Claimar, which local authority care services for the elderly throughout the Midlands and the North West, is seeing strong demand for its services as well as improved margins and earnings, in contrast with AIM rival Careforce, which recently surprised with a profits warning.

Chief executive Mark Hales conceded that the tightening of eligibility criteria by under-pressure local authorities had caused ‘a very small reduction’ in referrals, but curiously, referrals that do make their way to Claimar are now for 'longer periods' of care and bring 'better margins'. The company has also benefited from the Government’s movement of funds from South East authorities to ones in the Midlands and North West.

The news accompanied strong maiden results for a half to March in which Claimar, which floated with a £3.8m oversubscribed placing in January, grew existing contracts, won new ones and made earnings enhancing acquisitions. On turnover lifted 57% to approaching £6m, operating profits sparked up 59% to £590,000. Since the listing, Hales has completed two acquisitions, one during the half, the other more recent, with both fitting the profile in terms of size, price and geographical location. Hales says four further opportunities are under serious examination in a consolidating market.

Claimar looks a resilient, scalable operation, worth holding despite a recent dip in the share price.