CareTech Holdings

Social care services specialist CareTech Holdings reports 'significant growth' in the year to September and scope for more to come.

In an upbeat trading statement, the Hertfordshire-based AIM company says trading in the last financial year was both organic and stimulated by three acquisitions for a combined total of £16.1m.

CareTech, which made £6.8m pre-tax in 2008-09 on £83.4m turnover and turned an £821,000 loss into a £4.6m pre-tax profit in the first half of last year, increased care home capacity by 379 places and says occupancy rates are running at between 92% and 93%. The company acquired Uplands, a freehold mental health hospital in Hampshire, which executive chairman Farouq Sheikh sees as providing 'exciting opportunities' for extending CareTech's role in this sector.

During the last year, the company raised £15m in a share placing and arranged £165m bank funding to expand its specialist services, ending the year with net debt of £115m. CareTech looks well placed to continue progress and has the merit of paying dividends.

Recommended by Growth Company Investor at 303p last year, the shares now trade at 340p, up 7.5p this morning. Offering a yield of 1.6%, they should have further to go.