For Immediate Release

21 October 2011

CareTech Holdings PLC

("CareTech" or "the Group" or "the Company")

Trading update

Ahead of the publication of its results for the year ended 30th September 2011 the board of Caretech is pleased to provide shareholders with the following update on trading. The Group expects to announce its preliminary results for the year ended 30 September 2011 on 8 December 2011.

During the financial year capacity was increased by 247 places to 2,056. Occupancy levels in the mature estate have been maintained at 92% and remain around 87% including facilities being developed.

The past year to 30th September has been characterised by complex political and social conditions resulting in a degree of realignment for social care. This, together with a more sophisticated approach to local authority cost control has created new opportunities as well as challenges for providers.

The board believes that CareTech's unique profile, its high quality care provision and comprehensive range of services are designed to meet the complex needs of its clients which is a compelling strength in this changing environment.

In the opinion of the board, continuing investment in organic growth initiatives will position the Company well in the medium and longer term.   

The board is therefore pleased to report that it anticipates that trading for the full year will be in line with management expectations. 

Net debt at the period end amounted to £127.7m (2010: £115.0m).

Farouq Sheikh, Executive Chairman commented:

"We are pleased that trading in the second half of the financial year is in line with Directors expectations and that the Directors continue to realise opportunities for growth in this evolving social care market.

 Ends

For further information please contact:

CareTech Holdings PLC

01707 601 800

Farouq Sheikh, Executive Chairman


Michael Hill, Group Finance Director


Brewin Dolphin

0845 213 4730

Matt Davis


Sean Wyndham-Quin


Buchanan           

0207 466 5000

Diane Stewart                                                

Tim Anderson