HSS (CIR Group): revenues at 246 million (34.7%), EBITDA rises to 28.7 million (+42.3%)

Milan, February 27 2009 – The Board of Directors of HSS-Holding Sanità e Servizi SpA (CIR Group), which met under the chairmanship of Claudio Stabon, approved the proposed financial statements forfinancial year 2008. Performance of operations During the year, HSS continued its growth trend, which in just five years of business has enabled the group to become one of the principal operators in private healthcare in Italy. The year concluded with
a significant rise in revenues (+34.7%) and EBITDA (+42.3%). In 2008 HSS consolidated its position in the Italian market, especially in the social welfare sector (with the management of residences for the non self-sufficient elderly) and in the healthcare sector (with the management of hospitals and rehabilitation centres). One of the most significant events of the year was the acquisition of the Cardinal Ferrari Centre in Fontanellato (PR), through which HSS has further strengthened its presence in the field of rehabilitation. Consolidated results In 2008, the HSS group reported consolidated revenues of 246.3 million euro, up by 34.7% from 2007 (182.9 million), thanks to the development of all areas of the business and to the new acquisitions made during the year.
The gross operating margin (EBITDA) was 28.7 million euro, up by 42.3% from 2007 (20.2 million). The consolidated net result was a negative 1.5 million euro, compared to net income of 0.3 million in the previous year. This change was due mainly to an extraordinary item, notably a provision of 2 million euro set up in relation to the value of minority shareholdings of the group, resulting from previous 2 acquisitions and considered non-strategic. These provisions were considered advisable in light of the current economic and financial environment.
The consolidated net debt of the HSS group at December 31 2008 amounted to 149.1 million euro (148.6 million at December 31 2007), against real-estate property with a carrying value of 120 million euro. The net debt figure was the result, on the one hand, of the subscription in June 2008 by CIR and
the Morgan Stanley funds (already shareholders of HSS) of a total capital increase of 40 million euro and, on the other hand, of the acquisitions and investments made during the year.
The HSS group had 3,130 employees at December 31 2008 (2,476 at December 31 2007). Activities of the HSS group The HSS group, which today manages a total of 4,917 beds, with a further 380 beds under construction, is active in three sectors:- The management of residences for the elderly, with 36 residences under management (3,690 beds in operation and another 330 under construction);- The management of hospitals and rehabilitation centres, with 6 rehabilitation centres (in Lombardy, Emilia Romagna, Trentino and Marche), 8 psychiatric rehabilitation communities (in Liguria, Piedmont and Lombardy) and 13 day hospitals, for a total of 1,107 beds in operation and 50 under construction;- The management of a hospital and of high-tech facilities in hospitals, with 7 diagnostic imagining units.

Download pdf