Caretech Holdings PLC (CTH) 2020年年度報告「AIM」.pdf

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1、Annual Report and Accounts 2020Extraordinary daysevery dayStrategic Report1 Financial and Operational Highlights3 CareTech At A Glance5 Purpose in Action18 Group Executive Chairmans Statement22 Group Chief Executive Officers Statement and Performance Review28 Our Market33 Our Strategy and KPIs 36 Ou

2、r Key Performance Indicators38 Our Business Model42 Our Approach to Business50 s172(1)Statement by the Directors51 Principal Risks and Our Strategic Response 53 Group Financial Review57 Longer-term Viability StatementGovernance58 Corporate Governance Report60 Board of Directors66 Care Quality and Go

3、vernance Report69 Directors Report 72 Directors Remuneration Report78 Statement of Directors Responsibilities Financial Statements79 Independent Auditors Report to the Members of CareTech Holdings PLC86 Consolidated Income Statement87 Consolidated Statement of Comprehensive Income88 Consolidated Sta

4、tement of Financial Position89 Consolidated Statement of Changes in Equity90 Consolidated Statement of Cash Flows91 Notes to the Financial Statements124 Company Statement of Financial Position125 Company Statement of Changes in Equity126 Notes to the Company Financial Statements130 Appendix Alternat

5、ive Performance Measures132 Directors and AdvisersContents2020 Financial and Operational HighlightsRevenue430.0mIncreased by 8.9%(2019:395.0m)Underlying EBITDA(i)84.1mIncreased by 14.4%(2019:73.5m)Post IFRS 16:90.9mUnderlying profit before tax(ii)60.5mIncreased by 20.6%(2019:50.2m)Post IFRS 16:59.7m

6、Underlying basic earnings per share(ii)43.02pIncreased by 14.4%(2019:37.6p)Post IFRS 16:42.26pOperating profit 51.8mIncreased by 31.1%(2019:39.5m)Post IFRS 16:53.4mDiluted earnings per share22.76pIncreased by 24.3%(2019:18.31p)Post IFRS 16:22.03pNet cash inflows from operating activities(v)87.4m(201

7、9:66.3m)Post IFRS 16:94.2mProperty portfolio valuation(iv)774m With net debt(iii)of 268.9mFinal dividend per share8.75pIncreased by 10.1%(2019:7.95p)Operational HighlightsQualityCQC Group 91%(2019:95%)Ofsted Group82%(2019:82%)Capacity4,984 placesAdults Services1,997places(2019:1,968 places)Childrens

8、 Services1,959places(2019:1,933 places)Fostering1,028places(2019:1,178 places)Employee retention75%(2019:74%)Cambian on trackContinued to see margin enhancement,improved quality ratings,increased staff retention leading to increased occupancy levels.Synergies delivered of over 5m.Acquisition of Smar

9、tboxAssistive technology is the means to unlocking the digital world to millions of disabled people and those with complex needs without speech.Investment in AS GroupThe Group completed its first investment outside the UK in the MENA region.*Results in this section are presented for the year ended 3

10、0 September 2020 on a non-statutory illustrative basis excluding the impact of IFRS 16 Leases to enable comparison with 2019 performance.(i)EBITDA is operating profit stated before depreciation,share-based payments charge and non-underlying items(see note 6).(ii)Underlying profit before tax and unde

11、rlying basic earnings per share are stated before non-underlying items.(iii)Net debt comprises cash and cash equivalents net of all loans and borrowings(see note 26).(iv)September 2018 market value of CareTech property portfolio of 424m and Cambian 350m.(v)Cash flow from operations before non-underl

12、ying items and tax(and excluding capex)(see page 90).CareTech Holdings PLCAnnual Report and Accounts 20201Strategic ReportGovernanceFinancial StatementsWho we areOur Adults Services support people with learning disabilities,individuals who have or are recovering from mental illness,people with autis

13、tic spectrum disorder,individuals who have one or more physical impairments and provide care and rehabilitation for adults with acquired brain injury(“ABI”).We deliver services in residential,day care and a wide choice of creative supported living settings.Our Childrens Services nationally recognise

14、d for their expertise cover assessment,residential care,education and fostering options.We specialise in supporting children and young people with very complex needs including those with challenging behaviours,sexually offending behaviours,or who have emotional and behavioural disorders.We carefully

15、 and professionally support any child irrespective of their need for being in social care and comprehensive high quality services include the UKs largest portfolio of specialist schools and colleges.CareTech has pioneered outcomes and progression along the Care Pathway including transition services

16、for young people leaving care and for adults who are making the move into their own home after a lifetime in residential or institutional settings.We are accelerating digital adoption within the Group and blending care and technology in new meaningful ways so even service users with the most complex

17、 of needs can participate and flourish in society.Our large and diverse frontline workforce includes qualified and skilled care workers,foster carers,teachers and managers,and clinical therapeutic teams,who are assisted by highly professional back office and support staff collectively the CareTech f

