Given the UK’s growing and ageing population, it's unsurprising that care-home beds are in high demand. However, the companies that run these homes have struggled to obtain manageable fees from local authorities over the past few years. CareTech (CTH) has successfully negotiated fee rises in the year to September 2017 and management therefore expects full-year results to be in line with expectations.
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Growth has come from the 215 new beds added to the portfolio in the past year, 57 of these through acquisition. CareTech has maintained its high margins by keeping occupancy rates in the mature estate at 93 per cent.
