|Claimar Care Group
||EPS - Basic
||Market Cap (m)
|Health Care Equipment & Services
Real-Time news about Claimar Care (London Stock Exchange): 0 recent articles
|the big fella: Dibbs
It is only a reaction to a drip of small sales and prevailing market sentiment. The share price was actually marked up following the announcement and there was a purchase of 200k.
I admit there were plenty of questions raised in the recent statement, and the future would be uncertain if no sale of all or part of the business prevails. A difficult one to call.|
|aishah: SCSW Comments:
Jul: We think it won't be too long before Mears or a private equity buyer steps in to avail of the low share price (17p). Await developments.
Aug: The shares (9p) look well oversold; speculative buy.|
|stemis: If the IC is correct then the debt is the killer here. Companies like Claimar (consolidating fragmented geographic markets) need the headroom to make tuck in acquisitions. Claimar hasn't because it has used up most of its debt capacity for the one big strategic step up. They should be funded solely from equity (with a bit more for working capital). However companies like Claimar always seem to think their shares are undervalued so they convince themselves that using debt is more earnings enhancing. It is on paper, but the market just de-rates the shares. Then when things don't go exactly to plan, the share price falls, funding raising becomes impossible and the strategy all becomes about paying down the debt.
I expect the share price to stagnate for the next couple of years. Just like ATCG (consolidating telecom systems) and PUG (consolidating the social work/teaching temp market). Both made the same mistake.
Shame really. I liked the sector.|
|joshalexander: The share price drop is way overdone IMO.
I am back invested as of last week, more than satisified that the future outlook here remains buoyant.|
|gac100: RNS Statement Re: Share price movement
"The Directors of Claimar have noted the sharp movement in the Company's share price and state that they know of no reason for this movement."
Confirms current year trading in line with expectations ...
... a nice dip to add a few on :-)|
|igoe104: Taken from growthcompany.
Domiciliary care services provider Claimar Care, originally recommended by GCI at 76.5p, is paying £33.1m in cash and shares for Complete Care and raising £23m at 137p to help finance the deal.
Telford-based Complete Care supplies full-time care to disabled people and represents Claimar's biggest acquisition since the company came to AIM in early 2006. The acquisition, which should enhance earnings in its first full year, takes the group into the higher value specialist area of complex care, the provision of which the NHS is increasingly looking to outsource rather than manage in house.
GCI remains a big supporter of Claimar, which continues to enjoy robust trading in its existing business. Acquisition opportunities remain compelling in a highly fragmented market and small recent deals have increased the number of local authorities for which the group acts to 43. The number of weekly domiciliary care hours it provides has moved to more than 49,000.
Chief executive Mark Hales is hugely excited about growth prospects in the home care provision sector. Government policy, the prevailing trend towards outsourcing and increasing regulation underpin opportunities.
For the year to September, investors should expect pre-tax profits of £2.2m from £22.7m of sales ahead of expected profits of £5.8m from £56.6m of sales by September 2008. During the current year, earnings are forecast to grow 44% to 8.5p, placing the shares on a forward multiple of 17.8 times. Considering the scope of the organic and acquisitive growth opportunity ahead, that's not too high a price to pay. Add.
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Market cap: £45.6m
PE Forecast: 17.8
Share price: 151.5p|
|igoe104: here you go josh.
Mears shrugs off 5 Live fuss
Cherry Reynard, 21/08/07 11:10
Housing repairs group Mears weathered controversy about practices in its Hackney and Islington branch to announce pre-tax profits up 23% for the first half of the year.
Mears chairman Bob Holt says allegations made in a recent BBC Radio 5 Live report were 'unfounded'. The report suggested that the Hackney and Islington branch of Mears had falsified completion and tenant satisfaction statistics for social housing repairs.
An independent investigation by The Housing Corporation's started on 6 August and will take several weeks.
The controversy did not dent revenue growth. Turnover was up 16% to £136.9m while pre-tax profits rose from £5.34m to £6.58m. Basic earnings per share were up 14.7% to 7.26p and the group raised the interim dividend 22.2% to 1.1p per share.
The order book has now increased to £1.24bn. The group has re-organised to focus on working with long-term partners. Its recent 15-year contract with Welwyn and Hatfield council is a good example and will be worth £168m to the group.
The group bought Careforce in March and has subsequently made three more acquisitions in the care home sector. Chairman Bob Holt said the care market is where the social housing market was five years ago. He added that the integration had gone well and he planned to use Mears' expertise in tendering and bid writing to improve the quality of Careforce tender submissions.
