SCV Group has entered into due diligence to buy aged care manager Eureka Care Communities for $400,000.
Eureka manages 12 former Village Life villages which are identical in format to the majority of the villages managed by SCV. The purchase includes the transfer of the management team which currently operates Eureka.
Eureka holds the management rights to 12 villages, five in South Australia, six in Queensland and one in New South Wales. The operating profit of the village for the 2010 year is estimated at $700,000.
It is intended that Mike Bosel, CEO of Eureka will be appointed CEO of SCV.
Meanwhile the company has wound up its managed investment schemes business. As result, SCV has achieved a Net Profit after Tax of approximately $190,000 and EBITDA of $860,000 at March 31 2010 – compared to a net loss after tax of $4,934,978 and EBITDA loss of $2,753,435 for the same period last year.
SCV will convene a general meeting of shareholders to vote on the acquisition.
Australian Property Journal
