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Caretech

August 2010

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • CTH
  • Price:
  • 354p
Caretech delivered solid interims in line with its April update. Revenues rose 5% to £41.4m while pretax profit increased 32% to £7.6m, helped by a 1.8% increase in operating margins to 22.4%. Eps rose 28% to 13.0p, while net debt was £80.8m. Caretech added another 50 beds organically while it also made three bolt-on acquisitions costing £11m, increasing bed capacity by 140 beds or c. 10% to 1620. These acquisitions were bought on an undemanding multiple of 6.5x EBITDA, falling to 5.5 in 20101. Collectively they bolster Caretech's supported living and children's services propositions, with the latter augmented by a move into the highly fragmented but growing foster care sector. Whilst local authorit ...

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Caretech - Exciting recovery share on forward PE of just 4.9 (June 2012)
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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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