2nd Oct 2006 07:01
Southern Cross Healthcare Grp PLC02 October 2006 Pre-Close Trading Update Monday, 2 October 2006 - Southern Cross Healthcare Group PLC (LSE: SCHE)('Southern Cross' or the 'Company'), the UK's largest care home provider, todayprovides a pre-close trading update following the end of the Company's financialyear on 1 October 2006. Since successfully completing its IPO on the London Stock Exchange in July,Southern Cross is pleased to report that trading has remained in line withmanagement's expectations. At IPO, the Company disclosed an occupancy rate asof 2 April 2006 of 90.7 per cent. Occupancy rates during the second half of thefinancial year exceeded this level, in line with the seasonal norm. Inaddition, the Company has seen increased occupancy at its Ashbourne business,acquired in November 2005, with levels now in line with those of the rest of theGroup. Operating costs are running in line with expectations, with the backoffice integration of Ashbourne now complete. As at the financial year end, the Company had 28,981 beds across 580 homes. On15 August 2006, the Company announced the acquisition of 270 beds in four homes,which have been included under the Southern Cross brand. In line with theCompany's strategy of focusing on the operation of nursing homes, the associatedfreeholds will be sold and subsequently leased back using the Company'scommitted landlord fund. This fund attracts competitive fixed rental yields,reflecting the high quality of the Company's covenant as a tenant and operator.During the period, the Company also opened a new development in NorthernIreland, adding a further 64 beds to the portfolio. The Company's objective remains to add at least 1,200 beds annually andmanagement continues to see opportunities to make further additions to its bedportfolio, both through the development of new and existing homes and viaacquisitions. A further £100 million line of credit has been put in place tofund this strategy, in addition to the £200 million facility already in place. The Company expects to announce its results for the financial year ended 1October 2006 on 11 December 2006. Commenting on today's announcement, Philip Scott, Chief Executive of SouthernCross, said: "The second half of the financial year is traditionally stronger and we arepleased to see increased occupancy levels during the period, both in theSouthern Cross and the Ashbourne homes. The care home sector in the UK remainsan attractive market in which we continue to see good opportunities to expandand add to our portfolio." Enquiries: Southern Cross Healthcare Group PLC +44 (0)1325 351100 Philip Scott, Chief Executive Graham Sizer, Finance Director Financial Dynamics +44 (0)20 7831 3113 David Yates Deborah Scott About Southern Cross Southern Cross is, in terms of number of beds, the largest UK provider of carehome services for the elderly and a major provider of specialist services forpeople with physical and/or learning disabilities. The Company's care homes forthe elderly operate under two distinct brands: Southern Cross Healthcare andAshbourne Senior Living. Both brands provide a range of social and personalcare services and nursing care services for elderly people with physicalfrailties and differing forms of dementia. The Company's specialist servicesoperate under the Active Care Partnerships brand and provide long-term careservices for people with physical and/or learning disabilities and for youngerpeople with complex forms of challenging behaviour. Southern Cross is focused on providing high quality care in well investedfacilities, seeking to be the home of choice in each local community in which itoperates. The Company provides care services for most of the local authoritiesin the UK which, together with the NHS, represent over circa 70% of theCompany's revenues. Its care home portfolio is largely purpose-built with ahigh percentage of single occupancy rooms and rooms with ensuite bathrooms.Occupancy levels in its core elderly segment are consistently in excess of 90%. This announcement includes statements that are, or may deemed to be, "forwardlooking statements". These forward looking statements can be identified by theuse of forward looking terminology, including the terms "believes", "estimates","plans", "projects", "anticipates", "expects", "intends", "may", "will", or "should" or, in each case, their negative or other variations or comparableterminology. These forward looking statements include matters that are nothistorical facts and include statements regarding the Company's intentions,beliefs or current expectations concerning, among other things, the Company'sresults of operations, financial condition, liquidity, prospects, growth,strategies and the outlook on the care home industry. By their nature, forwardlooking statements involve risk and uncertainty because they relate to futureevents and circumstances. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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