Tunstall’s long-term outlook is positive but the company faces short-term challenges

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TELEHEALTHCARE company Tunstall yesterday revealed that it faced short-term challenges in the face of austerity measures and a fragile global economy.

Tunstall, based in Whitley Bridge, near Selby, develops technology which allows patients to monitor their health from the comfort of their homes, without the need for a visit from a healthcare worker.

Tunstall Healthcare Group has reported 21 per cent revenue growth in its 2013 statutory accounts. Revenue for the year ended September 30, 2013 increased to £221m, following the acquisition of Spanish monitoring provider Televida for £27.4m in January 2013, and the full-year impact of the US and Nordic acquisitions made during the previous year.

The enlarged group was successful in winning major contracts in the Castilla la Mancha region in Spain and the Barcelona municipality. In the UK, notable contract wins included telehealthcare programmes for Calderdale Council in West Yorkshire and Hampshire County Council.

Chief executive Paul Stobart, who joined the group in November 2013, said: “Tunstall is the global market leader in our space and the only vertically integrated player. I’m proud to be part of a company that makes a positive difference to the 3.6 million people we support every day.

“The long-term outlook is positive. However, with continuing Government austerity measures and a fragile global economy, the business does face challenges in the short term.

“However, those same fiscal constraints present a huge opportunity for technology enabled telecare and telehealth services which support an ageing global population.”

The group, which is owned by private equity house Charterhouse Capital Partners (CCP) paid £13.7m of interest in cash on its senior and mezzanine debt of £265m, as well as a total of £114.4m non-cash interest on long-dated shareholder loan notes and other loans.

This results in a statutory reported loss for the group of £127.8m.

Newly appointed chief financial officer Shaun Parker said that the financial position presented in the statutory accounts was typical of private equity owned businesses.

The EBITDA in the year to September 30 was £52.7m.