Shares in Southern Cross Healthcare rose almost 6 per cent after Britain’s biggest care home provider delivered solid revenues on the back of strong demand and fee increases.

Bill Colvin, chief executive, said he was keen to buy smaller care home competitors as he increased his acquisition facility from £60m to £108m. The company may put a bid in for Craegmoor Healthcare, Britain’s fifth-biggest care home group, which is on the block. It has 4,300 beds against Southern Cross’s 37,000.