Behavioural health specialist Cambian (CMBN) had timing on its side when it floated last April. Even as the NASDAQ biotechnology index started to slip in March, Cambian set itself the modest target of raising £20m, marking the first care-home float in London since the collapse of Southern Cross five years ago.
That precedent is ominous, but these half-year numbers paint a picture of robust growth. The company divides its operations into two divisions - adult services and children's services - and both posted double-digit top-line gains for the first half. The average occupancy rate rose to 81 per cent (2013: 79 per cent), with 2,237 patients at the end of the period (June 2013: 1,837). Capacity increased by 354 places, 285 of which came from acquisitions.
As this makes clear, acquisitions form a major part of Cambian’s growth strategy. Chief executive Saleem Asaria says Cambian is the “buyer of choice” in what continues to be “a highly-fragmented market”. During the period, Cambian bought three further education colleges from Mencap, as well as a day school for autistic children for £8m in total.
Brokerage Numis expects pre-tax profits of £20.3m for 2014, giving EPS of 8.8p. Mr Asaria confirmed that the group aims to pay a final dividend worth no less than £3m in total.
| CAMBIAN GROUP (CMBN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 220p | MARKET VALUE: | £ 379m | |
| TOUCH: | 220-223p | 12-MONTH HIGH: | 249p | LOW: 195p |
| DIVIDEND YIELD: | Nil | PE RATIO: | 220 | |
| NET ASSET VALUE: | 131p* | NET DEBT: | 58% | |
| Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 105 | 1.2 | 2.5 | nil |
| 2014 | 116 | -11.8 | -12.6 | nil |
| % change | +10 | - | - | - |
*Includes intangible assets of £86.5m or 50p per share | ||||
