Preliminary Results for the year ended 30 September 2009 | Care UK

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Preliminary Results for the year ended 30 September 2009

November 17th 2009

Care UK Plc

(“Care UK” or “the group”)

Preliminary Results for the year ended 30 September 2009

Adjusted profit before taxation increased by 25%, significant reduction in net debt

Platform established to benefit from market reform and accelerate future growth

Care UK Plc, the leading health and social care provider, today announces preliminary results for the year ended 30 September 2009.

 

Financial highlights

  • Revenue 1 increased by 20% to £410.0m (2008: £341.6m)
  • Adjusted 2 operating profit increased by 7% to £38.9m (2008: £36.4m)
  • Adjusted 3 profit before taxation increased by 25% to £28.1m (2008: £22.5m); profit before taxation £21.0m (2008: £1.6m)
  • Adjusted 3 basic EPS increased by 13% to 31.46p (2008: 27.92p)
  • Dividend per share, paid and proposed, increased by 10% to 4.85p (2008: 4.43p)
  • Net debt reduced by 13% to £156.3m (2008: £180.2m)
  • Forward contracted income of £1.4bn (2008: £1.5bn)

 

Operational highlights - Social Care

  • Aggregate revenue increased by 5% and adjusted operating profit reduced by 4%, with solid performances in Residential Care and Specialist Care offset by the ongoing recovery in Community Care
  • Across Social Care, CQC ratings for quality of service remain at industry-leading levels with almost 90% of services rated Excellent or Good
  • Two new residential care homes added 240 complex dementia care beds, increasing total beds by 7% to 3,533, with mature financial occupancy at 96% and average weekly fee rates up by 3.4% to £642. Contract signed for new 92-bed care home in Portsmouth; development approved for new 74-bed care home in East Sussex; further site acquisition agreed for 70-bed care home
  • Several new and renewed community care contracts awarded; total of 6.3 million hours of homecare delivered (2008: 6.2 million). Currently delivering 123,000 weekly hours of care
  • Several new and extended learning disabilities contracts won; total learning disabilities service user numbers increased by 17%. Mental health revenue increased by 9% with an improved operating margin. Good recovery in children’s services in the second half

 

Operational highlights - Health Care

  • Strong growth in revenue, up 54%, and adjusted operating profit, up 44%, driven by full ownership of PHG throughout the year and the implementation of new services
  • Established as largest independent sector provider of both primary and secondary care services to NHS patients with over 40 primary care sites and 9 specialist hospitals
  • Continuing to achieve exceptional clinical outcomes and patient satisfaction ratings across the division, with no cases of MRSA
  • Mobilisation of Phase 2 ISTC in Southampton (Oct ‘08) and Greater Manchester CATS service (Feb ‘09); volumes growing strongly for both services
  • Awarded 14 contracts during and post year-end, mainly under ‘Equitable Access’ initiative; services commenced under 11 contracts with balance to start in 2010

 

John Nash, Chairman of Care UK, commented:

“Over the course of a year, Care UK cares for approximately half a million people through many different kinds of service, consistently delivering industry leading quality and patient satisfaction ratings.

 “These results demonstrate the company’s resilience and the benefits of investment in the market emerging as the NHS opens up to competition. Our high levels of contracted revenue and the non-discretionary nature of our services offer unusually good income visibility and relative market stability.

“The forthcoming challenges to public sector funding are apparent and our experience and expectation is that to achieve higher quality services at better value, public sector commissioners are increasingly turning to the Independent Sector to drive efficiency and reform. Furthermore, both the UK’s largest political parties support the role that independent providers can play in helping to achieve this.

“Policy reform generally is focused on the migration of services from hospital to community and social care solutions in order to improve care quality and reduce cost. This is wholly aligned with Care UK’s long term strategy and perfectly positions the company to drive exceptional levels of long-term growth.”

Amounts in £m unless stated 30 Sept 2009 30 Sept 2008 Change %
Revenue: group and share of joint venture 1 410.0 341.6 +20
Operating profit 31.8 12.8 +148
Adjusted operating profit 2 38.9 36.4 +7
Profit before group taxation 21.0 1.6 +1,212
Adjusted profit before group taxation 3 28.1 22.5 +25
Basic EPS/(LPS) 23.04p (4.98)p  
Adjusted basic EPS 3 31.46p 27.92p +13
Total dividend, paid and proposed 4.85p 4.43p +9
Operating cash flow 58.1 46.9 +24
Total net debt 156.3 180.2 -13

1  Includes share of joint venture revenue in 2008 only
2  Before non-recurring items, amortisation of intangible assets and impairment charges; in 2008, also before share of joint venture net financing costs and taxation
3  Before non-recurring items, amortisation of intangible assets and impairment charges

 

For further information, please contact:

Care UK Plc 020 7330 8272
Mike Parish, Chief Executive  
Paul Humphreys, Finance Director  
   
Financial Dynamics 020 7831 3113
Ben Brewerton / Jonathan Birt

 

Click Here to view the full announcement.



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