Cambian Reinstates Dividend Amid Narrowed 2017 Losses And Revenue Rise

21st Mar 2018 09:47

LONDON (Alliance News) - Care services firm Cambian Group PLC reinstated its ordinary dividend Wednesday after its loss narrowed in 2017 amid rising revenue and a sharp fall in finance costs as 2018 performance was begun in line with expectations.

In 2017, pretax loss narrowed to GBP9.0 million from GBP37.4 million the year prior. This was after revenue rose to GBP196.0 million from GBP182.1 million the year before.

Profit performance was helped by a dramatic fall in finance costs from GBP29.8 million in 2016 to just GBP399,000 in 2017. This was after it wrote off the carrying value of its borrowing following a financial restructuring. This was only partially offset by a rise in exceptional administrative expenses to GBP11.2 million from GBP7.4 million the year prior.

Adjusted pretax profit - excluding exceptional items - swung to GBP2.2 million profit from a GBP400,000 loss the year before.

Cambian reinstated a final dividend of 0.25 pence per share from nothing the year before. With the also reinstated interim dividend already paid, Cambian's full year dividend was 0.39 pence from nothing the year prior.

During the year, Cambian paid 27.1 pence per share in special dividends.

"2018 will be a year of consolidation and we will continue to invest in the systems and support for our staff necessary to deliver on our plans to return, in a measured fashion, to capacity led growth," Cambian Chief Executive Officer Saleem Asaria said.

"The year has started broadly in line with the Board's expectations taking into account the temporary setback following the current affairs television programme, in December 2017, and further investment in quality and workforce capability," Asaria added. "Our focus this year is to continue to improve quality whilst re-positioning services to higher severity with corresponding fee increases."

In December, three of its specialist children's care facilities were subject to a television programme in which it was alleged the company had provided poor care and education services.

"We remain confident for the medium-term outlook and the group's longer-term potential, while in the short-term we expect to continue to make progress in 2018 and look forward to the future with confidence," Asaria concluded.

Shares in Cambian were 6.0% lower at 192.20 pence on Wednesday.

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