CareTech reports 'robust' end to financial year

Social care and education services provider CareTech reported a “robust” financial performance in line with market expectations for the financial year just ended on Thursday, as net debt was reduced to £259m.

The AIM-traded firm said that performance in the 12 months ended 30 September was underpinned by a “significantly-increased” new property portfolio valuation of its freehold and long leasehold at £930m, with leverage of 2.7x adjusted EBITDA.

It also announced the appointment of a new head of adult services and head of children's services.

Looking ahead, CareTech said it was continuing to pursue its organic growth initiatives, with seven new developments opened and eight properties purchased during the second half.

It also said it had a “strong pipeline” of bolt-on acquisition opportunities.

“CareTech performed well during the second half of the year with continuing good cash flow generation in the period,” said executive chairman Farouq Sheikh.

“The group enters the new financial year in a strong financial position and I remain confident in our outlook.

“We are delighted to welcome Nasir Quraishi and Jeremy Wiles to the newly created roles of group executive directors of adult services and children services respectively.”