Results
Nestor Healthcare Group PLC
- 2009 Preliminary Results
· Nestor continued to make
good progress in 2009, evident in revenue and margin growth in Social Care, and
contract wins in Primary Care.
· Social Care delivered
excellent results with profits up 21% to £10.3m (2008: £8.5m) on revenue 2.4% up
at £107.0m (2008: £104.5m). Margins improved to 9.6% (2008: 8.1%) driven by
organic growth from the second quarter onwards and continued improvements in
quality and efficiency.
· As forecast, Primary Care
produced lower profits of £2.5m (2008: £4.3m) on revenues of £45.0m (2008:
£49.3m) as PCTs took two out-of-hours contracts back in-house in early 2009 and
before five contracts won under the government's Equitable Access to Primary
Care (EAPC) programme had begun to make a significant contribution. The profit
benefit of these GP led health centres, open seven days a week, 8am until 8pm,
will largely arise from 2010 onwards. Early results in terms of patient volumes
and service feedback are excellent. Tender activity continues at a high level
across a wide range of opportunities for the independent sector, including the
Dental Access Programme where Nestor has won its first
contract.
· Cash flow from operations
was strong at £8.9m (2008: £10.9m). Closing net borrowings were reduced to
£13.8m (year-end 2008: £19.0m).
· The group successfully
negotiated new four-year banking facilities with Barclays and
HSBC.
· Final dividend of 1.65p per
share (2008: 1.50p), bringing the total for the year to 2.15p, up
43%.
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