Daejan blames Southern Cross for its losses

PROPERTY group Daejan Holdings yesterday blamed its swing to a half-year loss on the failure of care home manager Southern Cross.

FTSE 250-listed Daejan posted a pre-tax loss of £121,000 for the six months to the end of September, compared with a profit of £39.3m a year ago.

The firm said lost rent and expenses due to Southern Cross’s collapse had halved its net operating profits.

Daejan owns nine care homes that were leased to Southern Cross, which have now been rented out to other residential care home operators. The value of the homes has been written down by £11.5m.

Rental incomes rose 2.9 per cent to £52.5m during the half-year.