LONDON (Alliance News) - CareTech Holdings PLC Thursday declared a higher interim dividend as it reported a rise in pretax profit in the half year to end-March.
The social care services provider proposed an interim dividend of 2.60 pence, up from 2.32 pence.
The company posted a pretax profit of GBP5.6 million in six months to March 31, up from GBP3.4 million year earlier, as revenue rose to GBP61.5 million from GBP56.6 million.
CareTech said it has continued to invest in its systems and operating structure. Having analysed demand trends over the past two years, it said it is establishing two new care services. It also will add two new properties into a new care service. It is reconfiguring a school and a further five care homes to meet the demand and requirements of UK care-quality commissions, and it expects this reconfiguring to be completed in the next financial year.
CareTech acquired the majority of business and assets of Elmfield Training in November 2013 as Elmfield went into administration. When it acquired the business it was aware that it required a turnaround. CareTech said this process is now well under-way, and it expects the Elmfield business to show modest earnings before interest, tax, depreciation and amortisation in the first 11 months to September 2014.
It continued to bolster its management structure, appointing new senior roles during the year. It also introduced a new care system for its Foster Care services that recently went live and will be launched a new Time and Attendance system across its residential services over the coming months.
"The continued provision of first-class social care, which represents good value and is focused on successful client outcomes, will remain the main market driver for CareTech's continuing growth," Chairman Farouq Sheikh said in a statement.
Shares in CareTech were trading up 1.0% at 260.15 pence Thursday afternoon.