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CareTech ends year 'slightly ahead' of market expectations
7th Dec 2021 09:11
(Sharecast News) - Social care and education services provider CareTech described a "robust" financial performance slightly ahead of market expectations on Tuesday, with full-year revenue increasing 13.8% to £489.1m.
The AIM-traded firm said underlying EBITDA was ahead 10.5% for the 12 months ended 30 September at £100.5m, while underlying profit before tax rose 14.6% year-on-year to £68.3m.
Underlying basic earnings per share were 13.3% higher at 47.87p, and statutory basic earnings per share increased 25.9% to 28.80p.
CareTech said its net debt reduced to £258.7m, underpinned by a "significantly increased" new property portfolio valuation of its freehold and long-leasehold at £930.0m in October, with leverage of 2.7x adjusted EBITDA.
The board Increased the final dividend by 8.6% to 9.5p, taking the total dividend for the year to 14.1p, up from 12.75p for the 2020 financial year.
"I am particularly pleased to report another strong set of results, which are slightly ahead of market expectations," said group executive chairman Farouq Sheikh.
"This performance continues to validate our belief that we have a well-executed strategy, which meets a critical social care need and has demonstrated resilience in a challenging market environment.
"Our fundamentals are strong, and we remain committed to providing high quality care to those we look after."
Sheikh said CareTech had entered its new financial year in a "positive financial position", underpinned by a "significant" property portfolio and strong cash generation.
"Alongside our successful growth initiatives and strengthening of the operational leadership team, the group continues to see an active pipeline of bolt-on acquisition opportunities, growth in the Gulf region and exciting opportunities to develop our digital technology division."
At 0947 GMT, shares in CareTech Holdings were down 0.45% at 567.46p.
The AIM-traded firm said underlying EBITDA was ahead 10.5% for the 12 months ended 30 September at £100.5m, while underlying profit before tax rose 14.6% year-on-year to £68.3m.
Underlying basic earnings per share were 13.3% higher at 47.87p, and statutory basic earnings per share increased 25.9% to 28.80p.
CareTech said its net debt reduced to £258.7m, underpinned by a "significantly increased" new property portfolio valuation of its freehold and long-leasehold at £930.0m in October, with leverage of 2.7x adjusted EBITDA.
The board Increased the final dividend by 8.6% to 9.5p, taking the total dividend for the year to 14.1p, up from 12.75p for the 2020 financial year.
"I am particularly pleased to report another strong set of results, which are slightly ahead of market expectations," said group executive chairman Farouq Sheikh.
"This performance continues to validate our belief that we have a well-executed strategy, which meets a critical social care need and has demonstrated resilience in a challenging market environment.
"Our fundamentals are strong, and we remain committed to providing high quality care to those we look after."
Sheikh said CareTech had entered its new financial year in a "positive financial position", underpinned by a "significant" property portfolio and strong cash generation.
"Alongside our successful growth initiatives and strengthening of the operational leadership team, the group continues to see an active pipeline of bolt-on acquisition opportunities, growth in the Gulf region and exciting opportunities to develop our digital technology division."
At 0947 GMT, shares in CareTech Holdings were down 0.45% at 567.46p.