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11 March 2010
Nestor Healthcare Group Plc (NSR:LSE), the provider of social and primary care, has released preliminary results for the year ended 31 December 2009.
Revenues were down from 163.3 million Pounds in 2008 to 152 million Pounds in 2009. Profit before tax fell from 30.4 million Pounds in 2008 to 7.3 million Pounds in 2009.
In social care revenues were up from 104.5 million Pounds in 2008 to 107 million Pounds in 2009. Operating profits in social care were equally up from 8.5 million Pounds in 2008 to 10.3 million Pounds in 2009.
In primary care revenues were down from 49.3 million Pounds in 2008 to 45 million Pounds in 2009. Operating profits in primary care were down from 4.3 million Pounds in 2008 to 2.5 million Pounds in 2009.
Nestor's Chairman, John Rennocks, said "the momentum of Social Care's volume growth has been sustained in the early months of 2010 and I expect this to continue despite the inevitable increased pressures on Local Authority budgets."
"In addition, the management team are ready to augment the business with a small number of carefully selected bolt-on acquisitions, a strategy the Board is keen to support. Longer term the demand for Social Care, particularly supporting people in their own homes, will be driven by the continuing demographic trends and the need for Local Authorities to find the most effective and economic service solution."
"There is little sign at the moment that the impending election is causing a hiatus in procurement processes as our Primary Care team remain busy in pursuing opportunities in our traditional out-of-hours business as well as health and GP centres and under the Dental Access Programme. The recent extensions of current contracts, and our improving record in winning new business, point to an increasingly positive outlook for Primary Care."
In early trading Nestor Healthcare's shares were up +4.08% to 51 Pence.