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CareTech Holdings revenue up over 10% - prelim results

CareTech Holdings revenue up over 10% - prelim results

Thu 6 Dec 2018 07:59 by about : trading updates - 0 Comments - 2963 words

CareTech Holdings PLC (AIM: CTH), a pioneering provider of specialist social care services in the UK, is pleased to announce its unaudited preliminary results for the year ended 30 September 2018.




Revenue increased by 11.9% to £185.7m (2017: £166.0m)



Underlying EBITDA(i) increased by 10.0% to £43.9m (2017: £39.9m)



Underlying profit before tax(ii) increased by 11.9% to £32.9m (2017: £29.4m)



Underlying basic EPS at 35.07p per share(ii) (2017: 38.03p).


Cash inflows from operating activities of £30.9m (2017: £22.1m) with net debt (iii) of £147.0m (2017: £147.1m)



Overall capacity increased by 88 places(v) to 2,622 (2017: 2,534)



Proposed full year dividend increase by 11.1% to 11p (2017: 9.90p)



Independent property portfolio valued at £424m



Acquisition of Cambian Group plc in October 2018


Statutory Financial Highlights





EBITDA(iv) increased by 10.4% to £40.2m (2017: £36.4m)




Operating profit decreased by 11.0% to £20.2m (2017: £22.7m)





(i)             Underlying EBITDA is operating profit stated before depreciation, share-based payments charge and non-underlying items

(ii)             Underlying profit before tax and underlying basic earnings per share are stated before non-underlying items

(iii)            Net Debt as defined by the Group's Banking facilities and comprises cash and cash equivalents net of all Loans and Borrowings due to the Group's Bankers

(iv)           EBITDA is operating profit stated before depreciation, share-based payments charge and amortisation of intangible assets

(v)                   Overall capacity has increased by 88 with 69 additional beds in reconfigured services and new services, 69 new beds in Children's and 50 beds were withdrawn for reconfiguration.

(vi)           In 2018 the Selborne Care Limited Acquired Intangibles were independently valued and are currently being verified by the Group's Auditors. A bargain purchase credit will only be recognised when the verification is complete, and will, if material, be booked in the audited 2018 statutory accounts in due course.




Commenting on the results, Farouq Sheikh, Executive Chairman, said:


"I am truly privileged to present our results for the period ended 30 September 2018 being our 25th year in business. This is a real milestone for CareTech and has proven to be another exceptionally busy and successful year with one of the highlights being the purchase of Cambian Group plc in the early weeks of October 2018.


"Cambian is a leading Children's specialist education and behavioural health service provider.  The Cambian Group's services have a specific focus on Children who present high severity needs with challenging behaviours and complex care requirements.  Cambian currently looks after over 2,000 children and employs over 4,500 people across a portfolio of 222 residential facilities, specialist schools and fostering offices located in England and Wales.  On 19 October 2018 the recommended acquisition of Cambian by the Group was completed.  I welcome both Anne Marie Carrie as Chief Operating Officer of the Cambian operations, and the whole Cambian team, as well as the 2,000 children who use their services, to the CareTech Group. I strongly believe that the CareTech offerings in learning difficulties and specialist services for adults and residential services and fostering for young people, is highly complementary to Cambian's services in Children's residential care, specialist education and therapeutic fostering.  Furthermore the geographic reach of the services has been broadened, now providing a nationwide network.

"This is a special year for CareTech in achieving a memorable milestone of 25 years in business and also celebrating the 13th year in the public markets.  During this time, the business has transformed from being very focused on supporting adults with a learning disability through residential and day care settings to one where today we also cater for young people and children with complex needs across a range of settings, be it residential, supported living or community support.  We focus on the most complex and vulnerable young people and the market for this client group stands at over £10bn. There is currently an undersupply of specialist beds in this niche area and the market is growing by almost 3% per annum.


"On joining AIM, the Group had a capacity of 435 places, an underlying EBITDA of £2.4m with an underlying diluted EPS of 4.1p. Today our capacity has increased over six fold to 2,622, our underlying EBITDA has grown significantly to £43.9m today whilst underlying diluted EPS is 35.06 pence per share. Underlying EBITDA and diluted EPS have grown by an impressive compound annual growth rate of 26% and 20% respectively since IPO.


"Having just completed the Cambian acquisition post year end, we now have a national presence with over 450 homes and schools in the UK with around 10,000 staff supporting some 4,500 vulnerable young people and adults. This has been an incredible journey that has only been possible due to the hard work and dedication of each and everyone one of our staff that make up the CareTech family!


"When we set up CareTech all those years ago our underlying vision was very simple.

"We wanted to build the very best designed homes, furnish them to the highest of standards and match this with an innovative person centric care and support package. We wanted to be different and create a feeling that parents, carers, care managers felt so overwhelmed with our unique offering that they instantly wanted to move in themselves! We saw this reaction over many of the homes we opened and this created a buzz in the sector!

"We have major investment plans for 2019 and beyond with key new organic developments and bolt-on acquisitions. Importantly we also continue to see how we can enhance further, the use of technology as a validation of our work as well as for diagnostic and assessment purposes whilst exploring opportunities abroad in the international market particularly the GCC. We will further strengthen our management team offering a forceful blend of experience, commercial wisdom and dedication to care.  I have no doubt that the next few years will see continuing growth and care excellence which will help deliver our target of double digit growth in underlying EPS."



These articles are summaries / highlights and dont always include all financial news updates. Check at company website INVESTORS INFORMATION for full published results.

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