LIME
🏰 Operates high-end mental health clinics, often in renovated German castles, charging premium rates (around €1,000/night).
📈 Exhibits strong operating leverage, achieving break-even at ~50% capacity and currently operating near 80%, indicating high profitability.
🚀 Pursues a clear growth strategy by reinvesting cash flow to expand capacity, aiming to grow from 3 to 5 clinics soon, potentially doubling capacity.
@Academiadeinversion:
“It’s a German clinic company called Limes Schlosskliniken. It focuses on mental health clinics, but niche ones, charging nearly €1,000 a night, resembling luxury hotels. These funds allow for extensive resources in patient treatment, typically long-term stays of about 8 weeks for issues like depression, addictions, or post-COVID syndrome. They face little competition, as most rivals are single-family operations. Limes’ CEO, Dr. Frank, reinvests profits intelligently. The model is similar to a hotel’s: high fixed costs, break-even around 50% capacity, and significant profit margins above that (operational leverage). Dr. Frank reduced the time to reach break-even from 2 years for the first clinic to 6 months for the second. They lease large castles, often for 25 years, with owners (German Old Money) frequently handling renovations to secure rental income. Clinics become operational within 6-12 months. Current average capacity across three clinics is ~80%, making it a cash machine. They plan to expand from 3 to 5 clinics by mid-2025, nearly doubling capacity from ~200 to 398 beds. Even with occupancy dropping initially to 60-65%, the business model remains robust and stable. Dr. Frank initially self-funded and now owns three-quarters of the ~€100M market cap company. A key risk is succession planning, given the CEO’s age. The business has two parts: automated clinic operations (managed by Dr. Borol) and real estate identification/development for new clinics.”
Watch the exact part of the video where @Academiadeinversion talks about LIMES Schlosskliniken AG here:
Watch the video on YouTube
Read more articles analyzing LIMES Schlosskliniken AG (LIME) at the provided link. LIME stock.
