For immediate release 5 March 2019
CareTech Holdings PLC
('CareTech', 'the Company' or 'the Group')
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 £32.6m 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 £774m 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 monthsahead 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
Panmure Gordon (Nomad and Joint Broker)020 7886 2500
WH Ireland (Joint Broker)020 7220 1666
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