THE failure to secure planning permission for its planned Rainhill facility has seen Raphael Heath Care record a hefty £2.7m loss.

The women’s mental health service provider had wanted to create a 45-bed secure facility at Briars Hey, Rainhill, but a public enquiry in September, 2009, rejected the plans.

This resulted in a £3.97m writedown with the property, which houses a medium secure unit, now valued at £2.95m. The directors are considering its options for its head office site and have not ruled out a sale.

Operationally, Raphael has continued to strengthen its performance. Turnover in the year to March rose 6% to £7.39m, building on 29% growth a year earlier.

Its operating profit improved 16% to £1.68m, before net interest charges of £391,000.

However the property writedown meant it recorded a pre-tax loss of £2.67m compared with a £950,000 profit a year earlier.

Raphael said it was “satisfied with the positive trends in relation to patient occupancy levels”.

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

It operates a 46-bed unit in Newark, Nottinghamshire, and Raphael is a preferred provider to the East and West Midlands Commissioning teams.

The site benefited from a £750,000 investment which increased the number of rehabilitation beds from seven to 12. A further extension is scheduled to be completed by the end of this year which will result in the property being revalued in the current financial year.

The company, which employs more than 150 people, was set up in 2004 by chairman John Lamb and chief executive Arthur Robinson.