Derbyshire care provider looks to expand with syndicated loan

Left to right: Mikkel Togsverd, managing director - Heathcotes Southern Division; David Harrison - chief executive officer; and Brendan Kelly, managing director - Heathcotes Northern Division

Derbyshire-headquartered Heathcotes Group, one of the UK’s largest and fastest growing specialist residential care providers for adults with learning disabilities and mental health, has received a syndicated loan from HSBC and Yorkshire Bank to facilitate the expansion of its services across the UK.

Heathcotes focuses on providing living environments that closely resemble typical family homes, with the overall aim for residents to progress and move on to more independent living.

The new funding agreement will aide Heathcotes in responding to increasing demand from local authorities for smaller homes that are integrated into the community. Heathcotes will now be able to strengthen its presence in Birmingham and the South of England, which it expanded into in 2016 via the acquisition of two established care home providers encompassing over 50 service users. The business is also actively looking at new regions across the UK.

David Harrison, CEO at the Heathcotes Group, said: “Our business model is focused on responding to specific requirements for residential living environments, working closely with local authorities. We often have to work quickly to provide a new service and so the flexible support from HSBC and Yorkshire Bank’s is essential”.

Roger Pratt, HSBC area director for corporate banking in the East Midlands, said: “We’re thrilled to be able to support Heathcotes and enable them to provide additional living arrangements for those with bespoke needs. The business has a strong reputation for providing community-based living that acts as a stepping stone for residents to more independent living. We look forward to working with Heathcotes as they look to bring more services to the rest of the UK and provide much needed living arrangements in the community”.

The funding was arranged by relationship directors Philip Carr and Graham Brown of HSBC and Jamie Stuart of Yorkshire Bank.

Stuart said: “We are delighted to continue our support for David and his team. Heathcotes has an excellent reputation for providing much needed care in the community and we are honoured to play our part in its growth”.