LONDON (Alliance News) - Social care services provider CareTech Holdings PLC Wednesday said trading in the first half of its financial year was in line with its expectations and occupancy levels rose.
CareTech said trading for the six months to end-March was in line with its expectations, with 25 additional beds brought into capacity. The new beds have a higher contribution than previous beds in its portfolio and will boost margins in the future, CareTech said.
Net capacity at the end of the half was 2,052 places, down from 2,074 places a year earlier, due to the reconfiguration of its care models. In fostering, the company saw a net reduction of 18 in capacity due to changes in the number of people on its register unable to foster children currently.
Occupancy levels in its mature estate rose to 93%, from 92% at the end of its last financial year in September, while its blended occupancy rate, including mature and newer capacity, was 87%, up from 86%.
CareTech said its annual fee negotiations with local authorities are at an early stage but it anticipates that a "slightly positive" outcome will be achieved.
The company also said it has appointed John Ivers as its chief operating officer. He is the former COO of care home provider HC One and former chief execuitve of Saga Healthcare, the health arm of over-50s financial services provider Saga PLC.
Shares in CareTech were down 0.6% to 242.00 pence on Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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