CareTech provides positive full-year update

CareTech has provided a positive trading update for the full year ending September 30th, stating that "trading for the full year will be in line with its expectations".

Consensus estimates for the year ended September 30th are for pre-tax profits of £16.74m on turnover of £116.56m.

Earlier this year the care homes company, with a market cap of approximately £91.2m, successfully refinanced £160m of debt that was due to mature next year. The new facility expires in January 2017 and the average interest rate for the new facility is fixed at 4.5%.

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Net debt at the period end was £131.2m (September 30th 2011: £127.3m).

It stated that during the financial year capacity at its homes increased by 110 places to 2,166. Occupancy levels in the mature estate were maintained at 92% and the blended occupancy remains around 86%.

Farouq Sheikh, Executive Chairman commented: "The group has had a strong trading performance and successful refinancing. It is encouraging to see such a high level of commitment from both our existing club of banks and a new club member. This is a testament to the strength of our business and I thank the banks for their support. Recent corporate activity is an indication of increased confidence in the fundamental dynamics of the sector, and in particular the funding environment. I am pleased to see that the new schemes have all opened and in the new financial year look forward to our teams engaging further with commissioners to replicate these successes in other areas."

CareTech plans to announce its preliminary results for the year ended September 30th 2012 on December 6th 2012.

CM