Expanding disability care service supplier CareTech Holdings - which has recently made two major acquisitions in the Midlands - has reported a huge boost in earnings and pretax profits.
The Potters Bar-based business said first-half earnings before interest, tax, depreciation and amortisation jumped 75 per cent to £1.8 million on turnover that rose 26 per cent to £13.3 million
CareTech, reporting its maiden interim results since listing in October 2005, also said pretax profit increased 95 per cent to £1.2 million in the six months to March 31 and it achieved overall occupancy levels of 90 per cent.
In May The Birmingham Post reported how the business had snapped up West Bromwich-based Lonsdale (Midlands), a provider of specialist services for adults with learning difficulties, for £15 million
That came on the heels of the £8.1 million acquisition of Stoke-based Delam Care, a residential care services provider for adults and children with mental and learning disabilities.
Yesterday chairman Farouq Sheikh said: "The company has made significant progress with its organic growth initiatives and following the completion of the two major earnings enhancing acquisitions post half year end is well positioned to deliver incremental earnings growth."
The company said the the acquisitions had increased capacity from 423 beds to 735 and Mr Sheikh added the business is developing strongly and according to plan.
He said: "While the acquisitions have provided a significant base in the Midlands, it is also pleasing to note that the company has continued to grow organically through property purchases and by expanding existing services.
"Other developments in the year to date are the purchase of 12 properties, representing 79 beds, of which eight properties are in Essex and the remaining four in London and the Home Counties, where CareTech already has a strong presence."
CareTech said it does not intend to pay a dividend.
The Lonsdale operation provides services including residential and nursing care, supported living schemes and day care facilities.
The acquisition is being integrated with CareTech's existing 23 homes in the West Midlands.
A spokesman said the company had been historically been strong in the South-east but had since worked hard to increase its presence throughout the Midlands.
Shares closed 21 up at 247p.