Domestic care provider Claimar is reaping the benefits of its £16.7 million acquisition spree as it reported a higher full year profits yesterday.

The Edgbaston firm said turnover had risen by 69 per cent in the 12 months to the end of September, and said its future prospects remained encouraging.

For the period to the end of September, the company posted pre-tax and pre exceptional profits of £2.13 million, compared with £1.35 million, as turnover r ose from £13.22 million to £22.32 million.

The company, which provides domiciliary care services to local authorities in the Midlands and the North West, proposed a final dividend of 0.5 pence against nothing a year earlier.

Chairman John Crabtree said initial trading for new financial year was in line with expectations and given the enlarged branch network, the company anticipates winning a number of contracts.

He said: "Claimar has built on its good start in 2006 to deliver a very strong set of financial results this year, with improvements in all key performance metrics, and particularly pleasingly, strong operational cash-flow.

"The prospects for the group continue to be encouraging despite budgetary pressures in some local authorities."

Mr Crabtree said Claimar Care was now achieving critical mass and this had been augmented by the acquisitions of SureCare, its franchise offering, and Primary Care Services, its training business.

Mr Crabtree added: "This is a very busy period for Claimar, responding to tender requests in anticipation of the new contract year in April 2008.

"Given our enlarged branch network we anticipate further successes in winning a number of these contracts."

He said the firm continued to look at consolidating its position in the fragmented domestic care market through further acquisitions.

The AIM-listed company had already spent £16.7 million on eight acquisitions during the year, while it also achieve organic growth of 13 per cent, to become one of the five largest providers in its sector.

Claimar now provides more than 50,000 hours per week in care, up from 26,000 hours at the beginning of the year.

Earlier this month it completed the £3.1 million acquisition of Complete Care, which allowed Claimar to specialist care services to victims of trauma.

This added another 30,000 hours of specialist care.

This growth has reduced Claimar's reliance on individual local authority work - where margins are being squeezed - with the largest local authority being responsible for six per cent of revenue, down from 16 per cent in September 2005.

Claimar said price increases in the market had been modest, averaging just over two per cent in the year, while the firm had seen budgetary pressures in some local authorities leading them to attempt to reduce prices charged through the re-tendering process.

Mr Crabtree said: "Since being admitted to AIM we have consistently stated that our strategy is to achieve growth both organically and by making selective acquisitions. The group continues to deliver in both these areas."

Chief executive Mark Hales added: "The group has continued its strong progress during the past year and is well placed for further profitable growth."