-3x Short China Share News (SCHE)

Occupancy fell again at care home operator Southern Cross over the last three months with the average occupancy of the mature portfolio 87.5% (2008: 89.8%). Revenues in the 14 weeks to 5 July were £254.8m (2008: £245.6m) and operating profits £22.2m (2008: £24.4m). Operating margins were 31.8%, 0.2% lower than during the same period in the prior year. Occupancy for the mature portfolio increased to 88.0% at the period end from 87.8% at the start of the third quarter.'While the group is benefiting from the expected seasonal increases in occupancy, management continues to take action to address the overall shortfall. Since the end of the period, mature occupancy has continued to increase and now stands at 88.4%, as at 7 August', the statement said.In the year to date, the average occupancy of the mature portfolio was 88.4% (2008: 90.5%) and average occupancy across all homes during the year to date period was 87.7% (2008: 89.4%). The number of available beds at period end totalled 37,820 (2008: 37,270).'Occupancy and service quality improvement remain the main focus of the business. It is expected that the trend in occupancy levels for the remainder of the year will continue to follow a similar, improving pattern to last year,' the statement added.