Companies: CFG   

Another recent health-orientated Company Watch recommendation is Mike Rogers’ domiciliary care provider Careforce, which we backed on the strength of long-term demographics and its experienced management. These factors are both still in place. However, maiden interims to January slightly disappointed since the figures showed losses of £612,000 despite a 44 per cent leap at the top-line to £8.2 million. This dragged the shares back to 142.5p, 6.5p below our recommendation price.
However, chief executive Rogers, who used to occupy the same role at Nestor Healthcare, points out most of the operating profit will be made in the second half, and he still aims to grow the business by selective acquisition. The first half was taken up with the group’s flotation, slowing the buy-and-build process. Additionally the group concentrated on investing in its Essex operation, where finding staff proved tricky, and margins were held back.
Annualised turnover is now £22 million, and Careforce has a minimum of £26 million of future sales already booked through block contracts with local authorities, which bodes well. Analysts are going for profits of £800,000 for the full year, burgeoning to £2.2 million the year after. On a p/e of 12.1 for 2006, we urge readers to buy.

Conister Financial Group	AIM	£11.1m	17.50p	-1.50p
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Other company articles:
Careforce			07/11/2006
Company Watch News			15/05/2006
Cuts hit Careforce			12/05/2006
Careforce			08/05/2006
Company Watch News			10/04/2006