12th Sep 2018 11:11
LONDON (Alliance News) - Education and behavioural health service provider Cambian Group PLC on Wednesday swung to a profit in the first half of 2018 on revenue growth and lower administrative costs.
For the six months to the end of June, Cambian swung to a pretax profit of GBP1.6 million from a loss of GBP1.2 million for the same period the year before, on revenue that rose to GBP105.2 million from GBP100.6 million. Administrative expenses dropped to GBP20.3 million from GBP22.8 million the prior year.
Revenue growth was bolstered by an increase in average daily fees to GBP369 from GBP342, due to improved fee levels from higher severity services.
The company has not declared an interim dividend due to the merger offer by CareTech Holdings PLC. In the first half of 2017, the company paid a 0.14 pence per share dividend.
CareTech is to pay 100 pence in cash, and 0.267 of a CareTech share, per Cambian share, though there is a full cash alternative worth 190p. The deal values Cambian at GBP372 million on a fully diluted basis and GBP289 million on an enterprise value basis.
"The group is performing in line with the board's expectations and we are very pleased with our first set of results as a pure children's specialist education and behavioural health services company. These results are in line with the medium-term strategy presented in January and further opportunity exists to improve occupancy and margins," said Chief Executive Officer Saleem Asaria.
Shares in Cambian Holdings were up 0.5% at 194.40 pence on Wednesday.