Southern Cross, the beleaguered nursing home operator, on Friday made changes to its senior management team in the wake of a disastrous profits warning earlier in the week that saw a sell-off in its shares.

Kamma Foulkes, a registered nurse, has been promoted to the board to take over some of the responsibilities of the group's managing director John Murphy.

The move follows sharp criticism of the group's senior management by investors who have seen the value of their shares halve in the past week.

The share price plunge followed a profit warning on Monday accompanied by news that it was in emergency talks with its bankers after finding itself in breach of an important banking covenant. It also announced earlier this week the departure of its finance director who had been in the post just six months.

Ms Foulkes will take charge of the the group's elderly care division, previously overseen by Mr Murphy, who will be focusing his efforts on the company's active care arm.

This division provides care for young people with learning difficulties. A spokeswoman for the company said the division needed "a lot of attention". Its performance has been significantly below forecasts due to lower occupancy levels and high fixed cost base. It is in the process of conducting a review of the business.

Southern Cross' overall business has been beset by difficulties. Central government funding to local authorities for social care has come through later than in previous years. Occupancy levels have also been affected by higher than normal "attrition rates" - the number of patients who leave homes mainly by dying.

It has also been hurt by the fall in the property market. Southern Cross expanded rapidly in recent years by purchasing large residential care properties, then selling the facilities and leasing them back. But the company has run into trouble recently in finding a buyer for 20 homes and had been due to repay £46m of an £82m loan it had raised to buy the homes.

Leading investors in Southern Cross voiced their criticism of the company's senior management after the share price plunge.

Ms Foulkes currently managing director of 324 homes in its southern division joined the group in 1998 and has worked in the residential nursing care sector since the early 1990s.

Richard Midmer, the new finance director, has also joined the board of directors.

Ray Miles, chairman, said: "Kamma currently oversees the operations of the group's southern division and her experience and knowledge will provide a highly valuable insight to the board."

Shares, which have halved in value since the market opened on Monday, were down 1.4 per cent or 1¼p in early trade on Friday at 90p.