CareTech Holding (CTH)

Sector:

Health Care

Index:

FTSE AIM 50

378.00p
   
  • Change Today:
    -2.00p
  • 52 Week High: 405.00
  • 52 Week Low: 325.00
  • Currency: UK Pounds
  • Shares Issued: 111.69m
  • Volume: 12,892
  • Market Cap: £422.19m
  • RiskGrade: 99
  • Beta: 0.39

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CareTech revenues grow following Cambian acquisition

By Iain Gilbert

Date: Wednesday 01 May 2019

LONDON (ShareCast) - (Sharecast News) - Social care and education services business CareTech traded in line with expectations throughout the first half of the year, turning in a "substantial increase" in revenue and EBITDA driven by its acquisition of Cambian.
CareTech turned in a performance ahead of the same period a year earlier on Wednesday, with EBITDA margins in line with market expectations in its core business and a "considerable improvement" on the same margins at Cambian.

The AIM-listed outfit told investors on Wednesday that its integration plan for the combined business was "well underway" following the unconditional clearance issued by the Competition and Markets Authority on 8 February and confirmed that synergies of at least £3m worth of pre-tax profits in the first full year since acquisition were on track to being delivered.

CareTech more than doubled its net debt to £297.5m in the half, reflecting the cash consideration and associated financing necessary for its Cambian acquisition.

Chairman Faros Sheikh said: "I am pleased to report that CareTech's trading performance for the half year is in line with market expectations. The integration of Cambian is well underway and we are delivering all of our key objectives, including the delivery of the synergies we set out in our plan."

Elsewhere, analysts at Liberum retained their 'buy' rating and £5.25 target price for CareTech, saying the firm was "far too cheap".

Liberum's Graham Doyle said: "The market doesn't believe the 55% EPS growth, the 60% NAV uplift or the 33% de-leveraging that we forecast by 2022.

"Delivering this should be rewarded and today's trading update is another data point that provides confidence that management will do just that. If the market does not reward this then we see scope for management to return up to 40% of the market cap in cash to shareholders over the same period given the underappreciated strength of the balance sheet."

As of 1030 BST, CareTech shares were flat at 333p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

CTH Market Data

Currency UK Pounds
Share Price 378.00p
Change Today -2.00p
% Change -0.53 %
52 Week High 405.00
52 Week Low 325.00
Volume 12,892
Shares Issued 111.69m
Market Cap £422.19m
Beta 0.39
RiskGrade 99

CTH Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
63.00% above the market average63.00% above the market average63.00% above the market average63.00% above the market average63.00% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Price Trend
19.23% above the market average19.23% above the market average19.23% above the market average19.23% above the market average19.23% above the market average
15.79% above the sector average15.79% above the sector average15.79% above the sector average15.79% above the sector average15.79% above the sector average
Income
22.36% above the market average22.36% above the market average22.36% above the market average22.36% above the market average22.36% above the market average
86.67% above the sector average86.67% above the sector average86.67% above the sector average86.67% above the sector average86.67% above the sector average
Growth
37.93% below the market average37.93% below the market average37.93% below the market average37.93% below the market average37.93% below the market average
58.82% below the sector average58.82% below the sector average58.82% below the sector average58.82% below the sector average58.82% below the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 2
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

CTH Dividends

  Latest Previous
  Interim Final
Ex-Div 24-Oct-19 07-Mar-19
Paid 21-Nov-19 08-May-19
Amount 3.75p 7.50p

Trades for 06-Dec-2019

Time Volume / Share Price
10:38 1,123 @ 373.04p
10:05 30 @ 378.00p
10:05 59 @ 378.00p
10:05 226 @ 378.00p
10:05 25 @ 378.00p

CTH Key Personnel

CEO Haroon Sheikh

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