CARE home operator Southern Cross Healthcare made a double announcement yesterday as it continued to expand across the region.

The Darlington-based plc - the UK's largest care home provider - said it had entered a management agreement with the Bondcare Group for the management of 39 elderly care homes.

The homes, mainly in the North-East and South-East, will be integrated within the Southern Cross and Ashbourne Senior Living brands.

Southern Cross said the operating businesses of the Bondcare homes will be acquired for a nominal consideration.

The Company also announced the acquisition of a single care home in Harrogate, North Yorkshire. The 106-bed home will also be integrated within the Ashbourne Senior Living brand.

Philip Scott, chief executive of Southern Cross, said: "The past twelve months has seen the company complete numerous acquisitions, affirming our strategy to lead the consolidation of the UK elderly care home market.

"Today's announcement adds over six per cent to bed capacity and demonstrates the flexibility in our acquisition model through direct tenancy arrangements.

"Bondcare's 39 care homes are a high quality addition to our portfolio in both North-East and South-East England, which we look forward to integrating into our Southern Cross and Ashbourne Senior Living brands."

Following yesterday's announcement, Southern Cross, which floated on the stock market in July 2006, now operates 36,186 beds in 710 care homes.

During the current financial year the company has added 7,269 beds to the portfolio through acquisition and development, far exceeding the initial target of 1,200 beds per year.

In June, Southern Cross acquired Avery Healthcare Limited, which operates 15 homes with 845 beds, mainly in the North-East, for £96.5m.

Earlier this year, the company reported a dramatic decrease in losses to £600,000 for the 26 weeks to April 1, compared to £12.4m in the same period last year. Revenue climbed 17 per cent to £336.3m.