‘Progress’ at CareTech
Article Date: Oct 15 2008Healthcare specialist CareTech reports ‘further progress’, organically and by acquisition, and ‘additional capacity’ for more growth.
In an upbeat trading statement, the Hertfordshire-based company, which provides residential and ‘supported living’ services for people with learning disabilities, says in the year to September it increased its capacity by 279 beds and now supports 1,300 clients in the two categories. AIM-quoted CareTech, which increased interim pre-tax profits 58 per cent to £3.87 million, says 182 of these extra beds came through acquisitions, notably the £15.3 million purchase of Yorkshire-based Valeo, which was accompanied by a £30 million placing at 420p.
Executive chairman Farouq Sheikh, who has recruited therapist and ex-Reed Health Group chief Christa Echtle as a non-executive director, says the company is now trading ‘in line with market expectations’. He argues ‘growth opportunities remain good within the highly fragmented markets in which we operate’ and house broker Brewin Dolphin sees pre-tax profits before exceptional items reaching £10.5 million in 2007-08, £15.3 million the following year and £17.4 million in 2009-10.
CareTech shares, which surged from 171pm to 637p between 2005 and 2007, now trade at 395p, valuing the company at £176 million.
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