CareTech Ups Interim Dividend 15% As 1H Pretax Profit Increases

17th Jun 2010 07:32

LONDON (Dow Jones)--U.K. social care provider CareTech Holdings PLC (CTH.LN) Thursday increased its interim dividend 15% after first-half pretax profit rose 32%, and said it is looking to expand after buying three new businesses. Since the end of the first half, CareTech, which provides care and housing support services for people with learning and physical disabilities, said it has bought three businesses providing specialist social care services for an initial combined cost of around GBP11 million. The company said the acquisitions increase capacity by 140 places and are expected to add to earnings in the first full year of operation. Executive Chairman Farouq Sheikh added that, with GBP85 million of funds available due to a share placing and a recent refinancing, CareTech is ready to speed up its consolidation strategy. For the six months to March 31, CareTech posted pretax profit of GBP7.6 million compared with GBP5.7 million in the same period a year earlier. Revenue increased 5% to GBP41.4 million from GBP39.5 million, while the interim dividend was upped to 1.84 pence a share from 1.6 pence. CareTech added that it also increased capacity by 50 in the first half through organic growth and maintained occupancy levels of 93% in established services. -By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; [email protected] (END) Dow Jones Newswires June 17, 2010 02:32 ET (06:32 GMT)