Infotech Orpea’s net profit drops 60% in 2021

Orpea’s net profit drops 60% in 2021

The private group Orpea, manager of Ehpad in turmoil since the release in January of the investigative book “Les Fossoyeurs”, announced on Friday May 13 that it had signed an agreement with its banks to ensure its financing in the face of the uncertainties weighing on the company, after a nearly 60% plunge in its annual net profit.

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This agreement is part of “of an amicable conciliation procedure”to prevent difficulties, open to the Commercial Court of Nanterre, the group said in a press release.

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“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. »

A provision of 83 million euros

For the current year, Orpea expects “to face exceptional charges related to the management of the crisis and its consequences”. The manager also expects its profitability to be affected by the rise in inflation which is impacting “energy costs and wages in some countries”.

The group says “confident about the growth dynamic” of its 2022 revenue but has not published any forecast figures. In the first quarter, sales increased by 9% to 1.12 billion euros.

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Last year, its net profit fell by 59.3% compared to 2020, to 65.2 million euros, due in particular to a provision of 83 million euros “for risks and charges relating to estimated risks for the years 2017-2021 following administrative investigations” which the group has been subjected to. In this context, it plans not to pay a dividend.

The state sued

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 independent journalist denounced in particular the mistreatment of residents and the misuse of public funds.

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A report commissioned in the process by the government highlighted serious dysfunctions in early April. The State lodged a complaint and demanded the restitution of public grants allegedly diverted from their purposes.

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.

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