Temporary waiver of banking covenants

11 March 2016

Cambian Group plc

Temporary waiver of banking covenants

On 9 February 2016, the Board of Cambian Group PLC ("Cambian") announced that Cambian was entering into discussions with its lending banks to agree revised future covenants.

The Board now believes that it is likely that, in light of the ongoing finalisation of costs and the completion of its audit in respect of the financial year ended 31 December 2015, results for the year will be slightly lower than previous guidance. As a result, it is likely that Cambian will not be in compliance with its financial covenants for the period ended 31 December 2015.

Cambian has however agreed a temporary waiver with its lending banks to cover this possibility and to facilitate the continuing discussions with them, which are aimed at agreeing amendments to the existing facility, including resetting covenant levels. Cambian hopes to conclude these discussions before 26 April 2016, which is the expected date of the preliminary announcement of Cambian's results for the financial year ended 31 December 2015. Accordingly, it has been agreed that the waiver will expire on that date.

Christopher Kemball, Chairman, commented:

"Agreeing this waiver with its lending banks will allow Cambian and the lending banks to continue their constructive dialogue with a view to putting Cambian's finances on a more stable footing for the future. The Directors continue to have every confidence in Cambian's underlying business."

Enquiries:

Instinctif Partners Tel: +44 (0)20 7457 2020

Mark Garraway

James Gray

Notes to Editors

About Cambian Group plc:

The Cambian Group is one of the UK's leading specialist behavioural health service providers. Founded in 2004, it has grown to become a significant partner to the UK Government. The Group's services have a specific focus on children and adults who present high severity needs with challenging behaviours and complex care requirements. Cambian employs approximately 7,000 people across a portfolio of over 300 purpose-designed facilities and 10 fostering offices located in England and Wales.