TIDMNSR
RNS Number : 5384R
Nestor Healthcare Group PLC
01 May 2009
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01 May 2009
Nestor Healthcare Group plc
Interim Management Statement
Nestor Healthcare Group plc (the "Group") announces its Interim Management
Statement covering the period from 31 December 2008 (the last year end) to date.
Financial performance
The preliminary announcement of the Group's results for the year ended 31
December 2008 was released on 10 March 2009. Operating and financial performance
since then have remained in line with the directors' expectations.
Our Social Care businesses continue to perform well with the attention to detail
employed by management delivering good returns. Certain Local Authorities are
cutting back on some of the more basic services but volumes in Goldsborough /
Medico are month-on-month showing growth. There has been a notable increase in
applications from people seeking care work, which is attributed to the wider
employment conditions; however the vocational nature of care work means our
recruitment process must be robust to ensure that our quality standards, as
independently audited, are maintained. Our two private homecare businesses,
Country Cousins and Patricia White's continue to deliver excellent
returns.
In Primary Care the day-to-day operations of the business continue to provide an
excellent service under the existing contract arrangements. In our preliminary
announcement we identified a number of these contracts requiring renewal before
the end of the year. The majority of these contracts have now been extended,
typically for an additional twelve-month period and we are in negotiation for
the extension of the remainder. Plans are in hand for a successful launch of the
new business won under the Extended Access Programme with five GP practices and
walk-in centres due to be opened in the coming months. We continue to be very
active with tenders being prepared for out-of-hours business, additional "Darzi"
practices and for services to the police and prison services.
Financial position
Net borrowings as at 22 April 2009 were GBP17.8m, which compares to the last
published figure of GBP19.0m as at 31 December 2008. In the period under review
the Group has made planned deficit reduction payments of GBP1.2m into our
existing defined benefit pension schemes as well as paying deferred
consideration of GBP0.2m in respect of acquisitions completed in 2007.
As noted in the Annual Report and Accounts for 2008 (published on 1 April 2009),
the committed banking facility available to the Group expires in December 2009.
The directors remain confident that committed banking facilities can be renewed
no later than that date on terms which are overall acceptable to the Group.
Chief Executive
John Rennocks continues to hold the position of part-time Chief Executive in
addition to his continuing responsibilities as Chairman of the Board. In the
Annual Report and Accounts for 2008, it was noted that the Board had agreed with
Mr Rennocks that he would continue in this dual role until June 2009; whilst
before that date the Board's Nomination Committee would decide when to initiate
a recruitment process for a full-time Chief Executive.
Since then, however, given the current stage of the Group's development and the
satisfactory start to the year's trading, the Board has reconsidered the
position. As a result, and following discussions with certain of the Group's
major shareholders, it has been agreed with Mr Rennocks that he will continue to
hold both roles until such time as the development of the Group justifies the
appointment of a full-time Chief Executive.
Annual General Meeting and proposed dividend
The Annual General Meeting of the Company is being held today, 01 May 2009. One
of the resolutions to be put to the meeting relates to the proposed final
dividend of 1.5p per ordinary share; if approved, this dividend will be paid on
05 June 2009 to shareholders on the register on 08 May.
Contact details
John Rennocks, Chairman
Martyn Ellis, Finance Director
Nestor Healthcare Group plc
Tel: 01784 221600
Toby Mountford/ Hannah Seward
Citigate Dewe Rogerson
Tel: 0207 638 9571
This information is provided by RNS
The company news service from the London Stock Exchange
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