Revenue at CareTech grows 11%

CareTech’s purchase of Cambian cleared by CMA
Farouq Sheikh, CareTech’s executive chairman

Revenue at CareTech rose by 11.2% to £87.6m in the six months ended 31 March 2018 (H1 2017: £78.8m), its latest financial statement has revealed.

Underlying EBITDA increased by 6.6% to £19.5m (H1 2017: £18.3m), while underlying pre-tax profit rose by 5.3% to 13.8m (H1 2017: £13.1m).

The specialist social care provider’s net assets rose by 6.7% to £208.3m (H1 2017: £195.2m).

During the six-month period there was a net increase of 38 residential and foster care places, alongside an extra 15 beds in reconfigured services, 41 new beds in children’s services and 10 new beds in adult’s services. The group’s net capacity at the half year was 2,572 places.

To meet demand, the group is developing services and properties, including more children’s sites in Scotland and homes in the North West and the west of England. Homes are also being reconfigured in the West Midlands and the North West to meet service demands.

Farouq Sheikh, CareTech’s executive chairman, said: ‘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.’

CareTech operates 292 specialist adult and social care services in the UK.