18、amily.Their care,commitment and dedication is critical to the success of CareTech in delivering extraordinary days every day for our service users.Sites across the UK550+People 10,500+Local authorities across England,Scotland and Wales300+United Arab Emirates Registered officesOne of CareTechs highl

19、y qualified Specialist Services teams,the Oakleaf Group.Group CEO Haroon Sheikh and his brother,Group Executive Chairman Farouq Sheikh,with their children Hamza and Aleena Sheikh to celebrate the launch of the CareTech 25thAnniversary book.The book charts the development of the company since its inc

20、eption in 1993,and speaks to all of the key employees who have contributed to its success throughout the years.CareTech Holdings PLCAnnual Report and Accounts 20202CareTech At A GlancePurpose is at the heart of everything we doWe enable children,young people and adults with complex needs to gain ind

21、ependence.With our person-centred support each individual progresses to live,work,learn and engage within their communities.They are encouraged to achieve the best possible outcomes throughout their daily life.We deliver on this purpose by providing Extraordinary Days Every Day to individuals in our

22、 care.A powerful shared purposeCareTech set out 26 years ago with a vision to provide loving homes and high quality care for people needing specialist support.From these foundations we have a clear purpose today which unites every one of our services.We share commitment to our purpose,and the belief

23、 that children,young people and adults with complex needs and disabilities should have the opportunity to live their best life:to live,learn,work and engage in their communities.This desire to create better lives for people with complex needs has powered a successful business model and amazing outco

24、mes for those for whom we care.Our family-oriented approach offers the support needed for people to make their own life choices and to enjoy their own personal version of independence,giving them a place to call home and people to call family,as well as meeting their practical,physical and psycholog

25、ical needs.This focus on purpose remains at the heart of the Groups success and is a powerful motivator for every one of us,every day.The inspirational progress that we see in adults,children and young people in our care is a constant reminder of what we can achieve together as a family.The recent a

26、dditions of Purple and Smartbox to the Group give us the opportunity to increase significantly the reach of our purpose as we focus on breaking down barriers and enabling independence for people with disabilities.As the global pandemic has clearly demonstrated,humanity is reliant on the responsibili

27、ty and co-operation of global citizens and business.We believe the role of business is clear and its increasingly apparent that a robust and bold approach to sustainability and responsible business will protect the future of the Group,in addition to the future of all the people we serve.In 2021 we w

28、ill develop a strategy to enable us to act on this belief,reducing our environmental impact,increasing visibility of our positive social impact and enabling us to report our ESG performance for a brighter future for all the CareTech family.Haroon SheikhGroup Chief Executive Officer CareTech has expa

29、nded our services into the Middle East and North Africa(MENA)to assist families who are navigating the complex needs of their children.CareTech service users enjoy a variety of activities and are encouraged to pursue their interests,from art to music and gardening.CareTech Holdings PLCAnnual Report

30、and Accounts 20203Strategic ReportGovernanceFinancial StatementsWe enableto live their best liveschildren andyoung peopleTwo boys from Spark of Genius residential care in Scotland enjoy an outdoors building activity in local woods.CareTech Holdings PLCAnnual Report and Accounts 20204Purpose in Actio

31、n:Childrens ServicesResidential CareOur specialist residential homes cater for a range of vulnerable children who have or are:Complex social,emotional and mental health needs.Specialist mental health needs.Suffered from sexual exploitation.Experienced complex trauma.Learning difficulties and disabil

32、ities.Deaf or significantly hearing impaired.We are committed to:Enhancing childrens life chances by protecting them from abuse and neglect.Providing children with a secure base,safety and stability to enable their progression back to a family environment.Providing clinical and therapeutic intervent

33、ion to enable children to process trauma and equip them to lead successful lives.Childrens Services care capacity1,959Educational ServicesOur core objective is to guarantee every child and young person in our care achieves the very best they can to maximise their rich potential in life,learning and

34、work.We provide support to young people with:Autistic spectrum disorders.Asperger syndrome.Moderate or severe learning difficulties and disabilities.Complex trauma.Social,emotional,mental health needs(SEMH).Our dedicated multi-disciplinary,specialist clinical and therapeutic teams ensure our childre

35、n and young people receive the highest levels of care,support and education required to make positive progress.The Groups education services are subject to rigorous operational statutory regulation with compliance measured and audited by Ofsted(England),Care Quality Commission(England),Care Inspecto

36、rate(Wales)and Education Scotland.Specialist schools for children aged 7 to 2547Children1,000+Foster CareMany foster children lack the positive family experience that most children have,but all it takes is one foster parent to make that difference.Our aim is to ensure the children and young people w

37、e care for have safe,stable and happy family-based experiences in order that they can go on to lead fulfilling lives as adults.Every child in our care is unique and all have widely different needs.We offer training and support to help our foster parents work out the best kind of parenting for their

