TIDMCTH
RNS Number : 8058R
CareTech Holdings PLC
05 March 2019
For immediate release 5 March 2019
CareTech Holdings PLC
("CareTech", "the Company" or "the Group")
AGM Statement
CareTech Holdings PLC (AIM: CTH), a pioneering provider of
specialist social care and education services in the UK, will hold
its Annual General Meeting ("AGM") at 10.00am today at the
Company's head office at Metropolitan House, 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. We have
delivered on all of our key work streams, which has been achieved
against the backdrop of the Cambian acquisition, the subsequent CMA
review and the sad passing of our Finance Director, Michael
Hill.
"Following the completion of the Cambian acquisition in October
2018, the CMA placed an interim hold separate order over the
combined business. Following its phase 1 review we were delighted
to have received unconditional clearance in mid-February. Our
integration plan is now firmly underway and we welcome all of the
Cambian employees, service users and stakeholders to the CareTech
family. We have set out our plans to improve the performance of the
core Cambian business and deliver synergies for the enlarged Group
and we remain on track to deliver these.
"Cambian shares our commitment in delivering the highest
standards of care. 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 pioneering care pathways, which now include Cambian's
specialist children's education and therapeutic fostering services,
our track record of delivering successful outcomes for service
users, and our robust balance sheet puts the Group in a strong
position to continue growing market share.
"We completed our second ground rent transaction with Alpha
Capital in January 2019 which raised GBP32.6m in cash on attractive
terms which further strengthens our balance sheet and provides
capital for investment. In that announcement, we highlighted that
the enlarged group's property portfolio was valued at GBP774m on 19
September 2018 and that our loan to value is expected to be
approximately 40% whilst the pro-forma net debt to EBITDA of the
enlarged group is expected to be under 4.0x.
"Following on from the announcements at the Year End we have
continued to improve our quality ratings whilst delivering a range
of organic initiatives and increasing the number of staff who have
progressed through training programmes.
"As is usual at this time of year, we have begun annual fee
discussions with local authorities. Initial feedback is
commensurate with our expectation of an increase in fees compared
with last year. We believe that the national living wage has a
positive impact, not only on the pay of our valued colleagues but
in our discussions with local authorities, who also recognise how
front line staff are an integral part of quality care delivery.
"We are proud to continue to support the CareTech Charitable
Foundation, an independent charity which assists vulnerable people
in the UK and overseas including our carers and families of our
service users. I look forward to providing further details of the
Foundation's work as it unfolds.
"The Board wishes to acknowledge the efforts of all of our
colleagues from both CareTech and Cambian and thank them for their
ongoing contribution to the success of our business.
"During the year ahead, CareTech will continue to integrate
Cambian and finesse 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
Gareth Dufton, Interim Group Finance Director
Buchanan (PR Adviser) 020 7466 5000
Mark Court
Sophie Wills
Stephanie Watson
Panmure Gordon (Nomad and Joint Broker) 020 7886 2500
Emma Earl
Freddy Crossley
Charles Leigh-Pemberton
WH Ireland (Joint Broker) 020 7220 1666
Adrian Hadden
Chris Viggor
About CareTech
CareTech Holdings plc is a leading provider of specialist social
care services, supporting around 4500 adults and children with a
wide range of complex needs in more than 550 residential facilities
and specialist schools around the UK and employing approximately
10,000 staff.
Committed to the highest standards of care and care governance,
CareTech provides its innovative care pathways covering adult
learning disabilities, specialist services, young people
residential services, education services, foster care and learning
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.
For further information please visit: www.caretech-uk.com
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END
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