|Master Investor Magazine
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AIM-listed social care provider CareTech Holdings (LON:CTH) has reported a 120% increase in revenues for the six months ended 31st March following the acquisition of Cambrian in October. Statutory profits before tax dropped by 19%, but underlying pre-tax profits were up by 50%.
Executive chairman Farouq Sheikh commented: “I am delighted to be reporting our first financial results following the acquisition of Cambian in October 2018. The Group’s performance reflects the scale of the acquisition and delivers a substantial increase in revenue and EBITDA compared with the same period last year.
“I am pleased to report that the Group’s trading performance in the year to date is in line with market expectations and we have delivered on all of our key work streams, all of which have been achieved with the backdrop of the Cambian acquisition, the subsequent CMA investigation and the sad passing of our Finance Director, Michael Hill.
“Like for like, the performance of the CareTech business in the half year was stronger when compared with the same period last year. The EBITDA margins of the CareTech business are in line with market expectations and the EBITDA margins of the Cambian business, before synergies, show considerable improvement when compared with their historic announced margins.
“The integration plan for the combined business is well underway following the unconditional clearance issued by the CMA in February 2019. The Group confirms that synergies of at least £3m of cost savings, in the first full year since acquisition, are on track to being delivered.
“CareTech has grown into a leading national provider of social care and education services to some of the most vulnerable people in our society. These results build on the foundations we have laid out over the last 25 years and we look forward to the future with confidence“.
CareTech’s share price rose by 2.68% to 383p (as of 16:10 BST).