Preliminary Results for the year ended 30 September 2006

Company news

Nov 20, 2006

Highlights for the year

¹ Adjusted operating profit is stated before the Richmond property disposal profit of £1,340,000 (2005: £nil), amortisation of other intangible assets of £409,000 (2005: £136,000), goodwill impairment of £2,272,000 (2005: £nil) and joint venture net financing charges and taxation of £1,594,000 (2005: £448,000).

² In accordance with IFRS, the final proposed dividend was not included as a liability at either 30 September 2005 or 30 September 2006.

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Another year of excellent progress for Care UK, with continued strong growth in all four divisions and further margin improvement

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Residential Care:

• Revenue growth of 16%, improved operating margin


• Three new management contracts awarded in Redbridge, Windsor & Maidenhead and West Berkshire


• Two new-build homes and two home extensions successfully commissioned

Community Care:

• Strong revenue growth at 22%, including 18% organic growth, operating profit improvement of 36%


• Acquisition of new branches in Fleetwood, Birmingham and Surrey

Specialist Care:

• Revenue growth at 12%, including 8% organic growth


• Learning Disabilities contract wins in Glasgow, Staffordshire and Stoke


• Acquisition of two independent hospitals for specialist psychiatric rehabilitation


• Acquisition of two urban-based children's residential care businesses

Clinical Care:

• Breakthrough contract wins in primary care and diagnostics


• Commissioned new services in Newcastle, Barking & Dagenham and Luton


• Strong service and financial performance from PHG

Total forward contracted revenue at £914m

• Residential Care £647m


• Community Care £75m


• Specialist Care £49m


• Clinical Care £143m

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Potential freehold/long leasehold property portfolio surplus over net book value in excess of £100m

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John Nash, Chairman of Care UK, commented:

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The markets that Care UK serves are substantial and the momentum toward greater levels of independent sector participation continues unabated. Financial pressures within both Primary Care Trusts and Local Authorities are significant, but by providing better value solutions we expect to make further good progress despite those pressures. With a strong base of contracted income and substantial new contracts in the commercial and construction phases we are assured of continued good growth during the short and medium terms. Beyond this, the Board is confident in the range and scale of opportunity and in Care UK's capability to prosper in this growing market.

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