38、foster child.Fostering capacity1,028We offer a range of services that provide both residential and non-residential care services to children and young people with varying degrees of care needs.We are proud of our reputation of being able to take on the most challenging and complex cases.Alex,9Advers

39、e childhood experience,Post-traumatic stress disorderAlex beats the national average in maths despite his traumatic childhood experiences of domestic abuse and neglect,and rejection from schools.Alex arrived in our complex trauma service when he was nine years old.Both of his parents had been drug u

40、sers.During his early childhood he had experienced abuse,acute neglect and had been part of a domestically abusive family environment.When admitted to the service,he had an incredibly high ACE(Adverse Childhood Experience)score.His experiences were exhibited in his behaviours that had resulted in hi

41、m experiencing six foster family breakdowns before he came in to our care.When admitted to the service,Alex was highly aggressive and had minimal self-care.He showed symptoms of PTSD and had experienced numerous school changes and was under-performing academically.We provided Alex with a safe,nurtur

42、ing environment.The team looking after him worked in a child-centred approach and parented him in a way he had not previously experienced.For perhaps the first time,he had structure,boundaries and safety.Following initial assessments to inform a therapeutic framework and a clinical care plan,Alex re

43、ceived psychotherapy and drama therapy from our clinical team.This intervention enabled him to process his trauma,build resilience and coping mechanisms.Alex attended a mainstream school,increased his attendance levels and,from a low starting point,progressed to achieve his targets in English and Sc

44、ience and exceeded the national average attainment in Maths.He has now transitioned to a foster family and is thriving.For perhaps the first time in his life,Alex had structure,boundaries and safety.CareTech Holdings PLCAnnual Report and Accounts 20205Strategic ReportGovernanceFinancial StatementsWe

45、 enableto gain independenceadultsA gentleman at a CareTech Specialist Service creates a poppy mural for Remembrance Sunday as part of his rehabilitation.CareTech Holdings PLCAnnual Report and Accounts 20206Purpose in Action:Adults ServicesPeterAcquired brain injuryPeter relearns how to walk,giving h

46、im the freedom to live independently.Following a catastrophic road traffic accident,Peter suffered profound physical,cognitive and behavioural difficulties.He was unable to walk,and was reluctant to engage in therapy.Over two years a multi-disciplinary team provided physical therapy,occupational the

47、rapy,and psychological therapy and supported regular visits home to enable a gradual re-introduction to his home life.Peter started to walk with a frame and progressed to using crutches and then walking sticks,and learned to cook and to increasingly look after himself.After two years Peter was able

48、to transfer to a community setting close to his family,where he could be more independent.Most importantly,Peter walked out of Oakleaf for the final time without the use of any walking aids!Specialist Brain Injury Services Our Oakleaf services provide specialist rehabilitation for adults with a rang

49、e of physical,psychological,emotional,cognitive,behavioural and communicative support needs resulting from an acquired brain injury.Specialist rehabilitation centres10Specialist Mental Health ServicesWe offer a range of specialist mental health rehabilitation services for men and women spanning acro

50、ss supported living,residential care homes,care homes with nursing and hospitals.Specialist mental health services6Residential Services care homes and assisted livingWe support highly vulnerable adults whose learning disability(autism or mental health)leads to challenging and complex behaviours,to l

51、ive safe,happy lives within their communities.Working in partnership with health and social care professionals within the NHS and local authorities,we enable people to fulfil their goals and aspirations.We do this in two ways:fully residential care homes and supported living.Each person is supported

52、 to access community-based services and to develop the skills and confidence to participate in local activities,whether that is participating in sports,carrying out voluntary work or in some cases paid employment.Many of our individual services are active participants in charitable activities within

53、 their community,championed by passionate and dedicated employees who live locally.We believe that everyone should have the opportunity to choose how they live within their local community.Day Care ServicesOur day services support people with learning disabilities and autism to access community-base

54、d activities and training.This enables them to develop vocational skills such as arts and crafts,cooking,carpentry,drama and design and technology.Peter walked out of Oakleaf Rehabilitation Centre for the final time without the use of any walking aids.CareTech Holdings PLCAnnual Report and Accounts

55、20207Strategic ReportGovernanceFinancial StatementsDan,56With a focus on personal goals,Dan achieved his dream of greater independence.Our approach involved giving Dan choice,observing him and never giving up.“What does Dan aspire to in his life?What can we provide to support him to meet his goals?D

56、an now goes out into the community every week,he goes shopping,and to the pub;he is quite partial to a carvery with a pint!This is due to the approach we took and the support we provide.Our attitude has been one of never giving up,adapt and overcome;it doesnt always go smoothly but he absolutely liv

57、es his best life.”Michelle Woodcock Manager of Supported Living ServicesWe take a person-centred approach to deliverbetter outcomesCareTech Holdings PLCAnnual Report and Accounts 20208Purpose in Action:Person-centred approachThis enables us to deliver our purpose to help people to live their best li

