Care Unlimited

Presented By

Kaleem KhanShahid Khan

Business Plan“Care Unlimited”

Care Unlimited Group• What do we do?

• Cardiff-based residential care home for the elderly (65+)

• What are we looking for?

• Venture Capital Investment of £2million • £1.5million being raised via property mortgage• Owner investment of £500,000

• What are we prepared to give?

• 49% stake of the Care Unlimited Group

Industry Analysis• Growing elderly population within the UK

• Demand increasing for residential care homes within the UK

• For-Profit Residential Care Home organisations holding 50% of the market share in 2008 & increasing

• A resilient 92% average occupancy rate throughout the UK 2007/2008

• Considered ‘safe’ to investment funds and other investor groups

Market Analysis • Potential Market Size

• 9.8 Million• Wales 3 Million

• Population• Cardiff Regional Market- 51,645

• Growth Rate• 0.7% Increase per year• 32% Growth by 2033.

• Market Scope - Mature & Fragmented

• Marketing Strategy - Local Healthcare Authorities, Website Advertising, Sponsorships and Networking.

Business Model

• 45 Bed rooms (30 En suites & 15 regular), fully furnished

• Short – Term care contracts (max 4 months)

• Long-Term Care Contracts (max 12 months).

• Government placements and private residence.

• All Meals and regular medical checkups included

• 24hrs support staff and security.

• Daily social and entertainment activity plan

• People-centred and environment friendly approach

Cont...

Business Model

Room with En Suite (30) £550 P/W

Regular Room (15) £450 P/W

Estimated minimum Occupancy Per Annum 85%- £982,350 P/A

Estimated Income per week £18,891.34 P/W

Estimated Costs Per Annum

(excluding salaries)

£47,200 P/A

Estimated Cost Per Week

(excluding salaries)

£907.70 P/W

Pricing Structure for Care Unlimited:

Competitor Analysis70 Care Homes & 18 Nursing Homes in the Cardiff Region.

Service Competitors XXX ltd

Bed rooms types Single & Shared Single & Shared with En-suite

Bedding & furniture Customer to carry their own Fully Furnished

24hrs assistance Few operators only (mostly 14hrs) 24 Hrs Assistance

Social Activities Basic interaction activities Social, Health & Religious activities

Awareness activities News papers provided T.V and FM available in all lounges

along with News paper reading facility

Care period Long & Short Long & Short

Facilities to bring pets Accepted by few care homes Accepted but with limited access

Nursing Activities Not provided Fortnightly visits for basic checks

Management Team

Rollout Plan

Risk Associated

• Changing Economic Conditions

• Availability of decent property on time

• Change in Healthcare Registration regulation

• Drastic change in safety standards

Exit Strategy

Points to note:

• Given the recent financial crisis the Care Unlimited Group is in a unique position to purchase specialist property at a considerable discount.

• Commercial property prices are expected to continue appreciating at an estimated 6.1% over the coming year (Reuters).

• Sale of business to either larger competitors or local competition should be achievable within a currently highly fragmented market looking to consolidate.

• With the purchase of the required land and building at £3.5 million, a small appreciation in value will gain significant equity.

Financial summary

Cash Flow- Year 1: Cash Flow- Year 2: Cash Flow Yr 3:

£270,000 Turnover £932,000 Turnover £1,057,000

46% Occupancy Levels 80% Occupancy Levels 90% Occupancy Levels

£3.7 Million

(Building& Land)

£50,000 (F,F&E) N/A

Outgoings:

(incl-Dep)

Outgoings:

(incl-Dep)

Outgoings:

(Incl-Dep)

£566,000 £767,000 £895,000

Financial summaryBank Loan:

£1,500,000

Time Period:

20 Years

Rate:

3.25% (Fixed)

Interest Charges:

£3,750 p/m

Loan Servicing:

£7,000 p/m

Total Payable:

£1,550,000ROI:

Repayments to start in the 4th Year at 10% (£200,000) of invested capital by way of dividends.

• Setup 4 more Care homes in Cardiff Area by next 5 years

• Enter other regions like Scotland 7 Central England

following 5 years

• Gradually improve portfolio by entering new segments

such as Nursing Homes, Dementia Care, Respite Care, Etc.

Future Growth Strategy

Questions & Answers

Thank You!!!