LONDON (Alliance News) - CareTech Holdings PLC on Thursday reported a decrease in annual profit despite strong growth in its two biggest divisions as the company celebrated its 25th year in business.
For the financial year that ended September 30, the specialist residential care home company reported an 8.3% decrease in pretax to GBP15.4 million from GBP16.8 million last year.
The company recorded GBP4.1 million in acquisition costs, up from GBP806,000 last year, and GBP2.5 million in acquisition adjustments, versus none the year before.
CareTech's administrative expenses increased 21% to GBP45.1 million from GBP37.2 million.
The company declared a full year dividend of 11.0 pence, an 11% increase on the 9.90p paid out last year.
CareTech's revenue increased 12% to GBP185.7 million from GBP166.0 million.
The company's Adult Learning Disabilities division - which represents 54% of group revenue - recorded 15% revenue growth to GBP101.0 million from GBP87.7 million last year.
The division's capacity increased 1.1% to 1,754. The division has withdrawn 50 places in services for reconfiguration into new care models and has developed 26 beds through reconfiguration plus an additional 43 beds have been brought into service.
CareTech said the market for high acuity care and the support of people with learning disability is growing year on year.
Resources for those with the highest level of need are being "maintained and increased" in some local authorities around the country, despite cutbacks in other areas of social service in which CareTech does not operate.
CareTech's Young People Residential Services division - 32% of group revenue - increased its revenue by 34% to GBP58.7 million from GBP43.8 million.
Young People Residential Services capacity grew 24% to 353 from 284. CareTech said the division "benefited from new services" with additions to Spark of Genius, ROC Northwest and the original Childrens services.
Spark of Genius provides "significant" benefits across the division with education facilities across Scotland and north east England which "complement" the ROC Northwest and Welsh education facilities.
CareTech said it is will "explore" opportunities in the next financial year outside the UK, with a particular interest in the Gulf Cooperation Council region of the Middle East.
Executive Chairman Farouq Sheikh said: "We have major investment plans for 2019 and beyond with key new organic developments and bolt-on acquisitions.
"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 earnings per share."
Shares in CareTech were down 0.5% Thursday morning at 352.40 pence each.
