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Westminster predicts 66% increase

Terence Wilkinson
Friday 19 March 1993 00:02 GMT
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WESTMINSTER Health Care, the UK's second-largest private nursing home operator, is forecasting a 66 per cent increase in profits to pounds 8.75m for the year to 31 May in the run-up to next month's stock market flotation, which is expected to raise pounds 63m, writes Terence Wilkinson.

Although the new shares will initially be placed with mainly institutional investors, about 25 per cent of them will be offered for sale to the public.

Pricing of the Westminster shares, together with an indicated notional dividend for the current financial year, will be announced on 31 March. Applications will close on 7 April and dealings are expected to start on 13 April.

Westminster is controlled by NME, the US healthcare company, which will retain a minority interest after the flotation. The company owns and operates 45 nursing homes providing 3,096 beds with a further 629 under construction.

In its pathfinder prospectus, issued yesterday, Westminster said the health and social care market provided significant expansion opportunities.

An estimated 77,000 long- term care beds would be needed in the UK by the end of the century to keep pace with demographic changes.

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