Healthcare provider Care UK announced a year of outstanding growth despite the loss of a multi-million pound Government contract in the West Midlands.
And chief executive Mike Parish yesterday said the company was in negotiations with the Government over compensation for the lost earnings.
The Government was accused of a massive U-turn after axing its £5.6 million contract with Care UK to run mobile diagnosis centres in the West Midlands - leaving taxpayers to foot a compensation bill that could run into the millions.
But Care UK still recorded successful results across the board. Revenue shot up nearly 40 per cent to £275.7 million, from under £200 million in 2006, earning the company pre-tax profits of £20.1 million, ahead 28 per cent.
The company saw strong growth across all of its four divisions. Its social care, community care and specialist care sectors all saw strong organic growth, with increases of 15 per cent, 28 per cent and 17 per cent respectively. But its health care division showed the strongest growth, following the acquisition of Mercury Health in April this year.
Revenue in Care's healthcare sector jumped from £18.4 million to more than £60 million in the last year, thanks to the increasing involvement of the private sector in providing NHS services.
"The acquisition of Mercury has repositioned us and made us more substantial in that sector," said Care chief executive Mike Parish.
"We have had a lot of contracts for work with hospitals, and you would expect over the next three to four years for the company to become more involved with healthcare.
"The NHS is such a huge organisation that the growth in that sector is looking pretty chunky.
"If you look at the projects they have carried out they are very substantial."
And he said the loss of the West Midlands mobile diagnosis contract had been a major blow to the company.
"We were a bit knocked back by the decision. In the coming year we were expecting a significant contribution from the contract.
"We are now just beginning discussion with the Department of Health about compensation."
Despite the problems with the Government contract, Mr Parish said he had been absolutely delighted with the growth shown by the company, and expected to see further expansion in the near future, both organically and acquisitively.
"The results are absolutely excellent. It was great to see strong growth across all four divisions."
Care has 11 care homes in the Midlands, as well as five Homecare agencies, one supported living facility and a mental health hospital in
It opened two new residential care homes this year, providing 147 beds, and signed contracts to open a further two.
It also opened new community care branches in Stafford-shire, Manchester and Kent, in addition to signing specialist contracts for dealing with learning disabilities across the country.
Care chairman John Nash said: "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."