Bad prospects for Orpea.
In turmoil since the release of a book-investigation, the group of private nursing homes announced on Friday that it had signed an agreement with its banks to ensure its financing in the face of the uncertainties weighing on the company.
And this, after a plunge of nearly 60% of its annual net profit.
This agreement is part of "an amicable conciliation procedure", to prevent difficulties, open to the Commercial Court of Nanterre, the group said in a press release.
“This agreement with the banks responds to the current context of uncertainty weighing on Orpea, as well as closed access to the financial markets and the slowdown in the asset disposal program initially envisaged”, explained the group.
“Exceptional Charges”
For the current year, Orpea expects “to face exceptional charges related to the management of the crisis and its consequences”.
It also expects its profitability to be affected by the rise in inflation which impacts “energy costs and salaries in certain countries”.
The group says it is "confident about the growth dynamic" of its 2022 turnover but has not published any numerical forecasts.
In the first quarter, turnover increased by 9% to 1.12 billion euros.
Last year, its net profit fell by 59.3% compared to 2020 to 65.2 million euros.
A decrease which is explained in particular by a provision of 83 million euros "for risks and charges relating to the risks estimated for the years 2017-2021 following the administrative investigations" to which the group was subject.
No dividend paid
In this context, it plans not to pay a dividend.
The group has been under fire from critics since the publication at the end of January of Victor Castanet's investigative book "Les Fossoyeurs".
The journalist denounced in particular the mistreatment of residents and the misuse of public funds.
VIDEO.
Orpea scandal: "I was offered 15 million euros to stop my investigation into nursing homes"
A report commissioned by the government in the process pointed to serious dysfunctions in early April.
The State filed a complaint and demanded the restitution of public grants allegedly diverted from their purpose.
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 offences.