AGM Statement

CareTech Holdings PLC

("CareTech" or the "Company")

AGM Statement

CareTech Holdings PLC (AIM: CTH), a pioneering provider of specialist social care services in the UK, will hold 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 very encouraging level, and we are excited by the growth opportunities available to the Company. We operate in a fragmented and growing market where outsourcing to the private sector is rising and where the increasingly stringent regulatory environment is driving consolidation.

"As is usual at this time of year there are a number of ongoing fee discussions with local authorities, this time including the Living Wage which starts from 1 April 2016. Whilst it is early in this process, initial indications are that the current fee environment is consistent with our expectations, which anticipate a positive change compared with 2015.

"CareTech's commitment to the highest standards of care, and our strategy of working with care commissioners to deliver innovative services, mean that we are well positioned to benefit from the opportunities arising in the growth of the social care industry.

"Since the last AGM we have spent the funds raised from the share placement in February 2015 on earnings enhancing acquisitions which are performing in line with expectations. We have recently announced a ground rent transaction that raised £30m which we are planning to utilise on further acquisitions in the care sector.

"The Board's view remains that CareTech's continued development of its care pathway model to provide high quality care for children and adults, and to deliver value for money outcomes, positions the Group favourably in the public sector funding environment."

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About CareTech

CareTech Holdings plc is a leading provider of specialist social care services, supporting adults and children with a wide range of complex needs in more than 250 specialist services around the UK.

Committed to the highest standards of care and care governance, CareTech provides its innovative care pathways through five divisions covering adult learning disabilities, mental health, young people residential services, foster care and learning services.

CareTech, which was founded in 1993, began trading on the AIM market of the London Stock Exchange in October 2005 under the ticker symbol CTH. Its freehold portfolio comprises more than 160 properties.

For further information please visit: www.caretech-uk.com.