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RNS Number : 7206E

Southern Cross Healthcare Grp PLC

12 April 2011

Tuesday 12 April 2011

Southern Cross Healthcare Group PLC

('Southern Cross', 'the Company' or 'the Group')

Board Changes and Restructuring Update

Southern Cross, the UK's largest care home operator, announces the resignation of Ray Miles as a Director of the Company and as Chairman of the Board. In his place Christopher Fisher, a current non-executive Director of the Company, has been appointed Chairman with immediate effect.

Christopher Fisher joined the Board in June 2006. He spent most of his career at Lazard, the investment bank, where he was a Managing Director, and has also served as Vice Chairman, Corporate Finance, at KPMG.

In addition, to allow Jamie Buchan, Chief Executive, to focus on the Group's restructuring and capital needs, Mark Cash, in addition to his Executive Committee responsibilities takes the new role of Chief Operating Officer. Mr Cash, who will be undertaking this role on an interim basis reporting to Mr Buchan, joined Southern Cross as a Regional Director in September 2009 and previously held senior roles within Sunrise Senior Living Ltd and Exxon/Mobil where he ran Exxon's UK and Ireland service station network.

The Group is maintaining regular and constructive dialogue with its lenders who continue to be supportive. The Company will shortly be making proposals to its major landlords as to how its rent burden and capital structure might be re-organised. While there can be no certainty as to the success of these negotiations, the prevailing mood appears constructive.

The full year profit outlook has come under further pressure, principally due to the additional disruption caused by the restructuring announcement; however, management is encouraged by the supportive stance being adopted by Regulators, Local Authorities and Staff during this period.

The Company expects to release its interim results statement in the week beginning May 9.

Ray Miles, outgoing Chairman, commented:

"Given that my own experience has mainly been building businesses and improving their operational performance and that the Company now faces a period of intense financial restructuring, it is time to hand over to others with more experience of this. I have huge admiration for the management team and the many excellent people who work in Southern Cross and wish them well in these difficult times."

Christopher Fisher, Chairman of Southern Cross, commented:

"Ray has served as Chairman for over three years and the Board would like to record its genuine appreciation for his contribution to the Company over this period.

"Looking ahead, the Board is focused on supporting Jamie Buchan and his executive team in promoting an orderly restructuring of the Company's affairs, to stabilise its financial position and to provide the business with a sustainable platform for the future while at the same time ensuring the continued delivery of high quality care for residents."

Enquiries:

 
 Southern Cross Healthcare Group 
  PLC                                       +44 (0)1325 351100 
 Jamie Buchan, Chief Executive 
 David Smith, Group Finance Director 
 Amy Kroviak, Director of Communications 
 
 
 Financial Dynamics            +44 (0)20 7831 3113 
 John Waples/ Ben Brewerton 
 

About Southern Cross

Southern Cross is, in terms of number of beds, the largest UK provider of care home services for the elderly and a major provider of specialist services for people with physical and/or learning disabilities. The Group's care homes for the elderly operate under two distinct brands: Southern Cross Healthcare and Ashbourne Senior Living. Both brands provide a range of social and personal care services and nursing care services for elderly people with physical frailties and differing forms of dementia. The Group's specialist services operate under the Active Care Partnerships brand and provide long-term care services for people with physical and/or learning disabilities and for younger people with complex forms of challenging behaviour.

Southern Cross is focused on providing high quality care in well invested facilities, seeking to be the home of choice in each local community in which it operates. The Group provides care services for most of the local authorities in the UK which, together with the NHS, represent circa 78% of the Group's revenues. Its care home portfolio is largely purpose-built with a high percentage of single occupancy rooms and rooms with ensuite bathrooms.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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