LONDON (Alliance News) - Social care services provider CareTech Holdings PLC on Thursday lifted its dividend payment as it posted a 21% jump in first half pretax profit on the back of lower finance costs, new investments, strategic initiatives and business expansion.
For the six months to the end of March, the company's pretax profit grew to GBP8.5 million from GBP7.0 million in the comparative year ago period. Revenue grew 11% to GBP87.6 million from GBP78.8 million, with growth in both the Adults and Children segments. Group client capacity rose to 2,572 places from 2.359 the year before.
First half underlying pretax profit rose by 6.6% to GBP13.8 million. Financial expenses declined to GBP2.4 million from GBP3.7 million.
CareTech declared an interim dividend of 3.50 pence per share, up 6.1% from 3.30p the prior year.
"The group has a number of consolidation opportunities under consideration. In addition, it 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 Ebitda and cash so the group can achieve its target of double digit growth in underlying diluted earnings per share in the medium term," 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 Holdings were up 3.2% at 391.00 pence on Thursday.
