CareTech Holdings, provider of residential care services for adults with learning and other disabilities, said it was evaluating “a substantial pipeline of acquisition opportunities”.
|Sales||Pre-tax profit||Earnings per share||Dividend|
|↑ 5%||-||-||↑ 15%|
Farouq Sheikh, founding chairman, said that whatever spending cuts would be announced in next week’s UK Budget, the company was well placed to continue its growth as it had only 2 per cent of a large market.
Revenues for the year to March 31 rose by 5 per cent to £41.4m ($61.3m). Pre-tax profits before amortisation and other exceptional costs increased from £5.7m to £7.6m, and the interim dividend is being raised 15 per cent to 1.84p.
In April the company raised £15m through a placing at 400p and increased its banking facilities from £107m to £165m. The shares closed on Thursday at 352p, up 4½p.
Mr Sheikh said the company had spent £11m on three acquisitions since the financial year end, adding a further 140 beds to the total of 1,480 at the year end, an increase of 50 over the previous year. It had £85m available for further acquisitions.
Basic earnings per share excluding amortisation and other exceptionals rose from 10.21p to 13.04p. After including non-cash charges for interest rate swaps and future lease adjustments, pre-tax profits were £4.6m compared with a previous loss of £821,000, and basic earnings were 6.97p, compared with a 1.77p loss.
Brewin Dolphin, the company’s broker, left its forecast for full-year pre-tax profits before exceptionals unchanged at £18.5m, compared with 2008-09’s £15.3m.