WOMEN’S mental health service provider Raphael Healthcare has announced a significant increase in its profitability.

The Rainhill-based company provides care services for women diagnosed with mental illness or personality disorders on behalf of local health authorities.

It operates one facility – the Farndon Unit, in Newark, Nottinghamshire – which opened in 2006. It provides 41 beds and is currently extending its provision to include a further five beds, which is scheduled to be completed by March.

Turnover increased 29% to £6.98m in the year to March 31, 2009, with pre-tax profits up from £287,000 to £950,000.

Raphael, which was set up in 2004 by chairman John Lamb and chief executive Arthur Robinson, said it was “satisfied” with increasing patient occupancy levels and “continued to experience excellent levels of occupancy in its second full year of trading.”

The growth was driven by securing preferred provider status for the East and West Midlands.

Raphael Healthcare is also the preferred provider for South Yorkshire and the South West peninsula.

However, the company had planning permission for a development in Rainhill turned down last January by St Helens Council.

The company is in the process of appealing against this decision, which is for a 45-bed low secure facility at Briars Hey, Rainhill.

A bridging loan of £5.6m, provided by the Bank of Ireland, in September, 2007, for the purchase of Briars Hey, has been renewed and it will be converted into a development loan if planning approval is obtained.

Raphael’s management has plans to open more units around the country.

The ambitious plans led to a £6.1m development capital injection into the business by middle-market private equity firm RJD Partners, which valued the business at £30m. The restructure resulted in the creation of a new holding company, RHC Group.

ALEX TURNER