6 Mar 2018 07:00
For immediate release 6 March 2018
CareTech Holdings PLC
("CareTech", "the Company" or "the Group")
AGM Statement
CareTech Holdings PLC (AIM: CTH), a pioneering provider of specialist social care services in the UK, will hold its Annual General Meeting ("AGM") at 10.00am today at the Company's head office in Potters Bar, Hertfordshire.
At the meeting, CareTech's Executive Chairman, Farouq Sheikh, will make the following statement:
"I am pleased to report that CareTech's trading performance in the year to date is in line with the Board's expectations.
"Our commitment to the highest standards of care and our strategy of working with care commissioners to deliver innovative services mean that we continue to be well positioned within our industry. We benefit from favourable demographics underpinned by the growth in outsourcing to the private sector and from the increasingly stringent regulatory environment, which is driving consolidation in a fragmented market. Our innovative Care Pathways validating the outcomes for our Service Users together with our strong balance sheet puts the Group in a strong position to continue growing market share.
"Following last year's AGM we raised £39 million before expenses and in June 2017 acquired Selborne Care for £16.9 million. This acquisition, which included freehold properties valued at £12.4 million, adds geography and further growth opportunities to our Adult services. Selborne Care continues to trade in line with the Board's expectations. In addition, the Group has accelerated organic initiatives including property purchases and reconfigurations. In June 2017 we acquired Beacon Reach, a children's residential and education facility near Preston for £4m, a substantial education and residential facility for ROC NW, which recently won the Laing and Buisson 2017 Award in Social Care for Children's Services. I am pleased that the facility opened ahead of plan in August 2017 and also that in early 2018 it was awarded an "Outstanding" rating by Ofsted. These are great achievements by the operational team involved and I am grateful for their hard work. As well as this investment several other property purchases have been completed for the Children's Services Division for circa £5 million and these are becoming operational during the course of 2018.
"We continue to seek and evaluate further potential acquisitions and are confident that the remainder of the monies raised will be deployed in a timely manner and on earnings enhancing businesses or projects.
"As is usual at this time of year, we have begun annual fee discussions with local authorities. Initial indications from these discussions are compatible with our expectation of an increase in fees compared with last year.
"We were proud to have formed the CareTech Charitable Foundation last year as the first corporate foundation of its type in the UK social care sector. The Foundation is an independent charity with ambitious plans to help vulnerable people in the UK and overseas. I am very pleased that the Foundation had its official launch at the Palace of Westminster in February 2018 where it announced three partnership, grant funded, ground-breaking projects with Barnados, Skills for Care and British Asian Trust. I look forward to providing further details of the Foundation's work as it unfolds.
"During the year ahead, CareTech will continue to develop its care pathway model, provide high quality care for children and adults and deliver value for money for care commissioners. The Company's commitment to this strategy gives the Board confidence in the months ahead and beyond."
For further information, please contact:
CareTech Holdings PLC 01707 601800
Farouq Sheikh, Executive Chairman
Michael Hill, Group Finance Director
Buchanan (PR Adviser) 020 7466 5000
Mark Court
Sophie Wills
Stephanie Watson
Panmure Gordon (Nomad and Joint Broker) 020 7886 2500
Freddy Crossley
Peter Steel
Charles Leigh-Pemberton
WH Ireland (Joint Broker) 020 7220 1666
Adrian Hadden
Jessica Cave
Alex Bond
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
About CareTech
CareTech Holdings plc is a leading provider of specialist social care services, supporting adults and children with a wide range of complex needs in more than 260 specialist services around the UK.
Committed to the highest standards of care and care governance, CareTech provides its innovative care pathways through five divisions covering adult learning disabilities, specialist services, young people residential services, foster care and learning services which come under the two outcome-based sectors of Adult Services and Young People Services.
CareTech, which was founded in 1993, began trading on the AIM market of the London Stock Exchange in October 2005 under the ticker symbol CTH. Its property portfolio comprises more than 200 properties.
For further information please visit: www.caretech-uk.com