 8.8% in 2040.

OLDER POPULATION GROWTH: As dementia is most prevalent among older people, the growing older population in the region will increase the threat of people getting affected by the same. According to the ONS population projections, while the number of older people aged 65-74 in the UK will increase by 20% between 2019 and 2040, the number of older people aged 85 and above will increase by 114%. The number of older people aged 65 and over is projected to increase by 58% in Northern Ireland, 47% in England, 41% in Scotland, and 33% in Wales by 2040.

8.8%

The prevalence rate of dementia among older people in the UK in 2040 as compared to 7.1% in 2019

1 MILLION

Number of older people with dementia in the UK by 2024 as compared to 885K in 2019

95%

Northern Ireland is projected to have the largest increase with the number of people with dementia rising by 95% between 2019 and 2040

6 in 10

Out of 10 older people in care homes, 6 are with dementia turning out to be 609%

OLDER PEOPLE WITH DEMENTIA IN THE U.K.

1,066,000 510,600

542,600

245,600

236,900

250,300

280,400

327,500

126,900

128,400

140,700

160,900

196,600

2019

2020

2025

2030

2040

Mild SOURCES

https://www.scie.org.uk/dementia/about/

792,100

669,100

Moderate

39%

Out of people those who are aged over 65 living with dementia, 61% live in the community in their own homes. The rest – 39% live in a care home

Severe

63

MARKET RESEARCH– DEMENTIA REGIONAL ANALYSIS REGIONAL ANALYSIS: The dementia prevalence rate is projected to increase from 7.2% in 2019 to 8.3% in 2040 in England, from 6.3% to 7.7% in Scotland, from 7.0% to 9.0% in Wales, and from 6.9% to 8.5% in Northern Ireland.

OLDER PEOPLE WITH DEMENTIA IN NORTHERN IRELAND 2019

2040

MILD

3,200

5,200

MODERATE

6,200

SEVERE

12,700

OLDER PEOPLE WITH DEMENTIA IN WALES 2019

2040

MILD

6,700

9,900

9,000

MODERATE

13,000

16,100

28,600

SEVERE

27,100

53,700

OLDER PEOPLE WITH DEMENTIA IN ENGLAND 2019

2040

MILD

107,100

166,700

MODERATE

206,300

SEVERE

434,600

OLDER PEOPLE WITH DEMENTIA IN SCOTLAND 2019

2040

MILD

9,900

14,800

276,100

MODERATE

20,100

26,300

909,600

SEVERE

36,200

74,000 64

MARKET RESEARCH– COST OF DEMENTIA CARE COST OF DEMENTIA CARE: The total costs of dementia in the UK in 2019 amounted to £34.7 billion at 2015 prices. The total costs in England, Scotland, Wales, and Northern Ireland are £29.5 billion, £2.6 billion, £1.8 billion, and £0.8 billion, respectively. Health care accounts for 14% (£4.9 billion) of the total costs in the UK, whereas social care (publicly and privately funded) and unpaid care account for 45% (£15.7 billion) and 40% (£13.9 billion), respectively, of the total costs. The rest of the cost relates to other healthcare costs.

The total cost of dementia care in the UK is projected to increase by 172%, from £34.7 billion in 2019 to £94.1 billion in 2040, at constant 2015 prices.

