Orange with media services, posted on Friday, May 13, 2022 at 2:17 pm.
This agreement, signed with its banks, “is in line with the current context of uncertainty weighing on Orpea, as well as the closed access to financial markets and the slowdown in the asset disposal program that was originally envisaged,” the group explained in a press release this Friday. may 13.
According to a press release published this Friday, May 13, Orpea has signed an agreement with its banks to secure its funding in the face of uncertainty following a nearly 60% drop in annual net income. Recall, a group of private nursing homes in the tournament since the publication of the investigative book in January.
This agreement is part “world conciliation procedure”, to prevent difficulties open before the Commercial Court of Nanterre.
This “is in line with the current context of uncertainty weighing on Orpea, as well as the closed access to financial markets and the originally envisaged slowdown in the asset disposal program,” the group explained. He plans granting a loan in the amount of 1.73 billion euros, implementation of the asset disposal plan for more than €3 billion by the end of 2025 and an additional loan of a maximum of €1.5 billion.
“I promise that we will shoot all the lessons of this crisis to restore the trust our stakeholders have always placed in us wherever the group is based,” commented Philippe Charrier, CEO of Orpea, quoted in the press release.
‘Exceptional spending’ expected this year
In the current year, Orpea expects to “face exceptional fees related to crisis management and its aftermath.” He also suggests that its profitability will be affected by rising inflation, which affects “energy costs and wages in some countries.” The group tells itself it is “confident in the growth momentum” of its revenue in 2022, but has not released any quantitative forecasts. without dividends for fiscal year 2021. In the first quarter, turnover increased by 9% to 1.12 billion euros.
Last year, its net income fell by 59.3% compared to 2020 to 65.2 million euros, in particular due to a reserve of 83 million euros “for risks and fees associated with assumed risks for 2017-2021 years after administrative investigations. the group was on point. And in 2020, its net income has already fallen by almost a third, because the health crisis has reduced its activity and increased operating expenses.
However, in 2021, the group’s gross operating profit (Ebitda) increased by 11% to €1.07 billion on a turnover of €4.3 billion, up 9.6%.
The band came under heavy criticism from critics following the publication of Victor Castanet’s investigative book Les Fossoyeurs in late January. The independent journalist, in particular, condemned mistreatment of residents and misuse of public funds. A government-commissioned report in early April pointed to serious violations. The state sued and demanded the restitution of government grants allegedly misused.
On the way to the “big plan of transformation”
Since the end of April, the group has been the subject of a judicial investigation opened in Nanterre on suspicion of institutional mistreatment or financial crimes. An interim report by independent firms Grant Thornton and Alvarez and Marsal, commissioned by Orpea, also found malfunctions within the group.
“Many corrective actions have already been taken,” Philippe Charrier assured. The group, for example, has created a platform for listening to families and a mediation system. “Basic transformation plan, deployed primarily in France”, designed to improve, inter alia, “the quality of support and well-being of the resident”, as well as his personnel policy.
Shares of Orpea fell 0.53% to 34.02 euros in a bull market on the Paris Stock Exchange in mid-morning. He lost more 60% of its value since the beginning of the year, realizing the worst drop in the SBF 120 index. A company with a mission.
Orpea present in 23 countries and operates over 350 institutions for dependent seniors in France.