Caretech Holdings plc (LON:CTH) has announced a strong set of profit results, alongside a 10 percent increase of its dividend.
CareTech noted that revenue in the year to the end of March rose to £149 million from the £124.3 million the year previously. This in turn, lead to a boost in gross profit on last year’s £47.7 million to £54.3 million.
In addition, cost-saving exercises have led to a rise in operating profits, up to £30.5 million from £17.8 million. Ultimately, Pretax profit for the full year was 2.4 times higher than the £9.4 million reported in 2015.
In a statement, company Executive Farouq Shiekh said:
“With the money raised from shareholders last year, from the [GBP30.0 million] ground rent transaction this year and our own free cash flow generated from the business, we have major investment plans for 2017 and beyond with key new organic developments and bolt-on acquisitions,”
“Importantly, we have also, and continue to, further strengthen our management team, offering a forceful blend of experience, commercial wisdom and dedication to care. I have no doubt that the next few years will see continuing growth and care excellence which will help deliver our target of double digit growth in underlying earnings per share,” he continued.
Given the strong set of figures, the company has decided to increase its dividend to just over 10 percent to 9.25 p, up from the 8.40 p payout a year ago. According to the results, full year dividend ultimately increased by 11.6 percent to 6.25p.
Caretech was founded in 1993, and was floated on the London Stock Exchange in 2005. The company specialises in providing social care services, and is host to more than 250 specialist services across the UK.
Following the announcement, shares in the company have been up by 5.55 percent as of 1:24pm (GMT).