Updates

Caretech - Returns to acquisition trail

June 2008

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Caretech has acquired Beacon, adding a further 111 learning disability beds and 16 freehold homes in the South East. The maximum consideration is Â£22.5m of which Â£18.6m is paid upfront and is mostly in cash, with Â£3.9m based on future performance. It takes overall borrowings for Caretech to Â£99m, leaving Â£21m headroom on existing bank facilities. The acquisition adds roughly 10% to the bedcount. Brewin Dolphin forecasts eps of 21.4p for the current year to end September and reflecting the fact that the acquisition is expected to be eps enhancing in its first full year, next year's forecast rises 8% to 26.4p. We think Caretech will pleasantly surprise on these forecasts; keep on buy list ...

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Caretech - Exciting move into psychiatric care (July 2009)

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Caretech - H1 margin surges to 22.9% as operational gearing kicks in (July 2008)

Caretech - Operational gearing comes barrelling through (May 2008)

Caretech - Well ahead of original expectations (January 2008)

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Caretech (September 2007)

Caretech - 1,500 bed target (July 2007)

Caretech (January 2007)

Caretech - Buys 13 new care homes (December 2006)

Caretech - Seems likely to be trading ahead (November 2006)

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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