CareTech (CTH) presents its first full-year figures after completing its £278.5m acquisition of Cambian Group in 2018. Like-for-like comparison of CareTech’s performance offers a better reflection of the social care provider’s year, in which it experienced 6 per cent revenue growth and a 1 per cent lift in cash profits.
The combination tilts CareTech away from its previous focus on adult care which made up two-thirds of turnover, with its child services business now accounting for 58 per cent of revenues. CareTech has delivered £3m in pre-tax profit synergies so far from its acquisition. Changes included the departures of key management personnel, including Cambian’s chief executive officer, chief financial officer and chief operating officer.
Christopher Dickinson, who is set to become CareTech’s group chief financial officer having spent the last year as Cambian’s CFO, said that the “easy” measures have been taken so far, and said that he expects CareTech to go “over and above” the £5m 2020 synergy target it set out for its acquisition.
House broker WH Ireland forecasts pre-tax profits and EPS of £57.1m and 41.9p respectively for the March 2020 year-end, rising to £62.1m and 45.6p in FY2021.
| CARETECH (CTH) | ||||
| ORD PRICE: | 392p | MARKET VALUE: | £ 438m | |
| TOUCH: | 387-399p | 12-MONTH HIGH: | 405p | LOW: 310p |
| DIVIDEND YIELD: | 3.0% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 300p* | NET DEBT: | 87%** | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 124 | 9.4 | 13.8 | 8.4 |
| 2016 | 149 | 22.5 | 36.2 | 9.3 |
| 2017 | 166 | 16.8 | 25.5 | 9.9 |
| 2018 | 186 | 15.4 | 14.1 | 11.0 |
| 2019 | 395 | 24.3 | 18.4 | 11.7 |
| % change | +112 | +58 | +30 | +6 |
| Ex-div: | 05 Mar | |||
| Payment: | 06 May | |||
| *Includes intangible assets of £159.8m, or 143p a share **Excludes lease liabilities of £72m | ||||