58、fe,with as much independence as possible.Its our unique combination of high standard,highly skilled specialist support and a caring family environment that empowers them to make their own life choices.The breadth of our services also enables us to offer a long-term pathway for service users who need

59、 it;from specialist education right through to supported living once they are able to make independent life choices.Its this pathway approach and consistency of experience for our service users that helps us to deliver such impactful outcomes.We are innovating the pathway approach with our expansion

60、 into tech solutions such as Smartbox.Our primary goal is to ensure our services are not simply places to live but safe,encouraging and fulfilling homes and families for the people in our care.A place that values them as an individual and cares about their life.Its this environment that empowers the

61、m to live their best life.Every individual has their own complex story and needs highly skilled interventions.We always start with their personal story and build a programme of care that will support their combination of needs.We have built a uniquely diverse and skilled team who are experienced and

62、 qualified to support the complex life challenges of our service users and who,together with the individual,deliver amazing outcomes.better outcomesSupport Worker Anne Treeby sings a Bob Marley song with music fan Royston,at his Central Region service.CareTech Holdings PLCAnnual Report and Accounts

63、20209Strategic ReportGovernanceFinancial StatementsOur seven care quality work streams1 Child,young person and adult-centred outcomes.2 Improving quality standards,policies and procedures.3 Recruitment,retention and development of skilled professionals.4 Quality monitoring and assurance.5 Embedding

64、a culture of continuous improvement.6 Management Information Systems(MIS)enabling data-informed practice and decision making.7 Strong and robust site to Board governance.Angus,8Anguss transformation from fearful and agitated to eager and calm.Angus is a complex eight year-old boy with a diagnosis of

65、 autism and a severe learning disability.He has developed from a frightened and agitated little boy with limited life skills and minimal exposure to meaningful experiences,to a calm,tentative yet bubbly little boy with mountains of character.On our last visit we were greeted by a fully dressed Angus

66、,wearing his brand new coat and trainers,reins on and raring to go pulling staff by the hand towards the door.Small steps and changes lead to staggering progress and the possibilities for Angus are now endless.Cambian students hone their cooking skills in the home economics kitchen.CareTech Holdings

67、 PLCAnnual Report and Accounts 202010Purpose in Action:Quality,support,education and careWe remain committed to becoming the highest quality provider of care,education and therapeutic support across the UK.For us,quality is defined by the level of service we deliver and the outcomes we achieve for c

68、hildren,young people and adults.We continue to resource our own highly experienced internal quality and compliance teams who undertake a programme of regular inspection and assessment and give constructive feedback backed by training and supervision if the requirement is there.We engage the services

69、 of outsourced expert advisers,ensuring best practice and procedures are maintained.Our independent Care Quality and Governance Committee provides rigorous oversight of our regulatory and safeguarding performance and has been strengthened by the appointment of Professor Moira Livingston as Chair.We

70、are continuing to evaluate ways in which we can improve our standards of care and are investing significantly in the training and induction of staff.Read more in our Care Quality and Governance Committee report page 66.CQC-registered services162CQC-registered services rated Good or Outstanding91%Ofs

71、ted-registered services233 Ofsted-registered services rated Good or Outstanding82%We providehigh qualitysupport,education and careCareTech Holdings PLCAnnual Report and Accounts 202011Strategic ReportGovernanceFinancial StatementsWe empowerour peopleCareTech Holdings PLCAnnual Report and Accounts 20

72、2012Purpose in Action:Our peopleKaren EastwoodRegistered Manager at Oakleaf brain injury rehabilitation centre in Northamptonshire.CareTech has given me the opportunity to progress as a manager and shown they have faith in me to be a registered manager here at Cotswolds as its quite a large unit,wit

73、h a lot of responsibility.I have unbelievable support from my line managers,Kathy Swannell and Helen Stokes,who have helped me progress professionally to what Ive become today.Karen is fully qualified to administer immunisations and has completed a number of courses such as wound training,PIP traini

74、ng and tracheostomy while with the Company,all of which have added to her clinical repertoire.She hopes to implement the gold standard framework for End of Life care in the coming year.Our culture and valuesOur people are our bedrock.They are our CareTech family.This belief is the foundation of our

75、culture,which strengthens us as“a family”and in turn,drives the great quality of care that we deliver for those who need our services.Our core values were developed by our people and sit at the heart of our expectations of how things are done in the Group.Friendly Positive Innovative Team working Pe

76、rson-centredLooking after our peopleOur purpose is to empower and enable our service users to live their best life,and we extend the same commitment to our people.We support them to develop and grow as professionals and believe that as our people increase their capabilities and commitment,so our hig

77、h quality care ethos is enhanced enabling us to achieve better outcomes.We are proud of our heritage of diversity and have a workforce reflective of the communities we serve and that is central to our success.We are committed to developing a working environment and culture that promote fairness and

