13 December 2017                                       

Cambian Group plc

("Cambian")

Corporate Update

On 10 November 2017, Cambian Group PLC ("Cambian") received a letter (the "Letter") from an independent television production company informing Cambian of its intention to broadcast a current affairs television programme that will include undercover video footage, taken without notice or permission, at a number of care facilities managed by independent providers, three of which are operated by Cambian.

The Letter referred to certain events that had been filmed in the Cambian facilities and other settings.  The Letter alleges that the footage demonstrates inadequate levels of both the care and education for children at those Cambian facilities and of the training and support offered to our staff.  Following receipt of the Letter, Cambian fulfilled its obligation to inform its regulator, Ofsted, of its contents and launched an internal investigation into the issues raised.

Although Cambian has not been allowed to review the footage, it is in ongoing correspondence with the television production company with a view to addressing the allegations referred to in the Letter.  The Board understands that the television programme will be aired this evening.

Cambian currently operates in excess of 220 care facilities and has approximately five routine Ofsted inspections per week at its facilities. Over 80 per cent of inspections are rated as "Good" or "Outstanding" by Ofsted on a rolling 12 month period.  Since 20 November 2017, 21 Cambian facilities have been inspected by Ofsted as part of their ongoing inspection programme.  Following these inspections, three Cambian facilities (including two of the facilities referred to in the Letter) have had their registrations initially suspended for up to three months. 

As a result of these suspension notices, Cambian is reviewing its service provision, utilising its internal quality assurance function and relevant independent external advisors.  The Board is committed to addressing any issues that are identified.

The Board believes these events will have no material financial impact on the Group in 2017 and remains confident that these issues will be satisfactorily resolved.

Ends

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About Cambian:

Cambian Group is one of the UK's leading children's specialist education and behavioural health service providers. Founded in 2004, it has grown to become a significant partner to the UK public sector. The Group's services have a specific focus on children who present high severity needs with challenging behaviours and complex care requirements. Cambian looks after 2,100 children and employs over 4,300 people across a portfolio of 224 residential facilities, specialist schools and fostering offices located in England and Wales.