AGM Statement

CareTech Holdings PLC

("CareTech" or the "Company")

AGM Statement

CareTech Holdings PLC (AIM: CTH), a leading UK provider of specialist social care services, is holding its Annual General Meeting at 10.00am today.

At the meeting, CareTech's Executive Chairman, Farouq Sheikh, will make the following statement:

"I am pleased to report that CareTech's trading performance in the year to date is in line with the Board's expectations. Demand for our services remains at a good level and the new schemes that we are developing are progressing well.

"As is usual at this time of year there are a number of ongoing fee discussions with local authorities. Whilst it is early in this process, initial indications are that the current fee environment is consistent with our expectations which anticipate a small positive change compared with 2013.

"CareTech purchased a business combination in August last year which involved the acquisition of two property portfolio businesses, comprising in total 29 freehold properties. The rent savings have been achieved and we have started reconfiguration work on a number of the properties.

"We then acquired EQL Solutions, a national training provider for predominantly young people, in November 2013. Its intensive employment, skills development and apprenticeship programmes provide the foundations for successful careers across many industries. EQL Solutions' services complement the support CareTech already offers to young people transitioning to adult life, to individuals returning to an ordinary life after mental illness and to disabled people who wish to live independently.

"We are extremely pleased with the acquisition of EQL Solutions. Integration during the past four months has gone well with very good progress by the team at EQL and positive support from customers and key partners such as the Skills Funding Agency.

"For some time we have felt that the ability to offer apprenticeships in care services would enhance and support many aspects of our outcomes-based approach and ultimately improve the standard of training and service delivery across the whole social care sector. As a first step, we have been exploring the opportunities to offer accredited learning experiences and apprenticeships to CareTech care staff and service users, which we expect to progress in the coming months.

"The Board's view remains that CareTech's continued development of the diversified care pathway model to provide high quality children and adult care based on value for money outcomes positions the Group favourably in the current public sector funding environment."

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