78、inclusivity,allowing people to be“who they truly are”.We believe in career development and creating learning opportunities and have developed an enviable reputation as a leading provider and organiser of modern apprenticeships across the UK.We provide our learning services to our staff,to individual

79、s we care and support,and other organisations seeking to develop their teams.Read more on page 45.Care Worker Sarah Tempo enjoys a cup of tea with resident Timmy.Employees/people 10,000+Apprenticeships1,200E-learning courses105,000CareTech Holdings PLCAnnual Report and Accounts 202013Strategic Repor

80、tGovernanceFinancial StatementsWe thinkdifferentlyCareTech Holdings PLCAnnual Report and Accounts 202014Purpose in Action:Innovation and TechnologyInnovation is one of our core values and we are continually looking at ways to grow and find better solutions.The recent additions of Purple and Smartbox

81、 to the Group will enable us to do more to push the social care agenda forward and to be at the forefront of the assistive technology market,which will in turn extend our Care Pathway and leading to better outcomes for our service users.We have also started our geographical expansion through an inve

82、stment in the AS Group,the largest provider of outpatient mental health services in the United Arab Emirates.AS Group comprises two well-established brands,Maudsley Health and the American Center for Psychiatry and Neurology.Through our expertise,we believe we can play a key part supporting the AS G

83、roup to develop its services into specialist social care and special education needs services in the UAE.PurpleSupporting innovation for people with disabilitiesPurple is a thought leader at the forefront of changing the disability conversation,for disabled people,businesses,communities and Governme

84、nt.The aim is to move the conversation from one anchored in welfare,charity and vulnerability to one of value,contribution and opportunity.Purple supports over 4,500 disabled people to live independently in the community using a local authority direct payment(or personal health budget from clinical

85、commissioning groups).This enables them to manage their own care and employ carers of their choice.We also support people into employment with a range of training programmes to build confidence and skills.“Our Purple Partnership package helped us understand where we most need to challenge ourselves

86、to do more on disability inclusion,as a service provider and an employer too.A diverse mix of people brings diversity of thought and makes us a stronger and more sustainable business;one that truly reflects the society we serve.Were confident that with the ongoing support provided in our Purple Part

87、nership,we can make the changes needed to deliver a truly inclusive experience for our customers,employees and communities.”Barry HoffmanGroup Director at Landsec Read more on page 46.People with disabilities supported to manage their care 4,500Potential UK consumers are disabled1 in 5 Organisations

88、 activated to improve the disabled customer experience3,500+SmartboxSupporting innovation for people without speechSmartbox is one of the leading companies in its field,driven by a passion to deliver innovative products and high levels of customer service that will help disabled people to express th

89、eir needs,gain independence and live their best life.In the last year Smartbox has helped more than 10,885 disabled people to communicate using technology.Our products give a voice and independence to people with complex needs who dont have speech,through a combination of specialist hardware and sof

90、tware.This partnership opens up unprecedented opportunities to blend care and technology.This will benefit the service users supported by the Group alongside disabled people more generally and enable the Group to offer innovative solutions to public sector commissioners.Smartbox becoming part of the

91、 Group will accelerate the development of next generation technology-enabled service models for the specialist social care sector.“We were always thinking what does Tom think,what does Tom want and the fact that we now have this tool that is allowing him to speak its made an incredible difference.He

92、 has a voice now.”ElsaMother to Tom,aged 8 Read more on page 46.People with disabilities using Smartbox assistive technology in 202010,885Countries100 Languages30Purple Tuesday 2020 CEO Mike Adams and his team celebrate in front of the Piccadilly Lights,a photo display of CareTech service users supp

93、orting Purples#ThumbsUp campaign.CareTech Holdings PLCAnnual Report and Accounts 202015Strategic ReportGovernanceFinancial StatementsWe are a responsiblebusiness CareTech Holdings PLCAnnual Report and Accounts 202016Purpose in Action:People and planetWe are a purpose-led organisation driven by the c

94、onviction that brighter futures are achievable for everyone.Its a belief that we see lived on a daily basis as our service users and teams together achieve extraordinary things.“Doing the right thing”is in our DNA and part of“business as usual”for the Group.We know that this positive intent is centr

95、al to our business success.This year we have taken important steps towards formalising our culture of“doing the right thing”,building the foundations for a meaningful strategy and framework that will enable us to set material targets and KPIs to better quantify,monitor and report our social impact.I

96、n 2021 we will set out a clear roadmap to reduce our environmental footprint and implement governance that will enable ESG reporting.This approach will allow us to align with and report against the UNs Sustainable Development Goals.This has become increasingly relevant as we expand our services into

97、 international markets.Our strategy will build on the two core pillars of People and Planet.We are committed to a future for the Group that ensures our business growth promotes a brighter future for our people and communities,and protects the planets resources for the long term as well as building b

