CareTech ends year ahead of expectations

(Sharecast News) - Specialist social care and education services provider CareTech Holdings reported "robust" trading in an update on Wednesday, with results for the year ended 30 September ahead of market expectations.
The AIM-traded firm said it saw strong operating cash conversion during the year, and an accelerated reduction in net debt to £268.9m.

It said its core business was performing strongly, with Cambian performing "slightly ahead" of the targets set out at acquisition.

The board said it had continued its organic growth initiatives, and acquired Smartbox in line with its digital roadmap strategy.

"CareTech continues to provide a vital role as a leading provider of complex care across the UK," said chief executive officer Farouq Sheikh.

"The group has remained resilient throughout the Covid-19 crisis and this is a testament to the quality of our operations, staff, and to the underlying business model."

Sheikh said the company's financial performance had "further strengthened" over the period, with strong cash flow generation and continued deleveraging.

"Our acquisition of Smartbox is in line with our strategy to blend care and technology which will benefit our service users.

"Whilst these remain challenging times, we enter the new financial year in a robust position and remain confident in our outlook."

At 1005 BST, shares in CareTech Holdings were up 2.62% at 470p.