CareTech Holdings PLC (AIM: CTH), a pioneering provider of specialist social care services in the UK, is pleased to announce its interim results for the six months ended 31 March 2018.
Financial Highlights
- Revenue increased by 11.2% to £87.6m (H12017:£78.8m)
- Underlying EBITDA(i) increased by 6.6% to £19.5m (H12017: £18.3m)
- Underlying profit before tax(ii) increased by 5.3% to £13.8m (H12017: £13.1m)
- Underlying diluted earnings per share(ii) reduced by 9.2% to 14.86p (H12017: 16.37p)
- Strong operating cash inflow before non-underlying items of £19.1m (H12017: £15.8m) with net debt of £147.0m at 31 March 2018 (31 March 2017: £122.5m) (iii)
- Interim dividend increased by 6.1% to 3.50p (H12017: 3.30p) per share
- Net assets have grown by 6.7% to £208.3m (H12017: £195.2m)
- Cash inflows from operating activities were £15.8m (H12017: £11.5m)
Strategic Highlights
- CQC and Ofsted ratings for the Group companies have improved and remain ahead of sector averages
- Strong organic growth initiatives continue
- Strengthened management team able to scale the business further
- Successful ongoing integration of recent acquisitions
- CareTech Foundation first partnerships with Barnados, British Asian Trust and Skills for Care launched
Commenting on the results, Farouq Sheikh, Executive Chairman of CareTech, said: “This has been an impressive performance for the first half of 2018 which delivered year on year growth in revenue, underlying EBITDA and profit before tax.
“The Group has a number of consolidation opportunities under consideration. In addition, it has a strong pipeline of organic additional beds in reconfigured services and in new services. This will lead to a growth in capacity and revenues which will generate additional EBITDA and cash so the Group can achieve its target of double digit growth in underlying diluted earnings per share in the medium term.
“The continued provision of first-class social care which represents good value and is focused on successful client outcomes will remain the main market driver for CareTech’s continuing growth.
“I am pleased that the CareTech Charitable Foundation has had a successful first year. There has also been good progress on both International and Digital projects during the half year.”
(i) Underlying EBITDA is operating profit stated before depreciation, share -based payments charge and non-underlying items explained in note 3.
(ii) Underlying profit before tax and underlying diluted earnings per share are stated before non-underlying items (explained in note 3).
(iii) Net debt is defined by the Group’s banking facilities and comprises Cash and cash equivalents net of loans and borrowings.
(iv) EBITDA is operating profit stated before depreciation, share-based payments charge and amortisation of intangible assets.
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