10th Oct 2007 07:00
CareTech Holdings PLC10 October 2007 For immediate release 10 October 2007 CareTech Holdings PLC Trading Update CareTech Holdings PLC, (LSE:CTH) ('CareTech' or 'the Company' or 'the Group') aleading provider of residential care services for people with a learningdisability issues the following update on trading. CareTech is pleased to announce that trading for the year ended 30 September2007 is in line with current market expectations which were upgraded followingthe acquisition of One Step in July 2007. The Company expects to announce its preliminary results for the year ended 30September 2007 on 4 December 2007. CareTech has continued to make considerable progress during the year boththrough organic developments and through the acquisition of Counticare and OneStep (Support) Limited which were announced on 15 November 2006 and 27 July 2007respectively. CareTech's capacity has increased by 39% from 739 beds to 1,029 beds withoccupancy levels in mature services at around 94%. Organic development of 106beds includes a 7 year contract for 24 beds awarded in the West Midlands. Management focus in the second half of the year has been on the continuingorganic development of the established portfolio together with the integrationof the two acquisitions into the CareTech operational model. Considerableprogress has been made in delivering economies of scale. Commenting on the Group's progress, Farouq Sheikh Executive Chairman said: "CareTech continues to perform well with strong growth. The devolution of operational management to a regional basis has proved to be anextremely successful strategy enabling the regional management teams to sustainorganic growth, through on-going discussions with care commissioners. The residential care market remains fragmented with significant opportunity forconsolidation. CareTech has a very selective acquisition policy and this isreflected in the excellent quality of the Counticare and One-Step businessesacquired in the year. Each has integrated well from the outset; Counticareproviding a regional base for the South East and integrating smoothly with ourexisting operations in Kent. One-Step is more recent, but is performing aheadof expectations and provides an exciting opportunity to roll-out its supportedliving model across the CareTech network". CareTech Holdings PLC 01707 652053Farouq Sheikh, Executive ChairmanDavid Spink, Finance Director Buchanan Communications 020 7466 5000Tim Anderson/Diane Stewart Brewin Dolphin Securities 0845 270 8600Matt Davis/Sean Wyndham-Quinn Notes to the editors: CareTech which was floated on the AIM in October 2005 is a leading provider ofspecialist residential care services to adult people with learning difficulties('PLD'). CareTech's services are provided through 141 residential care homesand 5 day centres located predominantly in the South of England and the WestMidlands. Current overall capacity is 1,029 beds in residential services and229 places in day services. The Company is headquartered in Potters Bar. Since formation in 1993, the Company has expanded organically through winningtenders and building new homes; and by acquisition - typically asset purchasesof single site 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 ExchangeRelated Shares:
CTH.L