27th Aug 2014 11:00
LONDON (Alliance News) - Cambian Group PLC reiterated confidence in its outlook for the rest of 2014, although it swung to a pretax loss in the half year to end-June on costs relating to its listing and acquisitions.
The health services company was formed via a merger with Advanced Childcare Ltd before it listed on the London Stock Exchange main market in April.
Cambian posted a pretax loss of GBP11.8 million, swung from a profit of GBP1.2 million in the previous year, despite seeing revenue rise to GBP116.0 million from GBP104.7 million. This due to higher administrative expenses and an exceptional charge of GBP18.7 million, which incorporated costs relating to acquisitions and its London listing, including a GBP7.7 million charge from share schemes vesting upon its initial public offering.
Revenue growth was driven by a good performance in its Adult and Children's Services divisions; in Adult Services, the commissioning environment continued to improve following recent changes in the National Health Service, Cambian said. In Children's Services, demand remained strong, and it saw occupancy of 76%, broadly flat on the previous year.
The company said that as part of its integration of Advanced Childcare it is merging its central functions, which it expects to generate long-term efficiencies. However, it does not expect this to affect it in 2014.
During the period the company acquired three education colleges and a school for autistic children from the Royal Mencap Society for a total of GBP7.9 million. It said that the integration of these acquisitions is progressing as planned.
Cambian did not propose an interim dividend, and reiterated that its first dividend will be a final dividend of not less than GBP3 million for the period from its admission to December 2014.
Shares in Cambian were trading up 2.3% at 223.00 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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