Cambian 2016 interim results

DividendMax Ltd.

Cambian 2016 interim results

Financial

Revenue growth of 14% to £160.0m (2015 H1: £140.9m) from increased occupancy.

Adjusted EBITDA of £22.0m reflects strong recovery over the prior six months (2015 H2: £15.9m) from increased revenue and operating efficiencies.

Exceptional items of £6.4m being primarily financial restructuring costs.

Finance costs have increased as a result of agreed amendment of the bank facilities.

Price negotiations with commissioners regarding National Living Wage progressing satisfactorily.

  Operational 

Maintained key focus on maturing existing portfolio with total capacity of 2,942 places, with a net reduction of 47 places since the year end in line with plan.

o Children's Services capacity at 1,790

o Adult Services capacity at 1,152

Increased occupancy from referrals, backed by high quality regulatory ratings.

o Children's Services average occupancy at 75% (2015 H1: 74%; 2015 FY 73%)

o Adults Services average occupancy at 90% (2015 H1: 87%; 2015 FY: 87%)

Continued progress made in the remediation of financial and administrative processes.

Christopher Kemball, Chairman, commented:

"The Group is benefitting from the remedial actions which we have taken with both our Children and Adult Services divisions, delivering a good first half performance compared to the second half last year. Our focus on maturing the existing portfolio is progressing well and we are seeing an increase in both occupancy levels and demand for our services.

"We are pleased with progress in our core Children's Services business where we see further opportunities ahead. We are close to concluding our review of strategic options to ensure the optimal future shape for the business and expect to make an announcement in due course.

"The second half has started well and the business is performing in line with the Board's expectations."

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