-3x Short China Regulatory News (SCHE)

17 Mar 2008 07:01

Southern Cross Healthcare Grp PLC17 March 2008 Consolidation update and 2008/09 Scottish Local Authority fee settlement Monday, 17 March 2008 - Southern Cross Healthcare Group PLC (LSE: SCHE)('Southern Cross' or the 'Company'), the UK's largest care home operator, todayannounces a further growth in beds, a significant freehold sale and provides anupdate to the market on the 2008/09 Local Authority fee rate settlement inScotland. Acquisition of four high quality care homes and divestment of freehold interest Southern Cross announces today that it has acquired the leases of three modern,purpose built care homes, totalling 195 beds, in England, for a nominalconsideration. A brand new 62 bed purpose built home in the Wirral has also beenacquired and is due to open next week. Since 1 October 2007, the Company has increased total registered beds by 8.1%.Southern Cross now operates 37,080 beds in 727 care homes and provides 245daycare places. The Company also announces that it has divested the freehold interest in a largecare home in Harrogate for £14.3 million at an initial yield of 5.75%, againretaining the operating business for a nominal consideration. Annual fee reviews On 13 March 2008, the Convention of Scottish Local Authorities ("COSLA") and theproviders' representative body, Scottish Care, announced the settlement for carehome fees for 2008/09 in Scotland. The fee rates received by Southern Cross forthe 5,548 beds it currently operates in Scotland, representing 15% of theSouthern Cross portfolio, will increase by 4.38% from 1 April 2008. Discussions with Local Authorities in the rest of the UK are ongoing and theCompany will provide an update on average fee increases with its interim resultsin May. Commenting on today's announcement, Bill Colvin, CEO of Southern Cross, said: "We continue to add to our portfolio by the acquisition and development of highquality care homes throughout the UK that meet our criteria. We are encouragedby the fee rate increases that have been achieved in Scotland, a country whichcontinues to be a focus area for our growth." Enquiries: Southern Cross Healthcare Group PLC +44 (0)1325 351100Bill Colvin, Chief ExecutiveJason Lock, Finance Director Financial Dynamics +44 (0)20 7831 3113David Yates/ Deborah Scott/ Emma Thompson About Southern Cross Southern Cross is, in terms of number of beds, the largest UK provider of carehome services for the elderly and a major provider of specialist services forpeople with physical and/or learning disabilities. The Company's care homes forthe elderly operate under two distinct brands: Southern Cross Healthcare andAshbourne Senior Living. Both brands provide a range of social and personalcare services and nursing care services for elderly people with physicalfrailties and differing forms of dementia. The Company's specialist servicesoperate under the Active Care Partnerships brand and provide long-term careservices for people with physical and/or learning disabilities and for youngerpeople with complex forms of challenging behaviour. Southern Cross is focused on providing high quality care in well investedfacilities, seeking to be the home of choice in each local community in which itoperates. The Company provides care services for most of the local authoritiesin the UK which, together with the NHS, represent over circa 70% of theCompany's revenues. Its care home portfolio is largely purpose-built with ahigh percentage of single occupancy rooms and rooms with ensuite bathrooms.Occupancy levels in its core elderly segment are consistently in excess of 90%. This announcement includes statements that are, or may deemed to be, "forwardlooking statements". These forward looking statements can be identified by theuse of forward looking terminology, including the terms "believes", "estimates","plans", "projects", "anticipates", "expects", "intends", "may", "will", or "should" or, in each case, their negative or other variations or comparableterminology. These forward looking statements include matters that are nothistorical facts and include statements regarding the Company's intentions,beliefs or current expectations concerning, among other things, the Company'sresults of operations, financial condition, liquidity, prospects, growth,strategies and the outlook on the care home industry. By their nature, forwardlooking statements involve risk and uncertainty because they relate to futureevents and circumstances. This information is provided by RNS The company news service from the London Stock Exchange