19 June 2017 – interim results/acquisition
The provider of specialist social care services has announced its interim results covering the six months to 31 March and these have shown further growth with revenues rising by over 11% to £78.8m and underlying pre-tax profits increasing by 13.9% to £13.1m. Diluted earnings per share on the same basis were 11% higher at 16.37p and the interim dividend was raised by 10% to 3.3p. At the end of the period net debt was £122.5m down from £156.4m a year earlier helped by a share placing in March which raised £37m. These are clearly good results and the group has also announced that it is paying £16.9m to acquire Selborne Care Ltd, a business based in Droitwich in Worcestershire. The latter provides specialist residential care and other services and will strengthen the group’s operations in the Midlands and South West. Although prospects for further growth look good the strong run in the share price means that we reduce our recommendation to HOLD.