18th Apr 2008 09:30
CareTech Holdings PLC18 April 2008 For Immediate Release 18 April 2008 CareTech Holdings PLC Trading update CareTech Holdings PLC (AIM: CTH) ('CareTech' or 'Group'), a leading provider of residential care services for adults with learning disabilities, is holding its Annual General Meeting at 9.30am today. At the meeting, Farouq Sheikh, Executive Chairman will make the following trading update: Trading update Trading in the first half of the financial year was in line with expectations and reflected continuing progress as the Group benefits from the investments in capacity made in the second half of 2007. The acquisitions of Counticare and One-Step which were made during 2007 have now been fully integrated into the regional structure introduced last year. This structure is working well to provide greater scalability and the Directors believe that further organic and acquisitive growth can be readily absorbed in line with the Group's strategy. During the first half of the year CareTech increased capacity by a further 48 beds through organic initiatives and now supports a total of 1,077 clients by way of residential and supported living services. These developments include the expansion of services into Milton Keynes and Leicester, both of which are new to CareTech and where initial discussions with local care commissioners indicate significant opportunities for service expansion. As reported in December 2007, the Group has continued to broaden its range of services into supported living. The strategy is to continue to grow these services and I am pleased to report a further 25 places have been added during the first six months of this financial year. Further growth in this service area will form a part of our development strategy for the remainder of the year and beyond. Occupancy in established services is currently running at 95% The pipeline of development opportunities remains strong and we continue to actively evaluate those which the Directors believe to be capable of enhancing shareholder value. I am pleased to confirm that we have agreed terms for increased loan facilities with Royal Bank of Scotland to finance further organic and acquisitive growth. The Board believes that the securing of these new facilities, on terms which it believes to be attractive, is testament to the quality of CareTech's business model. We will confirm to shareholders when this matter has been concluded. The Board of CareTech is confident of the Group's prospects and looks forward to reporting further progress during the second half of this financial year. For further information, please contact: CareTech Holdings PLC 01707 652 053Farouq Sheikh, Executive ChairmanDavid Spink, Finance Director Brewin Dolphin Investment Banking 0845 270 8600Matt DaviesSean Wyndham-Quin Buchanan Communications 020 7466 5000Diane StewartJames Strong ENDS This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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