TIDMNSR
RNS Number : 6331B
Nestor Healthcare Group PLC
30 October 2009
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30th October 2009
Nestor Healthcare Group plc
Interim Management Statement
Nestor Healthcare Group plc (the "Group") announces its Interim Management
Statement covering the period from our half-year end 5th July 2009 to date.
Financial performance
Group results in the period since the release of our Interim results have
remained in line with the directors' expectations.
Trading update
Our Social Care businesses are performing well with volumes in Goldsborough /
Medico continuing to show month-on-month growth. This growth has been achieved
organically, with attention to detail employed by management in individual
branches, supplemented by tender successes. A proportion of this volume growth
is undoubtedly due to the quality standards established in the business, which
are subject to independent audit by the Care Quality Commission. Country Cousins
and Patricia White's, our two private homecare businesses, continue to deliver
excellent returns.
In Primary Care we have opened four GP practices / walk-in centres in the last
three months, the latest in Scarborough on 1st October. In each case, volumes
are so far exceeding expectations and service levels have been excellent. The
fifth centre, in Hereford, will be operational in the new year. Primecare has
recently been awarded a further GP practice, located in the West Midlands, which
is expected to open in April 2010. In addition, we have been managing additional
swine-flu related activity and are in further discussion with customers in
England and Wales to provide more primary care services during future flu
outbreaks. Whilst not generating a significant profit impact, this opportunity
is nevertheless a reflection of Primecare supporting the NHS through a difficult
time and being recognised as a valuable partner. Elsewhere tender activity
remains very busy with the first Dental Access Programme projects now released
and Primecare having successfully passed through to tender stage on all
submitted schemes to date.
Bank facilities
The Group has successfully concluded discussions on renewed credit facilities
with its bankers, Barclays and HSBC.
The new facility is in place for a period of four years commencing 28th October
2009. A revolving credit facility of GBP25m has been agreed with an additional
GBP7.5m available for any performance bonds that might be required by Local
Authorities.
An arrangement fee of GBP500,000 is payable, equivalent to 2% of the revolving
credit facility, and borrowings will be subject to a margin of 2.75% above
LIBOR. The key covenants are a debt to EBITDA ratio of 2.5 times and interest
cover of 5 times.
The Board is pleased with this outcome, in particular the four-year term, which
is seen as evidence of the confidence of our banking partners in the Group's
prospects.
Financial position
Net borrowings as at 27th October 2009 were GBP15.6m, which compares to the last
published figure of GBP16.9m as at 5th July 2009.
Contact details
John Rennocks, Chairman
Martyn Ellis, Finance Director
Nestor Healthcare Group plc
Tel: 01784 221600
Toby Mountford
Citigate Dewe Rogerson
Tel: 0207 638 9571
Mob:07710 356 611
This information is provided by RNS
The company news service from the London Stock Exchange
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