Southern Cross finance chief to leave; cuts forecast

Source: Healthcare Digital

Date :30/06/2008 09:31:23

Southern Cross Healthcare Group Plc, the UK's largest care-home operator, said on Monday, June 30, Finance Director Jason Lock was leaving with immediate effect and would be replaced by Richard Midmer.

The announcement follows a profit warning by Southern Cross.

In a trading update this morning, the Darlington-based Group said it expected full-year core earnings for the year ending September 30 to be below market forecasts, as a result of weaker-than-expected performance at the Active Care unit.

Southern Cross said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were unlikely to exceed £80million pounds for the year, against £66.8million the year before.

This news wiped around two thirds off its stock market value.

Shares in Southern Cross had slumped by 67.2 percent to 103-1/4 p by 0732 GMT, valuing the company at around £194million.