DEMENTIA COST FOR OLDER PEOPLE IN SCOTLAND (IN MILLION) £3,030 £2,800

COST OF DEMENTIA FOR OLDER PEOPLE IN THE UK IN 2019 (IN MILLION) £12,500

2040

DEMENTIA COST FOR OLDER PEOPLE IN ENGLAND (IN MILLION) £39,200

£45,400

£35,700

£500

£7,900

2030

£27,900

£23,100

£300

£30,100 £1,100 £1,100

£900

£13,500 £11,700

£370

£6,300

£10,600

£4,100 2025 2019

2040

HEALTHCARE

SOCIAL CARE

2019

DEMENTIA COST FOR OLDER PEOPLE IN WALES (IN MILLION) £2,130

£770 £260

£740

HEALTHCARE

UNPAID CARE

SOCIAL CARE

UNPAID CARE

DEMENTIA COST FOR OLDER PEOPLE IN NORTHERN IRELAND (IN MILLION) £1,050

£1,770

£630

£340

£21,600

£18,200

£200

2040

£350

£5,000

2020

£200

£4,900

£960 2019

£330

£16,900 £14,600

£15,700 £13,900

£200

£120

2019 HEALTHCARE

2040 SOCIAL CARE

UNPAID CARE

2019 HEALTHCARE

2040 SOCIAL CARE

HEALTH CARE

SOCIAL CARE

UNPAID CARE

Others

UNPAID CARE

65

MARKET RESEARCH– REVENUE DRIVERS RAPIDLY GROWING ELDERLY POPULATION: The UK population is ageing, and like many other countries, the UK’s age structure is shifting towards later ages. By 2050, it is projected that one in four people in the UK will be aged 65 years and over – an increase from approximately one in five in 2018. According to another source, UK’s over 85 population will grow to 3.7 million by 2050, as the post-war baby boom generation reach their twilight years.

By 2041, the 1960s baby boomers will have progressed into their 70s and 80s, and by 2068 there could be an additional 8.2 million people aged 65 years and over in the UK – a population roughly the size of present-day London. This would take the UK’s 65 years and over age group to 20.4 million people, accounting for 26.4% of the projected population. According to another source, the total number of disabled older people is projected to increase to 5.9 million people by 2040, which will further necessitate the care homes construction.

On the other side, as discussed in the above sections, the number of care home beds per 100 people over the age of 85 has fallen from 33.7 in 2010 to 28.7 in 2020 and is forecast to fall further. The company will tackle this situation of reducing care home beds by providing first-class care facilities at its care home, which in turn will increase the company’s revenue as well.

U.K. POPULATION IN MILLION 8.7 12.4

9.9 12.0

5.2 9.7 13.0

5.8 10.4

7.0 11.1

7.8 12.0

13.4

12.9

12.6

12.7

13.4

12.7

12.9

13.6

13.7

13.3

13.2

12.6

12.4

12.3

12.6

13.2

13.5

11.4

12.0

12.3

12.3

12.3

12.4

2014

2019

2024

2029

2034

2039

0-14

15-29

30-44

45-59

60-74

75+

SOURCES https://www.knightfrank.com/research/article/2020-08-12-6-reasons-why-the-uk-needs-to-build-more-elderly-care-homes https://foresightprojects.blog.gov.uk/wp-content/uploads/sites/191/2017/05/01-General_AW1.1.pdf https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/articles/overviewoftheukpopulation/august2019#:~:text=The%20population%20aged%2065%20years,trends%20in%20fertility%20and%20mortality.&text=In%201998%2C%2063.6%25%20of%20the,decline%20to%2058.4%25%20in%202038. https://www.propertyfundsworld.com/2020/08/05/288256/uk-care-home-industry-short-beds-says-knight-frank-report https://www.ageuk.org.uk/globalassets/age-uk/documents/reports-and-publications/reports-and-briefings/health--wellbeing/age_uk_briefing_state_of_health_and_care_of_older_people_july2019.pdf

HIGH GROWTH IN OVER 85 POPULATION: The UK's ageing population is well documented, and although much of the focus is on the increase in over 65s, the greater challenge is presented by the pace and scale of growth in over 85s. This age group is set to increase by 27.5% to 2030, with an estimated 460,000 more people of this age in the decade. This is seven times the growth rate of the overall UK population and 16 times faster than the working age population. Over 85s are the most prevalent users of care homes, with 13% of that age group residing in a nursing or residential care home.

Although life expectancy continues to increase for older people, old age also increases the prevalence of long-term illness, and in many cases results in more than one (co-morbidity). This substantial increase in user base will help the company to capture the market easily and increase its revenue base.

