CareTech heads buy close to a million shares

28th Aug 2013 15:59

CareTech, the AIM-listed social care services firm, announced Wednesday that both its Executive Chairman and Chief Executive Officer each purchased 485,000 shares. Farouq Sheikh and Haroon Sheikh both paid 190p a share, costing a total of £921,500. The purchases were announced the same day the company unveiled its plans to save substantial costs in rental charges following the acquisition of two property portfolios.The company said that it has bought the freeholds of the portfolios, comprising 29 properties in total, for £38m.The company estimates that it will save up to £4.4m in rent in 2014 and more thereafter given that previous rental terms were subject to inflation-based increases.Executive Chairman Farouq Sheikh said: "This share purchase underlines our belief in the acquisition announced earlier [on Wednesday] of the freeholds to 29 properties in CareTech's portfolio. "The acquisition, which replaces a rent cost of £4.4m in 2014 with an interest cost of £1.6m, is immediately earnings enhancing and gives the group greater flexibility to reconfigure and upgrade the properties." Top Director BuysAmlin (AML) Director name: Ms Julie ChakravertyAmount purchased: 8,000 @ 394.56p Value: £31,565Renold (RNO) Director name: Mr Mark HarperAmount purchased: 87,719 @ 28.50p Value: £25,000Scottish Oriental Smaller Companies Trust (SST) Director name: Mrs Anne WestAmount purchased: 2,000 @ 737.00p Value: £14,740Top Director SellsFisher (James) & Sons (FSJ) Director name: Mr Nick HenryAmount sold: 16,000 @ 1,101.24p Value: £176,198Xchanging (XCH) Director name: Mr David BauernfeindAmount sold: 75,422 @ 122.75p Value: £92,581