20 April 2011 – trading update

The company has provided a trading update on the first half of its financial year, covering the six months to 31 March 2011.  Trading was in line with expectations and capacity was increased by 121 places to 1,930 with occupancy levels of around 92% in established services and 87% if facilities being developed are included.

Fee rate pressure is being experienced across the specialist social care market and this will have an impact on the full year.  Growth forecasts have been pared back, with acquisitions put on the back burner.  Nevertheless, the shares have been out of favour and the current market capitalisation is just £72m.  Although it may require patience to achieve returns, we believe the shares are GOOD VALUE.