Southern Cross continues rapid expansion

Mar 18 2008 by Andrew Mernin, The Journal

THE nation’s biggest care home operator Southern Cross continued its rapid expansion yesterday by adding 257 beds to its portfolio through acquisitions.

The Darlington-based company has acquired a 62-bed care home on Merseyside alongside the leases of three other homes with 195 beds.

Meanwhile the firm will see fee rates for its homes in Scotland – which make up 15% of the business – climb by 4.38% after Scottish authorities announced the settlement for care home fees for 2008 /09. Discussions with local authorities in other parts of the UK are currently ongoing and an announcement on any rate rises will be made in May.

Since last October, Southern Cross has increased its stable of beds by 8.1% to 37,080 across 727 care homes.

The company provides care services for most of the local authorities in the UK which, together with the NHS, represent over 70% of the company’s revenues. Shares climbed 0.5 points to close at 351.75p.