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Southern Cross - 5.8% increase in fees

July 2008

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Shares in care home operator Southern Cross have shrugged off the pall cast by recent director sales thanks to a strong set of interim results, which have resulted in brokers slightly upgrading forecasts.For the six months to 30 March, EBITDA rose 41% to Â£30.8m on turnover that increased 22% to Â£411m. Eps increased 15.3% to 6.8p. This came thanks to a 5.8% hike in fees, with average occupancy, excluding the impact of immature homes, slipping slightly from 91.1% to 90.4%. Effective control of running costs meant EBITDA margins rose from 6.5% to 7.1%. In the year to date Southern Cross has added a further 1,106 beds to just over 37,000 and with another 369 also in the pipeline, that will make for annual growth in capa ...

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Southern Cross - Fee rises support margins (October 2009)

Southern Cross - Portfolio constituent hits six-month high (June 2009)

Southern Cross - With debt concerns almost eliminated the shares look cheap on PE of 4.3 (April 2009)

Southern Cross - Dramatic recovery in finances means care homes operator looks over-sold (March 2009)

Southern Cross (October 2008)

Southern Cross - Shock profit warning (August 2008)

Southern Cross (April 2008)

Southern Cross - Underlying occupancy over 92% (November 2007)

Southern Cross - Divests freehold for Â£30m (October 2007)

Southern Cross (July 2007)

Southern Cross (June 2007)

Southern Cross (May 2007)

Southern Cross - Blackstone exit triggers re-rating (April 2007)

Southern Cross (February 2007)

Southern Cross - Largest provider of care homes exhibits strong demand profile (November 2006)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

Southern Cross - 5.8% increase in fees

July 2008

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