FIVE Gwent care homes are facing an uncertain future after the company that owns them lost £300 million in six months.

Southern Cross Healthcare Group PLC is the UK's largest provider of care homes for the elderly, with more than 750 homes across the UK, including five in Gwent.

Ebbw Vale homes Red Rose Nursing and The Rookery, Millview House and Lodge in Newbridge, St Dunstans in Pontypool, and Sedbury Park in Chepstow all provide residential care, including specialist care for dementia sufferers and support for young disabled people.

But staff and residents are facing an uncertain future after Southern Cross posted losses of £300 million in the six months to March 31 2011, and the company's chairman Christopher Fisher warned it was in a "critical" financial position, due to a decline in local authority admissions and high rents from landlords.

Auditors Pricewaterhouse Coopers also warned that there was "significant doubt" over Southern Cross' ability to continue as a going concern.

Chairman Mr Fisher admitted it "cannot afford to meet its future rent obligations in full", but a statement from the company said it has no plans for a large scale closure of its homes.

The company is now in discussions with landlords to reduce rents, as well as talking to key stakeholders to agree of a package of measures to help Southern Cross restructure its financial affairs by the end of the summer.

Islwyn AM Gwyn Price yesterday sought reassurance from Southern Cross about the future of the care home in his patch - Newbridge's Millview House and Lodge.

Mr Price said: "Many residents will be settled in homes such as the one in Newbridge. They and their families will not be interested in the financial machinations going on between investors, they will just want clarity on the future of their home."

He said he would be raising the matter with the Assembly Government.

A statement from the Assembly Government said it would continue to have an "open dialogue" with Southern Cross, offering contingency plans through local councils and the NHS, but would not play any role in funding a solution to the company's financial woes.

GMB union called on landlords who rent properties to Southern Cross to act soon to reduce rents.