Caretech Share Discussion Threads

[nilip] 08/7/2011 10:31

Very disappointing news :-((

Thought there may be some 3rd party interest in this one but afraid that was pure speculation.

I was almost getting excited.

C'est la vie.

[topinfo] 08/7/2011 10:23

And that Im afraid is what happens when auto trades dont read the news properly?





DJ CareTech Holdings PLC Press Speculation and Commencement of Offer Period

TIDMCTH

RNS Number : 0491K

CareTech Holdings PLC

08 July 2011

CareTech Holdings PLC

("CareTech" or "the Group" or "the Company")

Press Speculation and Commencement of Offer Period

The board of CareTech, a leading UK provider of specialist social care services, notes the speculation in this morning's press and wishes to confirm that it has not received any approach regarding a possible offer for the Company.

The board confirms that it is undertaking a strategic review to assess the most appropriate way to enhance shareholder value. This review may include the evaluation of the viability of raising additional leverage to finance an offer for the business from CareTech's management. Any offer from management will be constrained by the availability of debt finance required to fund the offer.

The strategic review is at an early stage and a further announcement will be made in due course.

CareTech Holdings PLC 01707 601 800

[nilip] 07/7/2011 17:08

Fully expect to see us back above 200p soon.

[nilip] 07/7/2011 16:55

OMG !

Check out todays trades !

Volume and frequency of the trades today - not seen that for months - literally!

Indeed Aishah - reckon there's a bidder about for CTH and the premium to current share price could be huge imo.




Compare the above to any previous days trades going thru.

This one's starting to come alive again.

[aishah] 07/7/2011 16:37

Summat up? Look at the buying in the last half hour!

[bubbleandleek] 01/7/2011 13:23

I hold my hands up and admit i called this as a BUY at the wrong price....However the fundamentals still stand in my view and i feel sentiment is starting to turn here. They look very attractive at these levels and i expect a run back up to 160 very soon.

[aishah] 30/6/2011 16:19

That's some volume today - SCSW said in May that they expect a bidder to pop up before too long

[1nf3rn0] 29/6/2011 08:27

Collins Stewart starts Caretech Hldg PLC with buy rating 185P target price

[nilip] 24/6/2011 14:42

Holding RNS just out :

[nilip] 24/6/2011 14:12

I've added a few more on a Sept SB.

[ukinvestor220] 24/6/2011 12:59

why does that kenny keep bleating about poor ROCE - where are the calculations for this ?

[nilip] 24/6/2011 11:18

Someone had to pay a 3p premium just to buy 5k.

Looks like we've hit bottom.

[nilip] 24/6/2011 11:13

Over sold - simple as that imo.


3 year chart :





1 year chart :





I believe we're likely to see a pretty significant bounce from here ...

[boonkoh] 16/6/2011 22:02

As more with CareTech than it ever was with Southern Cross, the key is maintaining occupancy levels.

Southern Cross, despite all the media about the "sale-leaseback" model, failed because occupancy dipped below the break-even level, as management screwed up over the years. The quality of care in many homes dipped, and local authorities started to use better homes or demanded less fees. Private clients, of course, took their business to better quality homes.

With CareTech, the quality provided is even more important, as it only has 2% of the market and as they keep mentioning, is a highly fragmented market. This means the moment quality drops, councils have alternatives.

So with CareTech, the bet is very much on management able to run the homes at top notch quality while turning good profits. Not easy in a very fragmented and competitive market, and where there's pricing pressure from councils.

[doowle] 16/6/2011 13:04

Dangerously close to net debt/ebitda covenant though...

[nilip] 16/6/2011 08:53

I've recently taken a small holding - pricing pressures lately seem to have taken it's toll but I believe this could improve again on the back of sustained demand.

Bed occupancy shows demand is still relatively strong.

Company sounds confident of forward looking growth - looking forward to updates ...

[kenny] 16/6/2011 08:32

But real EPS indicate that the shares are still over-priced, even after the fall. For all the money deployed, they are earning very little for their investment. Therefore, they either overpaid for acquisitions or the business is suffering.

[nilip] 16/6/2011 07:55

CareTech Holdings PLC

("CareTech" or "the Group" or "the Company")

Interim Results for the six months ended 31 March 2011

CareTech Holdings PLC (AIM: CTH), a leading UK provider of specialist social care services, is pleased to announce its interim results for the six months ended 31 March 2011.

Highlights


-- Revenue increased by 26% to GBP52.2m (2010: GBP41.4m)

-- Adjusted EBITDA(i) increased by 7% to GBP10.2m (2010:
GBP9.5m)

-- Adjusted profit before tax(ii) increased by 3% to GBP6.7m
(2010: GBP6.5m)

-- Adjusted diluted earnings per share(ii) of 10.76p (2010:
11.39p)

-- Strong operating cash inflow before adjustment items of
GBP11.2m, with net debt of GBP121.9m at 31 March 2011

-- Overall capacity increased by 121 places to 1,930

-- Recent acquisitions have been successfully integrated within
our reorganised management structure

-- Interim dividend of 2.00p (2010: 1.84p) per share



Chairman's Statement

Introduction

The social care market has experienced unprecedented pressures in recent months. Public sector funding pressures together with quality issues and the financial models of some elderly care providers have led to a complex business environment. CareTech, with 87% of service users being looked after in good or excellent rated facilities, a predominantly freehold backed business model and outstanding reputation, is well positioned to deliver further growth in partnership with the users of our services and local authority commissioners.

Despite the current market issues CareTech has delivered improved turnover, EBITDA and PBT in line with Directors expectations.

Results

Group revenue of GBP52.2m (2010: GBP41.4m) is 26% higher than the corresponding period last year and has delivered adjusted EBITDA(i) of GBP10.2m (2010: GBP9.5m), representing growth of 7%.


...








Reading the above and looking at the chart it certainly looks like the CTH share price has been unduly slaughtered - looks like the market was expecting a disasterous performance - quite the contrary, this is still a very respectable preformance indeed.

[letsgetbizzay] 15/6/2011 16:29

Should see a nice run back to 150 on the back of tomorrows numbers

[nilip] 20/4/2011 08:00

Update sounds very reassuring and promising imo.

Significantly high capacity of beds and over 90% occupation - now that's impressive by any business standards, surely.

Share price just looks very over sold at current levels.

Company to focus on organic growth from here on - sounds like the right decision by management.

The fall from over 350p to the current level just looks a bit too harsh & ridiculous imo.

[bleunose] 19/4/2011 22:34

has it bottomed then

[cody11] 15/4/2011 23:47

I am new on this. Do you think the govt funding may resume and if yes to what level ? I do think that if this were the case, it looks interesting entry point.

[nilip] 13/4/2011 13:04

I've longed a few.

Fall looks way over done imo.

[envirovision] 06/4/2011 10:55

so why is this share so sick ?

[griffmg] 23/3/2011 07:32

Does anyone know if there are any banking covenants that kick in at about this level?

The two extensions yesterday might make a suspicious person think that a closing price below 1.50 was problematic.

'Smoke and Mirrors'? They certainly painted some ongoing costs as one offs which flattered the headline profits somewhat...