98、etter lives for our service users every day.PeopleWe are a people business,in the business of making lives better.This commitment extends beyond our service users to the people we employ,the people we do business with and the people who live in our local communities.As a responsible business we know

99、 that our success rests on the actions of many people and wider society and so we are committed to ensuring our impact is positive for all.For our Service UsersFulfilling our corporate purpose results in better lives for many,and its our goal to create positive outcomes for as many people as we are

100、able.Our focus in 2021 is to more fully track and record our outcomes.For our PeopleOur brilliant teams are the beating heart of the Group.We work hard to enable them to deliver the highest quality care and are committed to investing in their development.Our focus in 2021 is to build the UKs best so

101、cial care team,reflecting the diverse nature of our service users and communities,and supporting all our people to reach their professional goals.For our CommunitiesThriving local communities are a vital success factor for the Group.The independent CareTech Charitable Foundation plays an important r

102、ole in supporting local communities and our services all support local economies.It also supports and champions the social care sector,care workers and those living in care.Our focus in 2021 will be to build on our commitment to thriving local communities.PlanetAs the challenges faced by our planet

103、become ever more acute,its clear that all of our futures will be dramatically impacted by issues from global warming to resource scarcity and health threats.As a responsible business we recognise our role as members of the global community to understand and take action to mitigate our impact.To ensu

104、re that we are doing our part to protect the brighter futures we believe in.We know that healthy people and communities are dependent on a healthy planet and the global pandemic of this year has brought that sharply into focus.Our environmental impact programme will focus on five key areas:Zero Wast

105、e to Landfill.Carbon Neutrality.Sustainable Travel and Transport.Responsibly-sourced Materials and Products.Sustainable and Healthy Foods.Read more on page 47.The CareTech Charitable FoundationThe CareTech Foundation,established in 2017,is the first corporate foundation in the UK social care sector,

106、demonstrating the Companys commitment to wider society and to its staff and its desire to play a strong leadership role within the social care sector.The Company donates 2%of its pre-tax profit to the Foundation and recently settled one million shares in the Company with the Foundation to enable its

107、 long-term financial sustainability.The Foundations mission is to support and champion the social care sector,care workers and those living in care.The Foundations Partnership Grants support charities at delivering long-term positive change on the key priorities of:physical and learning disabilities

108、 and mental health;skills development for the care sector;and supporting communities.Members of CareTech staff are able to nominate good causes in their communities to be considered for a CareTech Foundation Community Grant.The Foundation provides match-funding to CareTech plc staffs individual fund

109、raising efforts for charitable causes.The Foundation added the Hardship Fund to its offerings in late 2018,enabling it to support staff and their families facing significant financial hardship.The Company provides additional in-kind support to the Foundation,such as the recent visit to Pakistan by o

110、ur Specialist Services team to advise on British Asian Trusts mental health programme.Read more on page 48.Beneficiaries supported through the CareTech Foundations Partnership grants 275,000 CareTech Foundation Community grants awarded,totalling 39,17533CareTech Foundation Staff Hardship grants awar

111、ded,totalling 97,759134Dayle inspects the bird feeder in the garden of his care home.Residents have many opportunities to enjoy nature and participate in the preservation and care of their surrounding environment.CareTech Holdings PLCAnnual Report and Accounts 202017Strategic ReportGovernanceFinanci

112、al StatementsIn these uncertain times,CareTech continues to be guided by its purpose and has demonstrated the resilience of its business model.Farouq Sheikh OBEGroup Executive ChairmanCareTech Holdings PLCAnnual Report and Accounts 202018Group Executive Chairmans StatementLooking back over the last

113、26 years,CareTech has grown from a single small care home into one of the largest and most respected care providers in the UK operating more than 550 services.PurposeOur purpose throughout has been to enable individuals with complex needs to experience the same opportunities to live,learn,work and e

114、ngage in their communities that we take for granted.This enduring focus on specialist social care services has meant CareTech today supports more than 4,500 service users and employs over 10,500 staff.I am honoured to have been awarded an OBE(Officer of the Most Excellent Order of the British Empire

115、)as part of Her Majesty the Queens 2020 birthday honours list.With deep appreciation I accepted this recognition on behalf of the CareTech family for whom providing“extraordinary days every day”is our guiding mission.I am incredibly proud of the positive impact that CareTech makes with individuals i

116、n our care and the communities we serve.Strong performance during a pandemicIt is my pleasure to present our results for the period ending 30 September 2020.In these unprecedented times,CareTech has demonstrated the significant resilience of its business model and all sites have remained open throug

117、hout the COVID-19 pandemic.Although the pandemic has not been without its challenges;through the incredible dedication of our staff,we continue to deliver the highest quality of care and our services remain fully operational.Less than 3%of our service users fall into the formal NHS high-risk categor

