Care and Support Provider

Empowering care provision with financial resilience and efficiency

Altair & ATFS joined forces to deliver increased profit margins for a care and support organisation.

About the project

A care and support client faced significant profit margin challenges in a sector already constrained by tight margins exacerbated by increased inflations and interest costs. The teams at Altair Treasury and Finance Solutions (ATFS) began by assessing the organization’s assets and management structure, revealing varying delivery margins and identifying contracts needing review. We also scrutinized the treasury portfolio and covenants to align the interest covenant with the organisation’s needs and lessen the interest cost burden. This holistic approach allowed the organization to mitigate portfolio risks and improve ongoing financial performance.

Results

Revisiting the contracts in place resulted in a £1m increase in turnover.  In addition, the revisit to the treasury portfolio saw a reduction in interest costs of c£1m per annum, this aiding the gross and net profit margin of the organisation.

The treasury review also ensured investments held had lower levels of volatility.  With renegotiated covenants ensuring ongoing protection and fully tested against the stresses provided by the organisation prior to conclusion.  This effort fostered a financially robust future, enhancing the provision of care and support to those in need.

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