Interim Results for the six months ended 31st March 2004

Company news

May 18, 2004

Six months ended 31 March 2004 2003
as restated (note 1)
£000 £000
Turnover 63,956 54,225
Operating profit * 6,232 3,790 **
Profit before tax * 4,420 2,044 **
Profit before tax 3,967 1,747 **
Undiluted earnings per share * 5.77p 2.78p **
Interim dividend per share 0.95p 0.90p

* before goodwill amortisation of £453,000 (2003: £297,000)
** after Revenue Investment in Development Projects of £2,152,000

Care UK, the specialist health and social care provider, announces interim results for the six months ended 31 March 2004

* Solid first half performance, strong growth
- Turnover up by 18%
- Contracts signed valued at £27 million p.a.

* Residential Care Services:
- Three new elderly care units opened in March as planned
- Hammersmith & Fulham and Croydon contracts signed, worth £6.6 million p.a.
- New preferred provider appointment in Birmingham

* Community Care Services:
- Turnover up by 23% (14% excluding acquisitions)
- New contract wins valued at £4.5 million p.a.
- Acquisition of Megacare in Lincoln in late 2003

* Trent ISTC contract signed in March 2004
- Ilkeston ISTC interim service fully operational since April 2004

Care UK has today separately announced the following:

* Plymouth ISTC contract signed by 50% joint venture

* Acquisition of Althea Park specialist psychiatric business for up to £5.1 million

John Nash, Chairman of Care UK, commented:

"Care UK has followed a strategy of working in partnership, through long term contracts, with the public sector for over 10 years. The Government's commitment to increased contracting with the private sector for health and social care provision is, therefore, very encouraging.

"The scale of opportunity arising from this change in market structure is substantial and is reflected in Care UK's current pipeline and growth prospects."