Preliminary Results for the year ended 30 September 2007 | Care UK

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Preliminary Results for the year ended 30 September 2007

November 19th 2007

Highlights for the year

Year ended 30 September
Amounts in £m unless stated

2007

2006

% change

Revenue: group and share of joint venture

275.7

199.4

+38

Adjusted operating profit 1

30.4

22.5

+35

Operating profit

23.0

19.5

+18

Adjusted profit before taxation 1

20.1

15.7

+28

Profit before taxation

14.5

14.2

+2

Adjusted basic EPS 1

26.26p

21.47p

+22

Basic EPS

20.27p

18.02p

+12

Dividends:
Final proposed 2
Total paid and proposed


2.80p
4.02p

2.53p
3.65p

+11
+10

1Adjusted operating profit, adjusted profit before taxation and adjusted basic EPS are stated before integration & restructuring costs of £2.1m (2006: £nil), amortisation of intangible assets of £2.5m (£0.4m), Richmond property disposal profit of £nil (2006: £1.3m) and goodwill impairment of £nil (2006: £2.3m). Adjusted operating profit is stated before joint venture net financing charges and taxation of £2.8m (2006: £1.6m). Adjusted profit before taxation is stated before joint venture taxation of £1.0m (2006: £0.1m). The adjusting items are explained more fully in the Financial Review.

2 In accordance with IAS 10, the final proposed dividend was not included as a liability at either 30 September 2006 or 30 September 2007.

Another year of strong progress for Care UK, with continued growth in all four divisions.

  • Future growth underpinned by strong forward contracted revenue, now at £1.2bn� (2006: £0.9bn) excluding revenue from preferred bidder appointments
  • Social Care:
    • Residential Care:
      • Revenue growth of 15%, all organic, with underlying margin improvement
      • Two new homes successfully commissioned with a total of 147 beds
      • Two further contract awards in the year and a new greenfield development under construction
    • Community Care:
      • Strong revenue growth at 28%, operating profit improvement of 30%
      • Acquisition of new branches in Greater Manchester, Staffordshire and Kent
      • Good progress in developing and implementing outcome-based care services
    • Specialist Care:
      • Revenue and operating profit growth of 17%
      • Learning Disabilities contract wins in Cheshire and Stirling, renewed and extended important Essex contract
      • Significant strengthening of management team
  • Health Care:
    • Acquisition of Mercury Health in April 2007; operational integration successfully completed, financial contribution in line with expectations
    • Four "Wave 2" contracts proceeding including additional CATS contract in Manchester
    • Five contract awards/preferred bidder appointments within Primary Care
    • Continuing strong clinical and financial performance from PHG
    • West Midlands Diagnostics contract terminated from February 2008 due to change in assessment of capacity requirements

John Nash, Chairman of Care UK, commented:

"Care UK has established a firm business foundation with excellent visibility of future earnings through long-term contracts, a high level of income guarantees and the inherent continuity of essential services. The group's financial strength is further underpinned by strong cash flows and the value of its property assets.

We believe that Care UK continues to be well placed within its chosen markets and the scale, quantity and range of opportunities for both organic and acquisitive growth are compelling. The board is, therefore, confident that Care UK will maintain its strong performance during the coming years."

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