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CareTech Holdings Revenue Rises But Profit Drops On One-Off Charges

LONDON (Alliance News) - Social care service provider CareTech Holdings PLC said on Thursday it ...

Alliance News 7 December, 2017 | 10:04AM
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LONDON (Alliance News) - Social care service provider CareTech Holdings PLC said on Thursday it upped its dividend as revenue saw a double digit increase in its recently-ended financial year.

For the year ended September 30, revenue grew by 11% to GBP166.0 million from GBP149.0 million the year before, leading to a lift in gross profit to GBP59.9 million from GBP54.3 million.

However, due to a leap in administrative expenses, operating profit was reduced to GBP22.7 million from GBP30.4 million. The higher expenses came from was a result of acquisition and development costs, integration and restructuring costs, and costs from the placement of shares.

Pretax profit for the full year came down to GBP16.8 million from GBP22.5 million the prior year. On an underlying basis excluding on-off items, pretax profit rose by 13% to GBP29.4 million from GBP26.1 million.

CareTech declared a full-year dividend of 9.90 pence per share, up 7.0% from 9.25p the year before.

"We enter the current financial year with strong underlying cash flow, solid organic growth and a sizeable pipeline of opportunities, which together give us confidence in continue to deliver our exciting growth strategy," said Executive Chairman Farouk Sheikh.

"With the money raised from shareholders, solid free cash flow generated from the business plus access to bank funding, we have major investment plans for 2018 and beyond with key new organic developments and bolt-on acquisitions. Importantly, we have also, and continue to, further strengthen our management team, offering a forceful blend of experience, commercial wisdom and dedication to care. I have no doubt that the next few years will see continuing growth and care excellence which will help deliver our target of double digit growth in underlying earnings per share," Sheikh added.

Shares in CareTech Holdings were up 1.6% at 432.75 pence on Thursday.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
CareTech Holdings PLC 434.00 GBX 0.70 -
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