Based on current occupancy rates, the rise in dementia, and the high levels of comorbidity amongst older people, the UK would require a further 10,000 additional care home beds per annum to 2030 to keep up with demand. With advances in medicine and an emphasis on day surgeries, there is likely to be an increase in demand for care home beds where they provide intermediate care. This is a model that runs successfully in many European countries as it is more cost-effective to rehabilitate people in a care home setting than in an acute hospital.

POPULATION GROWTH UK (2020-2030) Older people with dementia

35.80%

85+

27.50%

65+ Wokring Age Total

20.60%

1.70% 3.90%

66

MARKET RESEARCH– REVENUE DRIVERS OBSOLESCENCE IN CARE HOMES: Of the UK’s care homes, an estimated 70% is now aged 20 years or older. Conversion homes and even 1990’s purpose-built homes are becoming increasingly outdated, as the care standards are improving, and specifications are changing more than they have done in the past. Fit-forpurpose homes are now expected to contain full en-suite and wet room facilities, wider corridors and ample leisure and living facilities. Many homes are struggling to meet these new expectations.

Recent research finds that a potential 6,500 care homes are at risk of closure over the next 5 years, equating to 140,000 beds. It is further estimated that the UK requires in excess of £15 billion to upgrade existing beds to future-proof for the ageing population. This shortage will be exacerbated by the increased demand for care homes by 2050, which will see a national bed crisis in the UK as the share of people over the age of 80 is expected to surge over the next 30 years, with one in ten adults set to be over 80 by 2050, compared to one in twenty currently.

The company will put in its efforts in this regard by developing the state-of-the-art facilities at its care home to be built. The company has designed the care home keeping in mind all legal and other requirements and will put all its efforts to give its resident a very pleasant and wonderful living experience. This is in turn will help the company to capture a significant share in the market and grow its revenue exponentially.

DE-REGISTRATION OUTPACING REGISTRATION: In 2019-20, 233 care homes were de-registered and only 122 new care homes were registered. The major reason for the closure of the care homes is falling to meet the care standards prescribed by the Care Quality Commission (CQC). The current level of home closures is heightening the need for new homes to replace those lost so that the industry would be able to meet the increased demand.

As discussed in the preceding paragraph, the company has designed the care home by considering all the legal requirements, which will surely help the company to fill a void created in the market by the closure of existing care homes and increase its user base too.

SOURCES

https://www.jll.co.uk/en/newsroom/uk-care-home-sector-set-for-shakeup A market for residential care services https://www.ageing-better.org.uk/work-state-ageing-2020

INCREASE IN OLD AGE PEOPLE WITH DEMENTIA: Dementia is one of the main factors driving the demand for long-term care. Research by the Alzheimer’s Society suggests 69% of all care home residents have diagnosable dementia. The number of older people with dementia is set to increase from 908,000 in 2020 to 1.23 million by 2030, an increase of 35.8%. This compares to a 3.9% increase in the total UK population during the same period. Many of these people will require a form of long-term care.

INCREASE IN SELF-FUNDING (PRIVATE-PAYING MARKET) RESIDENTIAL CARE: The next generation of over 85’s will have many affluent and high-income members who won’t qualify for state-funded care and will also want to pay a premium for the best possible residential care. The self-funded (private-pay) market is already driving much of the new development across the UK, and it is expected that it will continue going forward with private-funded homes performing and trading strongly. It is also predicted that the number of people who will have social care needs is going to grow in future. Research by the Personal Social Services Research Unit suggests that there will be an increase in demand for residential care services from both selffunders and those relying on support from local authorities, (an increase from 2015 to 2040 of 87% (self-funders) and 67% (government-funded) respectively. The reason for the increase in self-funders is due to a projected rise in the proportion of older people who own their own home and hence would not be eligible for local authority support. Older workers are significantly over-represented amongst selfemployed workers, with one in five people aged 50-64 working for themselves. The growing self-employed population will mean more demand for self-funded care facilities in the region.

PERCENTAGE OF WORKERS WHO ARE SELF-EMPLOYED IN THE UK 37.0% 10.7%

25 to 34

15.6%

19.1%

35 to 49

50 to 64

65+

67

MARKET RESEARCH– COMPETITOR ANALYSIS TORR HOME: Torr Home, original charity was founded in 1860, as The Devonport and Western Counties Association for promoting the general welfare of the blind. The charity then moved to Torr Home in 1929. It is situated in a beautiful 19th-century country mansion in the highest part of the City of Plymouth. The company provides services to people aged 65 and over.

