August Equity LLP (“August Equity”) portfolio company, Lifeways Community Care (“Lifeways Group”), was last night announced as the number one business in LAING’S HEALTHCARE 20 2011. An extract of the report follows:
Lifeways Group – Number One LAING’S HEALTHCARE 20 2011
With offices throughout Britain, over 5,000 employees and contracts with more than 100 local authorities and primary care trusts, Lifeways provides supported living and community based services for over 2,250 people with complex care needs, including learning disabilities and autism.
Established 16 years ago, it was in the early 2000s when the company came to prominence, initially under the ownership of Japanese investment bank Nomura and then in 2007 when August Equity backed a buyout for an undisclosed sum and installed Paul Marriner, a qualified nurse, as chief executive. In his first full year in the role Mr Marriner succeeded in boosting turnover by 10% and bringing about a tripling in post-tax profits.
Under the guidance of August Equity EBITDA has grown by 77% a year to over £10.9 million in 2011.
Organically this growth has been achieved through successful tender wins backed by tighter management systems rolled out as part of a £1 million internal investment programme. The company has also acquired ten smaller businesses in the past four years and continues to pursue its acquisition strategy.
Indeed, during the judging sessions for LAING’S HEALTHCARE 20, Lifeways confirmed the bolt on acquisition of two businesses – Independent Living Alliance and Natural Networks Limited – in deals which, with the ongoing support of its private equity partner August Equity, further boost its presence in the specialist care market and give it yet more scope to expand into new socialisms. It is this fierce hunger and progressive fever which caught the eyes of our judges.
Government austerity measures have impacted all aspects of the care sector, but by working in partnership with commissioners Lifeways is proud to have pro-actively delivered over £1 million of savings across the business. As a result, the provider claims, there has been an increase in sales growth organically within area offices which has led to a net increase in sales and enhancement of margins over the past 12 months. This determination to support commissioners as well as end users, is an important ingredient in the business DNA at Lifeways, and is indeed a major contributing factor to it being heralded as the lead name in the inaugural LAING’S HEALTHCARE 20.
Over the past 12 months, a time in which commissioners have experienced much turbulence, Lifeways has introduced a range of innovative working practices, including:
• The introduction of new outcome focused support plans and associated tools enabled the organisation to demonstrate increased independence and reduced dependency on paid support.
• Pro-active deconstruction of the block contract to deliver Core-and-Flexi services to over 100 individuals, incorporating elements of individual budgets, while delivering cost effective solutions to commissioners around core and shared support hours.
• Appointment of two assistive technology leads for the organisation to enable customers to make the most of the available technology options, develop models of funding through the effective use of individual budgets and pass on benefits to commissioners through reductions of paid formalised support.
On top of distributing some 500 mini-laptops to team leaders, Lifeways has also recently completed work on a new multi-media training suite, providing staff with a series of options in which they can complete their training, with e-learning forming a crucial element to the programme offered to both new and existing staff. As well as expanding the opportunities for staff to develop their skills, knowledge and understanding across a broader range of mandatory and professional development modules over time, the facility enables Lifeways to regularly test staff members’ on-going understanding of key elements of their induction training throughout their career with the organisation.
The company-wide initiative Voice means that staff representatives meet with senior management on a quarterly basis to put their views across, with Mr Marriner chairing these sessions on a six monthly basis. While the Lifeways has Talent programme has proved popular with staff and users alike as a way in which to recognise the unsung heroes amongst the workforce.
What the judges said…
“This company has grown quickly over the last three years to become a significant provider of community and residential services for challenged adults particularly in the field of learning disabilities and chronic mental health. It provides a wide range of services and is particularly focused on rehabilitation and re-homing of their clients.
Backed by August Equity, Lifeways has recently made several significant acquisitions that have widened its range of services and increased significantly the number of therapy options it can offer.
It is very well placed to respond to the ever changing need of the population and community.”