29th Mar 2007 07:02
CareTech Holdings PLC29 March 2007 For Immediate Release 29 March 2007 CareTech Holdings PLC AGM Statement and Pre-Close Trading Update CareTech Holdings PLC (AIM: CTH) ('CareTech' or 'Group'), a leading provider ofresidential care services for adults with a learning disability, is holding itsAnnual General Meeting at 10.00am today. At the meeting, Executive Chairman,Farouq Sheikh, will make the following statement ahead of CareTech entering intoits close period following the six months ended 31 March 2007. "Following the Group's Preliminary Results Statement in December 2006, I ampleased to report that CareTech has made a positive start to the new financialyear. Trading in the year thus far has been encouraging and we are continuing to makegood progress in implementing the growth strategy outlined at the time of theIPO. In the financial year to date, the Group has successfully increasedcapacity through further organic development and from the acquisition ofCounticare which was announced to shareholders on 16 November 2006. I am pleased to report that resident capacity has increased from 739 places atSeptember 2006 to its current level of 884 places, an increase of 20%. Since ourIPO in October 2005, resident capacity has increased by 109%. Organic development in the six months to March 2007 of 44 resident placesincludes 31 places in the Midlands, where we have increased our presence to aresident capacity of 298. We announced in our 2006 Report and Accounts the introduction of a regionalstructure which will enable the Group to achieve growth, consolidate andintegrate new services more effectively. I am pleased to confirm that theregional management teams are substantially complete and beginning to workefficiently. Through this structure, we believe we will be better placed toachieve our short to medium term aspirations of reaching a client capacity of1,500 places. I reported in December that the Group had broadened its range of servicesthrough the introduction of supported living and children's services. I ampleased to confirm that further progress has been made in this regard; in thecurrent financial year, supported living has been expanded by a further 5clients. This brings the current total to 82 clients and this will form a partof our development strategy for the remainder of the year and going forward. Last year's acquisition at Delam Care Limited introduced the provision ofchildren's services to the Group. I am pleased to report the development of twofurther services in the Midlands as we begin to leverage the expertise acquiredwith Delam. At the time of the IPO the Board undertook to keep its dividend policy underreview and I am pleased to confirm that it is our intention to introduce adividend to shareholders for the current financial year. The pipeline of development and acquisition opportunities is strong and we areactively evaluating those the Directors believe capable of enhancing shareholdervalue. The Directors anticipate that such acquisitions will be financedprincipally by existing and new bank facilities. The Board is confident of theGroup's prospects and looks forward to reporting further progress during theforthcoming year." ENDS For further information, please contact: CareTech Holdings PLC 01707 652 053 Farouq Sheikh, Executive Chairman David Spink, Finance Director Buchanan Communications 020 7466 5000 Diane Stewart/Tim Anderson/Karen Morrison Notes to editors: CareTech which was floated on the AiM in October 2005 is a leading provider ofspecialist residential care services to people with learning difficulties('PLD'). CareTech's services are provided through 133 residential care homes and5 day centres located predominantly in the South of England and the WestMidlands. Current overall capacity is 884 beds in residential services and 229places in day services. The Group is headquartered in Potters Bar. Since formation in 1993, the Group has expanded organically through winningtenders, development of new homes and by acquisition - typically of single andsmall groups of care home operations. CareTech's strategy for growth is to takeadvantage of the supply shortage for high care standard PLD places and increasethe number of beds and homes it operates through the development of the existingportfolio, the establishment of new homes and by selected acquisition in afragmented market. This information is provided by RNS The company news service from the London Stock Exchange ENDRelated Shares:
CTH.L