Takare issues profit warning

The pain in the nursing home sector was underlined yesterday when Takare, one of industry leaders, issued a profit warning, writes Nigel Cope. The company said that occupancy rates at some of its new homes were "disappointing" and that the homes were filling up at a "slower than expected rate".

The shares dipped 3p to 141p as the company said the slowdown would have an effect on this year's profits.

Of the 12 homes commissioned by Takare in the last year, seven are performing below the company's expectations. The seven homes account for around 10 per cent of the group's 8,500 beds.

Hamilton Anstead, the Takare managing director, said: "We would normally expect a new nursing home to be up and generating a full return 12 months after being commissioned." The under-performing homes will not achieve that criteria for an additional three months. The company will be adjusting its number of new builds during the year.