The economic downturn prevented Kingsley Healthcare from expanding, but support from Santander allowed growth. Santander provided loans that enabled Kingsley to double sites and enter specialist dementia and disability care. Santander's expertise in the sector helped Kingsley expand successfully and establish expertise in niche areas of care. Kingsley has grown from £17M to £20-30M turnover with Santander's long-term partnership.

1. The economic downturn was preventing Kingsley Healthcare from reaching its growth potential. But
when Santander offered financial support and mentoring, the company not only flourished but also
branched out and expanded into a specialist market.
Kingsley Healthcare launched in 1999 with a single care home near the
Suffolk coast. The company has since not only established a total of 23
care homes across the UK, but also developed specialisms in the fields
of dementia and learning disabilities.
The Group’s founder and CEO Daya Thayan worked in the hotel
business for 15 years before identifying a niche in the care industry
for homes that were more like hotels or residents’ own homes. “I was
able to tap into parts of the hospitality experience and change the
way the care homes worked,” says Daya. “In a care home, people have
breakfast at a particular time, and will do activities at a particular
time. In hotels you don’t do that. You can choose what you want to
do and that flexibility was brought into Kingsley Healthcare.”
The crisis hits
Daya’s plans for Kingsley Healthcare looked set to launch until the
financial crisis hit and the banks were forced to limit their lending
for expansion. Daya suddenly found his company’s growth prospects
looking less than promising.
Daya approached several other banks, all of whom insisted he move
his business banking again and restructure the company according to
their recommendations. But this was not what Daya had in mind. “Our
business plan was to target the affluent marketplaces in East Anglia,
and to concentrate on buying existing care homes with the potential
for expansion rather than go for new and purpose-built homes that
the other banks suggested.” He adds, “We wanted to work with
somebody who was a sector specialist, somebody who understands
the healthcare sector.”
Breaking the banking mould
Upon their initial meeting, Santander Relationship Director Dasos
Kirtsides recalls Daya’s surprise when it became clear that Santander
was more interested in providing solutions over the long-term rather
than pressuring him to migrate his entire banking processes straight
away. “We’re about establishing a relationship,” says Dasos. “It wasn’t
about the bank just trying to do a deal and move onto the next one.”
Santander worked with Daya to find the right growth solution for
Kingsley Healthcare and the company initially received a five-year
business loan, most of which was to refinance the company’s existing
debt, while the rest went towards a group working capital facility and
extending two dementia homes.
“We understand healthcare. So the
conversations over the past seven to eight
months were about Daya telling us what he
was going to do with his business and using
us, if anything, as a guide. He was talking to
me as though I was part of his business.”
Dasos Kirtsides, Relationship Director, Santander
CASE STUDY
BUILDING A FUTURE IN
SPECIALIST CARE HOMES
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Whatabankshouldbe
We knew Dasos and his team had
tremendous insight across the
healthcare sector. This proved
invaluable when we wanted to
expand and concentrate on care for
people with learning disabilities.
Daya Thayan, CEO, Kingsley Healthcare

2. Entering a specialist market
Time passed and the banking relationship between Kingsley Healthcare
and Santander deepened. As well as providing Bacs facilities (via the
bank’s Domestic Payments and Receipts), Asset Finance and Day-to-
Day Banking, Santander spoke to Daya about his planned expansion
into the specialist sectors. “We knew Dasos and his team had
tremendous insight across the healthcare sector.
This proved invaluable when we wanted to expand and concentrate
on care for people with learning disabilities,” says Daya. “We had a
long discussion about our existing portfolio, where we operate, and
how we could build our resources going forward, and how Santander
could help us.” This discussion resulted in further funding, which was
used to purchase a new purpose-built specialist dementia care home
in Cheshire, as well as the development of a new learning disability
unit at an existing site. The new extensions for both the dementia care
home and the learning disability unit achieved 100% occupancy shortly
after construction.
As well as providing the finance and support to help Kingsley
Healthcare expand in the specialist learning disabilities market,
Santander also drew upon their overall experience in the Care Homes
sector to help the company develop their market knowledge, as Daya
explains. “Santander understood the mechanics of the market, and
were able to tell us what the industry and market trends were, and how
we should create a best-in-class operation for that particular niche.”
A successful relationship
Daya’s current plans for Kingsley Healthcare involve continuing both
the company’s growth and developing its specialist care offerings. He
also plans to acquire three to five older, extendible properties over
the next few years. Santander has already structured Daya’s funding
package to provide enough cashflow to maintain his entire portfolio of
properties for the foreseeable future.
Since receiving its first Santander funding package, Kingsley
Healthcare has not only taken the first steps in achieving its growth
plans, but also futureproofed those gains. Dasos believes this is largely
down to Santander prioritising and tailoring a facility to suit Daya’s
needs. “[Daya] was using us for ideas on how to enhance the business
and grow it rather than us telling him what he was doing wrong and
what he should change.”
“Santander and Dasos and his team were absolutely brilliant,” says
Daya. “They understood our needs. They understood our existing
operation. They were very supportive of our efforts in building a team,
and they wanted to help us grow and be part of our team.” He adds,
“We have a great relationship and a great dialogue. We have complete
transparency, and we have great faith in the way that they have helped
us, and the programme that we have to take this forward.”
“Santander understood the mechanics of the market,
and were able to tell us what the industry and market
trends were, and how we should create a best-in-class
operation for that particular niche.”
Daya Thayan, CEO, Kingsley Healthcare
Company turnover: £20-30 million
Sector: Care Homes
Kingsley Healthcare runs 23 care homes across the UK. It
has a unique service-led approach to care, with properties
more like the residents’ own homes.
The company wanted to double the size of two care homes
and increase their capacity for learning disability care,
but their incumbent bank had to limit its funds due to the
financial crisis.
Santander initially provided a five-year Business Loan to
refinance existing debt and extend the two properties.
Santander later provided Bacs facilities, Asset Finance,
and Day-to-Day Banking, all of which helped the company
expand into specialist care for dementia patients, as well as
younger people with learning difficulties.
Santander had specialist knowledge of the care homes
sector and was also interested in establishing a long-term
relationship with the client.
Kingsley Healthcare has increased turnover from £17 million
to over £20 million and has successfully expanded their
market by catering for more specialist care.
In brief
Solutions delivered:
Business Loan
Domestic Payments Receipts
Asset Finance
Day-to-Day Banking
All lending is subject to status.
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