LONDON (Alliance News) - Social care services company CareTech Holdings PLC Thursday expressed confidence for its performance in the remainder of its current financial year as it posted a decline in pretax profit for its first half.
The company reported a pretax profit of GBP4.1 million for the year to end-March, down from GBP5.6 million a year before, as a result of revenue declining to GBP60.7 million from GBP61.5 million and amortisation of intangible fixed assets of GBP2.4 million.
CareTech's net capacity at the half year was 2,052 places, down from 2,074 places at the end of September 2014, as a result of places that were withdrawn to be reconfigured into new care models, and two places that were removed in supported living. It expects the places that are being reconfigured to contribute a higher profit margin than before.
Additionally in fostering, capacity was reduced by 18 places, which CareTech attributed to an increased number of carers who were not able to foster children currently.
CareTech proposed an interim dividend of 2.80 pence, up from 2.60 pence a year before.
The company raised GBP21.0 million in a share placing in February, which it intends to put towards potential bolt-on acquisitions. It said it is currently making progress on a number of these acquisitions which it hopes will lead to growth in capacity and revenues, and ultimately help it achieve its targeted double digit growth in underlying diluted earnings per share.
"We are delighted to report a solid performance for the first half of 2015. CareTech is in a very strong position to address the demands of our evolving marketplace and the Board remains confident of the group's performance for the remainder of the year," said Executive Chairman Farouq Sheikh in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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