(Alliance News) - CareTech Holdings PLC on Thursday reported a sharp increase in annual profit and revenue following its takeover of peer Cambian Group PLC.
In mid-August, CareTech agreed to buy children's specialist education services provider Cambian for GBP278.5 million. Cambian shareholders now own around 36% of the enlarged company.
"I am delighted to be reporting our first full year financial results following the acquisition of Cambian in October 2018. The group's performance reflects the plans we set out at the time of the acquisition and delivers a substantial increase in revenue and earnings before interest, tax, depreciation, and amortisation compared with the same period last year," said Executive Chair Farouq Sheikh.
As a result of the acquisition, the company's annual revenue saw a sharp increase.
In the year to September 30, the adult and child care home operator's revenue more than doubled to GBP395.0 million from GBP185.7 million the year before. Like-for-like revenue increased 5.8% to GBP196.5 million.
Pretax profit rose 58% to GBP24.3 million from GBP15.4 million.
Ebitda grew 68% to GBP73.5 million with CareTech's like-for-like Ebitda growing marginally to GBP44.3 million.
Sheik continued: "This has been a year of transformational change within the group and I am pleased to report that the group's trading performance in the year is ahead of market expectations and we have delivered on all of our key work streams and metrics and maintaining focus on our core business, 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."
CareTech declared a final dividend of 7.95 pence, up 6.0% on the year before, giving a total dividend of 11.70p for financial 2019, 6.4% higher than the 11.0p distributed the year before.
"I have no doubt that the next few years will see continued growth through a combination of the integration of Cambian, reconfigurations and organic developments, in order to deliver our target of double digit growth in underlying EPS," Sheik added.
CareTech recorded underlying earnings per share of 37.60p in financial 2019, up 7.2% year on year.
Shares in CareTech were up 2.1% in London on Thursday at 394.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
