SOUTHERN Cross Healthcare Group Plc plunged a record 85 percent in London trading yesterday after the British care-home operator cut full-year profit goals and said credit woes are hampering the repayment of a loan.

The company fell as much as 265.25 pence to 47.75 pence, wiping more than 400 million pounds (US$798 million) off the company's market value. The drop was the most since the company first sold shares two years ago. The stock traded down 68 percent to 100 pence at 11:01am in London.

The company won't reach analysts' full-year target for bed occupancy after failing to recover from the departure of "several hundred" people in December, Chief Executive Officer William Colvin told Bloomberg News.

Finance chief Jason Lock stepped down yesterday, and the care-home operator got an extension on a 46-million-pound loan because of difficulties selling properties to repay it.

Full-year adjusted earnings before interest, tax, depreciation and amortization will be less than 80 million pounds, he said. Brewin Dolphin analyst Sahill Shan estimated full-year Ebitda at 91.7 million pounds in a client note.

"The surprise for us is that those winter rates of attrition have continued into July," Colvin said. "An average for the full year of 33,300 would have required a heroic jump in the end of the year and that was never going to happen. The incremental number of beds that we miss will go straight through to the Ebitda line."

Southern Cross named Richard Midmer as chief finance officer to replace Lock. The company also has been granted a one-month extension to repay the loan, Colvin said yesterday.