Finance director David Robertson is leaving the group next March. Holt said he planned to 'spend more time with his family'. While this has tended to be a euphemism for a murky departure, the long departure time suggests darker forces are not at work. Andrew Smith, who has been at the group since 1999, will take over.
Seymour Pearce rates the stock an outperform, saying: 'The social housing market remains strong and visibility for the group is excellent with 89% cover for 2008 revenues and 71% cover for 2009. The move into domiciliary care, through the acquisition of Careforce in March, may have unsettled the market since this is a step outside the pure social housing space. However, this activity will represent around 10% of full year revenues.'
The market has pushed the share price down from 377.75p at its peak in March to its current level of 272.5p, up 0.25p on the day, . This slide was a reaction to the Careforce purchase rather than the allegations of malpractice.
The successful integration of the Careforce purchase will undoubtedly have a more significant effect on long-term profitability.
Even if there is substance to any of the BBC 5 Live allegations, it is unlikely to have a material effect on profits. The group will, in all likelihood, simply be forced to examine some of its internal procedures and issue a few disciplinary notices.
The shares are currently trading on a P/E of 15.4x, not cheap but in line with the sector. The Government is promising more money for social housing and many of the companies with exposure to this area have been reporting strong earnings.
The care home business is also likely to be lucrative with demographics on its side. We are living longer but not healthier and burgeoning demand for quality care homes is likely to continue. As long as Mears manages its acquisitions smoothly, there could be more exciting growth from this stock.|
|igoe104: HERES THAT GROWTH COMPANY WRITE-UP.
Claimar Care - ADD
Claimar, the domiciliary care services company enthusiastically backed by GCI at 76.5p last year, has completed its ninth and biggest acquisition to date, paying £10.25m for Acorn Home Care.
This profitable business operates within the group's Midlands and North of England sweet spot and delivers more than 14,000 care hours per week from 14 branches, seven of which overlap with existing group branches. The acquisition, by far the largest since Claimar's debut on AIM in January 2006 and a deal financed through funds raised in a £7m March placing as well as increased bank facilities, takes the number of local authorities contracting with the group under long-term deals to 40, further enhancing earnings visibility.
Chief executive Mark Hales predicts margin benefits to rise through operational cost benefits and economies of scale, with good branch savings already identified. Though Claimar will have to invest to support contracts recently won by Acorn, the acquisition should boost earnings in the year to September 2008 and Hales remains in talks on further deals in a hugely fragmented sector consolidating around those larger players able to provide the care hours capacity demanded by local authorities, a trend squeezing out smaller players.
Following the deal, forecasts for the year to September from house broker Arden Partners remain unchanged, with pre-tax profits expected to swell from £1.3m to £2.1m. For 2008, investors might expect pre-tax profits of £3.3m, upgraded from £2.8m, and earnings of 7.7p, placing the shares on a 2008 multiple of 19.5, undemanding given growth rates and the scope for further savvy acquisitions. Add.
Market cap: £45.3m
PE Forecast: 26.4
Share price: 150.5p|
|kenmill: re-assuring AGM statement. With more acquisitions and contract wins to come this year the share price should climb further. Management ability to control the growing group is still the main concern|
|hedgehunter: From Growth Company Investor...
Claimar Care - HOLD
Claimar, which local authority care services for the elderly throughout the Midlands and the North West, is seeing strong demand for its services as well as improved margins and earnings, in contrast with AIM rival Careforce, which recently surprised with a profits warning.
Chief executive Mark Hales conceded that the tightening of eligibility criteria by under-pressure local authorities had caused 'a very small reduction' in referrals, but curiously, referrals that do make their way to Claimar are now for 'longer periods' of care and bring 'better margins'. The company has also benefited from the Government's movement of funds from South East authorities to ones in the Midlands and North West.
The news accompanied strong maiden results for a half to March in which Claimar, which floated with a £3.8m oversubscribed placing in January, grew existing contracts, won new ones and made earnings enhancing acquisitions. On turnover lifted 57% to approaching £6m, operating profits sparked up 59% to £590,000. Since the listing, Hales has completed two acquisitions, one during the half, the other more recent, with both fitting the profile in terms of size, price and geographical location. Hales says four further opportunities are under serious examination in a consolidating market.
Claimar looks a resilient, scalable operation, worth holding despite a recent dip in the share price.
Market cap: £17.3m
PE Forecast: n/a
Share price: 77.5p|
Claimar Care share price data is direct from the London Stock Exchange