15th Oct 2008 07:01
15 October 2008
Trading update
&
Board Appointments
CareTech (AIM: CTH) a leading provider of residential and supported living services for people with learning disabilities issues the following trading update.
With the benefit of secure long-term income and highly visible earnings, CareTech is able to report further progress.
Trading for the year is in line with expectations and reflects continuing progress from both organic development and acquisition growth.
Enhanced bank facilities in April, together with the equity fundraising which was concluded in July have strengthened the balance sheet and provide additional capacity for further growth.
During the year, CareTech increased its capacity by a further 279 beds and now supports over 1,300 clients, by way of residential and supported living services. Of this capacity growth, 97 (35%) is attributable to organic development and 182 beds (65%) arising from the acquisitions of Beacon Care and Valeo Limited. Both acquisitions are integrating well and performing ahead of expectations. Occupancy in established services continues to run at 94% in line with previous years.
The pipeline of organic development and acquisition opportunities remains strong and CareTech continues to actively evaluate those that the Directors believe to be capable of enhancing shareholder value.
The Board remains confident of the Group's prospects in its specialist social care niche and looks forward to reporting further progress.
The Board is also pleased to announce the following appointments:-
The Board is delighted to announce the appointment of Christa Echtle as a Non-Executive Director with immediate effect. Christa, a trained psychotherapist, has considerable experience of working with high growth companies. She was previously the Chief Executive of Reed Health Group plc.
After six years as Finance Director, David Spink will be retiring in December. Prior to his departure, David will oversee the completion of the 2008 Report and Accounts, and is ensuring that a smooth transition is made to his successor, David Pugh.
David Pugh trained with KPMG and has spent 14 years in senior financial posts, most recently as Group Financial Controller at Carillion PLC. David joined CareTech during the summer and has worked closely with the Finance Director and the regional management teams in preparing the business plan for the forthcoming year. David Pugh will be appointed to the Board of CareTech at the same time that David Spink retires in December. A further announcement will be made in due course.
The Board welcomes these new appointments and wishes David Spink well with his retirement plans.
Farouq Sheikh, Executive Chairman commented:
"We are very pleased to announce that the Group is trading in line with market expectations and with the continuing growth from both organic development and acquisitions. CareTech has long term revenue streams which provide highly visible earnings. Growth opportunities remain good within the highly fragmented markets in which we operate.
"The Board believes that the new appointments will bring considerable experience and expertise to the Group and will help CareTech deliver its aspirations of being a significant provider in this niche market."
For further information, please contact:
CareTech Holdings PLC 01707 652053
Farouq Sheikh, Executive Chairman
Brewin Dolphin Investment Banking 0845 213 4730
Matt Davis
Sean Wyndham-Quin
Buchanan Communications 0207 466 5000
Tim Anderson
Isabel Podda
James Strong
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