PresCare to sell four non-core businesses – actively considering sale of aged care homes

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Last month, we reported here that the Queensland-based Not For Profit will no longer be running its newly built WRB by PresCare aged care home that it had partnered with Justin Laboo’s Catalyst REIT at Corinda, 9km west of the Brisbane CBD – today, news that some of its other assets are also up for grabs.

Advisory firm McGrathNicol confirmed to us that PresCare has engaged them to provide strategic, financial modelling and transaction advisory services.

“As part of this process PresCare has agreed the sale of four non-core businesses – Surecom, Walk On Wheels, Mobility Wholesale Distributors and Connect2Health,” they said in a statement.

These businesses provide information technology services, mobility aids and allied health services.

“With McGrathNicol’s assistance, PresCare is reviewing the position of its other business operations, including its aged care facilities, and is actively considering options for the sale of these businesses.”

We understand a number of providers have already expressed an interest in buying PresCare’s home care and community services.

Established in 1929, PresCare – which is also being sued for $2.36 million by former CEO Greg Skelton –has five aged care homes and three co-located retirement villages plus home care services, allied health and respite across Queensland.

In 2017, PresCare had joined forces with LLC operator GemLife to offer home care services to its residents and just opened their latest $30 million aged care home, Protea by PresCare in Townsville in March last year.

However, their last financial report for 2019 recorded a $12.6 million loss – following on from a $27.6 million loss in 2018.

Staff costs made up $54.5 million of their costs – 72% of their $75 million revenue.