Torr Home provides care and support for older people. The service is registered to accommodate 60 older people and is separated into two broader services namely dementia care and nursing/residential care. Torr Home supports up to 43 people who have nursing or residential care needs and the Glentor Centre supports up to 17 people living with dementia. Both Torr Home and the Glentor Centre are run as two separate services and have separate staff teams.

Person In-charge: David Davies (CEO)

Founding Year: 1929

KEY STATISTICS: Other home’s statistics are as follows: ▪ Torr Home has employed NVQ qualified care staff to carry out daily activities to stimulate residents and has a relaxing lounge with televisions for communal socialising.

Weekly Charges: £750 - £950

▪ The registered care categories at Torr Home are dementia, mental health condition, old age, physical disability, and sensory impairment.

▪ Torr Home provides care services such as residential care, dementia care, nursing care, retirement apartments, respite care, and daycare.

Maximum Residents: 60

▪ Torr Home has 60 single rooms out of which rooms with ensuite WC are 54.

STRENGTHS:

Number of Employees: 83

▪ Torr Home has more than 90 years of experience of operating in the care home industry.

▪ Torr Home has a 5-star food hygiene rating awarded by the Food Standards Agency during an inspection on the 20th Jan 2020.

▪ The relatives of the residents are very much satisfied with the care being given to residents in the home.

CQC Rating: Good and requires improvement in well-led

WEAKNESSES: ▪ According to the CQC rating, the company requires improvement in management.

▪ The care home targets only people aged 65 and over.

Location: The Drive PL3 5SY, Plymouth

343 Followers

10 Followers

11 Followers

68

MARKET RESEARCH– COMPETITOR ANALYSIS CONSORT HOUSE NURSING HOME: Consort House Nursing Home is a nursing and residential care home. It is registered to provide accommodation and personal care for up to 58 older people.

The service supports people with nursing needs, physical disabilities, mental health and/ or dementia. The service is on three floors, with access to upper floors via a shaft lift. All bedrooms have en-suite facilities. There is an outside garden area also. Overnight visitors can usually be accommodated at the facility.

Person In-charge: Elizabeth Daniels (Manager)

The care is run and managed by Xcel Care Homes Ltd. The company runs two care homes namely ‘Camelot Care’ and ‘Consort House Nursing Home’.

Founding Year: 1998

KEY STATISTICS: Other home’s statistics are as follows: ▪ The care homes at the company have been designed keeping easy access in mind. It is wheelchair accessible, with beautifully landscaped gardens that offer the residents as much rest and relaxation in the garden as possible.

Weekly Charges: £650 - £1000

▪ The care home’s services include nursing care, respite care, daycare, convalescence, long/short-stay rehabilitation, the disabled and physically frail, and people suffering from illness.

▪ The care home has 58 single rooms all of which are ensuite WC. ▪ The registered care categories at the care home include old age and physical disability.

Maximum Residents: 58

STRENGTHS: ▪ The care home specialises in the expert care of those with frailties, disability or illness.

▪ The care home received a food hygiene rating of 5 for the quality of food supplied to the residents.

Group Owner: Xcel Care Homes Ltd

▪ Residents may bring their own furniture. There is a lot of flexibility about meals. Activities are arranged daily.

There are opportunities to pursue hobbies.

CQC Rating: Good

WEAKNESSES: ▪ People are not satisfied with the working of staff at the care home, as they do not pick the call and do not respond to the customer’s requirements correctly. The staff turnover is also higher at the care home.

Location: Torr Lane, 35 Consort Close, Plymouth

69

MARKET RESEARCH– COMPETITOR ANALYSIS HARTLEY PARK CARE HOME: The Briscoe family have been local care home providers since 1991.

