Our client is a domiciliary care agency, a company providing qualified care staff so service users can stay in their homes, in the far West Midlands reaching to the Welsh border.
Established in 2015, our client has built a reputation for quality, service-user-focused care that has won it a very favourable position when bidding for work from local councils. It has also built up a healthy and growing private client base in that time.
Key notes
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• Domiciliary care agency supplying carers in Telford and Shropshire
• 127% turnover increase between 2020 and 2022
• 2022 gross margin at 16.66%
• Net profit before tax and after add-backs 8.83%
• 85% of business from local authorities, 15% of business from private service users
• Not owner-reliant – an established management team has effectively run the business for years
• Recently achieved sponsor’s licence allowing them to recruit overseas staff and retain their services exclusively
• A large roster of care staff (around 100) overseen by managers and care coordinators
• In-house staff training facility
• In-house carer recruitment team
• Strong relationships with decision-makers in local authorities and healthcare trusts.
• Gross and net profitability achieved in both years following significant expansion.
Multi-service provider
In recent years, a focus among decision-makers in charge of purchasing domiciliary care services has tended to work with agencies that specialise in a handful of disciplines. This, however, does not affect the levels of work given to incumbent suppliers, like our client, instead only affecting new market entrants.
The range of service users of client works with includes:
• Caring for adults over 65 years of age
• Caring for adults under 65 years of age
• Dementia care
• Learning disabilities
• Physical disabilities
• Sensory impairments
• Brain injury
• End of life
Actual work delivered include personal care, nursing care, domiciliary care, day care and respite care in the service user’s home.
Operational
The shareholding owners of the business now have minimal involvement in the business. They step away from the daily operations of the business and take frequent holidays. The main extent of their involvement is in holding monthly management meetings with the management team who run the business often in the shareholders’ absence. The management team have autonomy over most decisions but must consult the shareholders if they wish to discontinue service to a client. They are free to hire and fire staff at will and can expand the roster of care staff to meet demand.
The team consists of two managers, a deputy manager, a training manager, three care coordinators, a finance management and two recruitment personnel (one full-time, one part-time).
The recruiters run a “rolling recruitment process” and attract care staff via advertising, social media and career fairs. They handle interviews, and evaluation as well as conducting a Disclosure and Barring Service (DBS) check on successful candidates before handing them over for a 3-day induction training.
The agency provides staff with a 3-day training and induction course, covering essential topics like health and safety, first aid and medication management, among others. Post-induction, new staff transition to shadow days, gaining practical experience by working alongside seasoned carers. This blend of theoretical and on-the-job training ensures staff are well-prepared to provide high-quality care services.
Operational
There is considerable scope for further growth and margin improvement within the business. Thanks to that, its significant local presence and the expected growth of the home care market in the coming years, we expect interest in our client to be high.
Please contact Swan Corporate Brokers to express your interest, answer your question and send you a copy of the non-disclosure agreement to sign.