118、ies for COVID-19 such as those with underlying health conditions.For CareTechs Adults CQC registered services,quality ratings were 91%Good or Outstanding,which compares favourably to the national average of 85%.Ofsted ratings remained at 82%Good or Outstanding across the Group.Both CQC and Ofsted ha

119、ve suspended routine inspections and are therefore not currently publishing ratings;however we have strengthened the management of quality and care governance functions to provide additional internal assurance.To support staff through these unprecedented times,a CareTech COVID-19 Fund was launched i

120、n April 2020 that allocated up to 1m of the Groups cash to support staff facing adversity.Alongside this,a discretionary one-off payment was made during August 2020 as recognition to frontline staff for their efforts.We have maintained our high levels of staff retention with the annualised retention

121、 rate at 75%.We remain committed to our people with a number of priorities this year focused on delivering staff development.I am extremely proud and truly inspired by the collective dedication and professionalism of the CareTech family in supporting our service users during these uncertain times,an

122、d convey my heartfelt appreciation to our Board,executive and management teams,and all our staff.Financial results and position CareTech has had an excellent year and I am pleased to report:Strong performance for the year ended 30 September 2020 with results ahead of market expectations.Revenue incr

123、ease of 8.9%to 430.0m.Underlying EBITDA(i)(pre IFRS 16)increase of 14.4%to 84.1m(post IFRS 16:90.9m).Underlying EPS(ii)(pre IFRS 16)increase of 14.4%to 43.0p(post IFRS 16:42.26p).Statutory EPS increase of 24%to 22.88p.Strong operating cash conversion,accelerated reduction in net debt to 268.9m.Cambi

124、an performing in line/slightly ahead of targets set out at the time of acquisition.Continuation of organic growth initiatives.Increased final dividend of 8.75p declared and dividend policy reaffirmed.Results in this section are presented for the year ended 30 September 2020 on a non-statutory illust

125、rative basis excluding the impact of IFRS 16 Leases to enable a comparison with 2019 performance.The Groups trading performance in the year was slightly ahead of market expectations.Trading was particularly strong in the latter part of the year with revenue increasing to 430.0m,an 8.9%increase.2020

126、(pre IFRS 16)2019 (as reported pre IFRS 16)%change2020 IFRS 16 change2020 (as reported,post IFRS 16)Revenue430.0m395.0m+9%430.0mUnderlying EBITDA(i)84.1m73.5m+14%6.8m90.9mUnderlying profit before tax(ii)60.5m50.2m+20%(0.8)m59.7mUnderlying basic earnings per share43.0p37.6p+14%(0.76)p42.3pStatutory p

127、rofit before tax38.6m24.3m+59%(0.7)m37.8mStatutory earnings per share23.6p18.4p+28%(0.76)p22.9pCash flow from operating activities(iii)87.4m66.3m+31.8%6.8m94.1mFinal dividend per share8.75p7.95p+10.1%8.75p(i)EBITDA is operating profit stated before depreciation,share-based payments charge and non-un

128、derlying items.(ii)Underlying profit before tax and underlying basic earnings per share are stated before non-underlying items.(iii)Cash flow from operating activities before non-underlying items(see note 6).CareTech has demonstrated the significant resilience of its business modelCareTech Holdings

129、PLCAnnual Report and Accounts 202019Strategic ReportGovernanceFinancial StatementsGroup EBITDA was 84.1m(2019:73.5m)which represents growth of 14.4%when compared with the same period last year.The EBITDA margin was 19.6%(2019:18.6%)reflecting the improvements to the Cambian business,delivery of syne

130、rgies and organic growth.Underlying profit before tax increased by 20.6%to 60.5m(2019:50.2m)and underlying basic earnings per share was 43.0p(2019:37.6p).Cash performance has exceeded market expectations.The Group continues to have a strong financial position with net debt at 30 September 2020 being

131、 268.9m compared with 291.1m at 30 September 2019,giving net debt/EBITDA of 3.1x.Operating cash conversion was strong and partially offset by the cash consideration paid for the UAE acquisition,development opportunities and integration costs associated with the Cambian acquisition.The Board continue

132、s to believe that the Group will achieve its target of reducing net debt/EBITDA to below 3.0 x.DividendWe continue to maintain a progressive dividend policy.Given the consistent earnings growth,the Board has proposed a final dividend of 8.75p(2019:7.95p)per share bringing the total dividend for the

133、year to 12.75p(2019:11.7p)per share.This represents a full year increase of 9%year on year.The final dividend will be paid,subject to shareholder approval,on 5 May 2021,with an ex-dividend date of 4 March 2021 and an associated record date of 5 March 2021.Moving forward with our strategyWe continue

134、to make excellent progress in advancing our strategic goals:Consolidating our market-leading position in the United KingdomFollowing a period of accelerated growth,particularly through the Cambian acquisition,this year we have been able to consolidate our market position in Childrens Services.Post-m

