Care home provider Southern Cross Healthcare has announced the immediate departure of its finance director Jason Lock, as its share price continues to plunge following news of a profit warning.

Lock, who was appointed to the role earlier this year, will be replaced by Richard Midmer, previously finance director at NHP.

Shares in the nursing home group dropped 58.5 per cent to 130p after it issued a profit warning and admitted it was unable to repay a £46m loan on time.

Southern Cross said local authority budgetary constraints and lower than expected occupancy rates had contributed to its disappointing financial performance.