LONDON (Alliance News) - CareTech Holdings PLC on Thursday posted rises in both pretax profit and revenue in the first half of its financial year, adding that it plans to boost capacity through its pipeline of organic additional beds in reconfigured services and new services.
The social care services provider said revenue grew 17% to GBP70.8 million for the six months ended March 31, up from GBP60.7 million a year earlier, which drove a huge rise in pretax profit to GBP11.2 million, up from GBP4.1 million a year earlier.
During the first half, CareTech said there was a total net increase of 176 residential and fostering places, taking the total net capacity to 2,292 places at the end of April from 2,116 places at September 30.
An additional 32 beds were added in reconfigured services and new services. Reconfigured services and new services "generate a higher contribution than the beds pre-configuration and are part of an ongoing strategy to enhance margins," CareTech said.
There is additional residential capacity, CareTech said, with ROC North West Ltd, the North West based provider of residential care and education for young people which it purchased in December, adding 41 places. The company's other purchase, rehabilitation centre operator Oakleaf Care (Hartwell) Ltd, which was bought in March, has added 102 places, CareTech said.
There was a net increase of 1 place in capacity within fostering, which CareTech said reflected an increase in the numbers on its register of carers who were able to foster children currently.
CareTech proposed an interim dividend of 3.00 pence per share, up from 2.80p per share.
"CareTech has a strong pipeline of organic additional beds in reconfigured services and in new services. This will lead to a growth in capacity and revenues which will generate additional earnings before interest, tax, depreciation and amortisation, and cash so the group can achieve its target of double digit growth in underlying diluted earnings per share," said Executive Chairman Farouq Sheikh.
"The continued provision of first-class social care which represents good value and is focused on successful client outcomes will remain the main market driver for CareTech's continuing growth," Sheikh added.
Shares in CareTech were up 0.1% at 233.80p on Thursday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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