LONDON (Reuters UK) - Britain's largest care-home operator Southern Cross Healthcare Group (SCHE) said it expected full-year core earnings to be below market forecasts, wiping around two thirds off its stock market value.
In a trading update on Monday, Southern Cross said occupancy levels at its homes had not grown by as much as it originally expected and trading was unlikely to improve sufficiently for it to meet its previous forecast.
The company said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were unlikely to exceed 80 million pounds for the year to September 30, against 66.8 million the year before.
According to the mean forecast of five analysts provided by Reuters Estimates, the group had been expected to report EBITDA of around 90.4 million pounds.
Shares in Southern Cross had slumped by 67.2 percent to 103-1/4 pence by 8:32 a.m., valuing the company at around 194 million pounds.
Southern Cross also said Finance Director Jason Lock was leaving with immediate effect and would be replaced by Richard Midmer, who previously held the same post at NHP.
The company said it had been given a four-week extension -- to July 28 -- by its banks to pursue a sale of property assets to cover the repayment of one of its banking facilities. The 46 million pounds facility had been due for repayment on June 30.
Southern Cross said it had received indicative offers in relation to some of these assets.
(Reporting by Mike Elliott)
