LONDON (ShareCast) - 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 Buys

Amlin (AML)
Director name: Ms Julie Chakraverty
Amount purchased: 8,000 @ 394.56p
Value: £31,565

Renold (RNO)
Director name: Mr Mark Harper
Amount purchased: 87,719 @ 28.50p
Value: £25,000

Scottish Oriental Smaller Companies Trust (SST)
Director name: Mrs Anne West
Amount purchased: 2,000 @ 737.00p
Value: £14,740


Top Director Sells

Fisher (James) & Sons (FSJ)
Director name: Mr Nick Henry
Amount sold: 16,000 @ 1,101.24p
Value: £176,198

Xchanging (XCH)
Director name: Mr David Bauernfeind
Amount sold: 75,422 @ 122.75p
Value: £92,581

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