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. Whilst it is early in this process, initial indications are that the current fee environment is consistent with our expectations which anticipate a small but positive change compared with 2014.

"Our training programme Aspire, which we launched last year, is an enabler to ensure that CareTech staff are trained to the highest standard and given the opportunity to complete a Level 2 or Level 3 apprenticeship, is progressing well. To date, 281 of our staff have been enrolled into the programme, which seeks to empower every member of staff to deliver high quality, personalised care.

"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.

"Last week we were delighted to announce a Placing, conditional on shareholder approval, to raise £21 million before expenses. I am really pleased with the support we received from both new and existing investors in this oversubscribed fundraising. I would like to take this opportunity to welcome new investors and to thank our existing investors for their continued support. This additional capital will allow us to accelerate our growth through organic initiatives, property purchases and reconfigurations, and bolt-on acquisitions. I look forward to the approval of the Placing at today's AGM and then to investing in the business for the benefit of all stakeholders.

"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 164 properties.