24th Oct 2019 10:42
(Alliance News) - Social care firm CareTech Holdings PLC on Thursday said it expects a sharp rise in annual revenue helped by a full-year contribution from Cambian Group, a UK provider of education and health services to children with learning disabilities.
Caretech said it performed in line with market expectations in the year to September 30, with the acquisition of Cambian, which was given the green light by UK regulators in February, driving an earnings rise.
Caretech said: "The group's performance reflects the acquisition of Cambian and represents a substantial increase in revenue and earning before interest, taxation, depreciation and amortisation compared with the same period last year."
"The integration plan for the combined business is well underway following the unconditional clearance from the Competition & Markets Authority on 8 February 2019. The group confirms that synergies of at least GBP3 million of profit before tax, in the first full year since acquisition, have been delivered and the group has taken action to deliver additional synergies of GBP2m (total of GBP5m) of profit before tax in the next financial year," Caretech added.
CareTech's blended and mature occupancy, of 87% and 92% respectively, is broadly similar year-on-year to 86% and 93%.
The occupancy of the Cambian business is affected by the timing of the academic year, CareTech said a number of Cambian schools begin their new term in October, after the year end.
Executive Chair Farouq Sheikh said: "This has been a year of transformational change within the Group and I am pleased to report that we are delivering all of our key objectives. The integration of Cambian is well underway and is on track with our plan. We will be welcoming those colleagues who will be relocating from Cambian's head office in Hammersmith to Potters Bar in the coming days.
"CareTech has grown into a leading national provider of specialist social care and education services to some of the most vulnerable people in our society."
The company will announce its full-year results on December 12.
Shares in CareTech were 2.6% higher at 390.00 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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