Given their vast experience of this care home industry, they built Hartley Park in 2011. It is a purposebuilt state of the art care home situated in a quiet, private area in the centre of the city of Plymouth, Devon. It has been designed not only with the Care Quality Commission (CQC) requirements in mind but also to reflect their visionary approach to caring for older people, in particular those with dementia or enduring mental health problems.

Person In-charge: Tom Croftfield (Manager)

The home provides a high standard of long-term residential care and caters to all stages of dementia.

So, there is no need for residents to move if their condition deteriorates. One of the most striking characteristics of the home is the feeling of space and light that it generates both indoors and outdoors. The home has 66 beds spread over 3 units, on 3 floors.

Founding Year: 2011

KEY STATISTICS: Other home’s statistics are as follows:

Weekly Charges: Starts at £600 per week

▪ The care home’s every bedroom measures 19.5 square metres with large low windows and boasts an en-suite wet room. All rooms have the double advantage of providing homely comfort while incorporating all the latest safety devices.

▪ The care home has been awarded ‘Investors in People Standard’ in 2013 and again in 2016 for the way they develop, support, and motivate their team.

Maximum Residents: 66

▪ The care home has been awarded an ‘Outstanding’ rating by Care Quality Commission (CQC) in 2014, 2017, and 2019.

▪ The care home achieved Dementia Quality Mark in November 2012 just over a year after it opened and has maintained and re-accredited annually.

Owner: Abholly (2008) Ltd

STRENGTHS: ▪ The care home has received a number of awards which demonstrates their dedication and the quality of care they provide to their residents.

▪ The care home employs experienced, and trained staff, who are committed to providing the highest quality of care and have a detailed understanding of the unique nature of dementia.

CQC Rating: Outstanding

WEAKNESSES: ▪ The home does not have a safe for the storage of small amounts of cash and valuable items.

Location: Hartley Road, Plymouth

885 Followers

70

MARKET RESEARCH– COMPETITOR ANALYSIS DEVONSHIRE HOUSE AND LODGE CARE HOME: Devonshire House and Lodge Care Home is located to the north of Plymouth, on the edge of Dartmoor. This is a purpose-built care home providing nursing and social care for older people who are physically frail, and older people who have mental health needs such as Alzheimer's disease. Accommodation is provided in single occupancy rooms, although some are spacious enough for companions. The majority of rooms are en-suite. The home has several lounges for relaxation and separate dining rooms, where residents can enjoy the company of others at mealtimes. Residents are served traditional home-cooked food using fresh produce with a daily menu choice.

Person In-charge: Kerrie Hughes (Home Manager)

Founding Year: 1990

KEY STATISTICS: Other home’s statistics are as follows: ▪ The care home is being run and managed by Harbour Healthcare which is a family-run concern. The company manages a total of 17 care homes out of which 11 are in Northern England, 4 in Southern England, and 2 in Wales.

Weekly Charges: £700 - £850

▪ The care home is registered in various care categories such as dementia, mental health condition, old age, physical disability, and younger adults and has specialisation in Alzheimer.

▪ The company (i.e., Harbour Healthcare Ltd) has been awarded ‘Top 20 Mid-size Care Home Groups 2020’ by the carehome.co.uk in 2017, 2018, 2019 and 2020.

Maximum Residents: 77

▪ The care home has 77 rooms (56 single and 4 shared rooms) out of which 55 are with ensuite WC. STRENGTHS: ▪ The staff takes cares of the residents very well and always go beyond the expectations, as the residents, as well as their relatives, are pretty much satisfied.

▪ The activity team work hard to ensure that resident’s interests and hobbies are available and special events and entertainers are added to the programme for resident’s enjoyment.

▪ Residents may bring their own furniture and choose their room decoration. There is a lot of flexibility about meals. Residents can usually bring their pet. Activities are arranged daily. There are opportunities to pursue hobbies and to help with gardening.

Number of Employees: 1400 (Group)

CQC Rating: Good

WEAKNESSES: ▪ Some people are not satisfied with the management of different tasks at the care home.

Location: Woolwell Road, Roborough, Plymouth,

415 Followers

312 Followers

112 Followers

71