135、erger integration has progressed to plan including delivering on identified synergies;implementation of an integrated management structure for Cambian and CareTech Childrens Services;and roll-out of shared quality,compliance and governance arrangements.Leveraging on this market status,which includes

136、 46 specialist schools and colleges,our education teams are collaborating with the leading academic institutes to co-create and implement research-led best practice in specialist education that can benefit Group services and the wider sector.Continued favourable demographics,underpinned by growth in

137、 outsourcing to the private sector,enable CareTech to remain a force for good in delivering innovative service models to commissioners and improved outcomes for our service users.As we move into 2020/21 and beyond we are well positioned to pursue a strong and active pipeline of organic service devel

138、opments and bolt-on acquisitions in both Adults Services and across Childrens Services.Taking our expertise to the Gulf markets CareTech has been actively involved in the UK export drive to identify new markets.Following extensive market engagement in the Gulf,it is evident there is a significant ne

139、ed for CareTechs specialist expertise.Responding to this,CareTech completed its first investment in the UAE in February 2020,through the acquisition of a 52%interest in AS Investment Holdings Ltd and AS1 Investment Holdings Ltd(the“AS Group”).The AS Group holds a majority equity interest in the Amer

140、ican Center for Psychiatry and Neurology and Macani Medical Center,both well regarded mental health providers.The AS Groups strategy is to develop a holistic Care Pathway of specialist services in the UAE,building on the solid foundations of its existing services and brands.With an experienced manag

141、ement team already in place,our plans are to support the AS Group in growing services,and for this first regional investment by CareTech to act as a gateway to further investments in the Gulf.Like our UK services,the AS Group has demonstrated resilience in the face of the pandemic with full year res

142、ults expected in line with the agreed business plan.Accelerating digital adoption and extending CareTechs technology offerCOVID-19 has shone a bright light on the increasing reliance on technology in every aspect of our lives,with people experiencing complex needs disproportionally disadvantaged and

143、 isolated.CareTech recognises assistive technology is the means to unlocking the digital world to millions of disabled people and therefore we have prioritised the acceleration of technology adoption by our services and the digital extension of our Care Pathway.In this context,we announced in Octobe

144、r 2020 the acquisition of a majority holding in Smartbox Assistive Technology Limited and associated subsidiaries,and Sensory Software International Ltd(collectively“Smartbox”).Smartbox is a market-leading creator of software,hardware and content for individuals for whom speech difficulties is a cha

145、llenge.Smartbox provides communication aids,environmental control devices,computer control technology and interactive learning and is market leader in the UK.Amongst the four leading global companies in the augmentative and assistive technology(“AAC”)market it has a presence in the US and supplies i

146、ts solutions into more than 30 countries.Smartbox generated revenue in excess of 10 million in 2019 and has a track record of profitability.It is expected that the acquisition will be earnings enhancing for CareTech in the first financial year of consolidation.The Smartbox investment represents an i

147、mportant milestone on CareTechs digital buy,build and partner strategy,which will see further opportunities announced that are under active consideration.CareTech Holdings PLCAnnual Report and Accounts 202020Group Executive Chairmans StatementcontinuedStrengthened BoardChristopher Dickinson(FCA)join

148、ed our Board as Group Chief Financial Officer on 13 January 2020.Chris spent the past year as Cambians Chief Financial Officer and prior to joining CareTech was a Managing Director at Jefferies where he acted for CareTech on its acquisition of Cambian.Chris brings a wealth of highly relevant experie

149、nce and his appointment reinforces our commitment to build a strong Group Executive Team.We plan to appoint an additional independent Non-Executive Director during 2021,to further strengthen our Board.Social responsibilityThe CareTech Foundation,established in 2017,is an independent grant-making cor

150、porate foundation registered with the Charity Commission and a first in the UK social care sector,demonstrating the Groups commitment to social purpose in wider society.Highlights during the year include:Increasing impact delivered through the Foundations partnership grants,with some 105,000 benefic

151、iaries supported directly and indirectly up to the end of December 2019 as set out in the Foundations published Impact Report(https:/www.caretechfoundation.org.uk/impact-report-2018-2019/).The Group continues to provide additional in-kind support,such as the recent visit to Pakistan by our Specialis

152、t Services team to advise on British Asian Trusts mental health programme.Its headline support,alongside the Group,to the Care Sector Ball 2019 that raised 200,000 for the Care Workers Charity and Alzheimers Society.Following last years grant of 250,000,work continues on the Birkbeck,University of L

153、ondon,ToddlerLab which will enable the advanced scientific study of brain development for children from 18 months to three or four years in an environment simulating familiar surroundings for toddlers.In the social care sector we see the real challenges that come along with developmental conditions

154、like autism and ADHD.Increasing our understanding of how childrens brains develop could make a huge difference to how we help children flourish.Research that allows us to spot signs earlier and improve the effectiveness of interventions could be a real game changer in boosting childrens futures.Grow

155、th in the range of community grants provided to local causes,including:provision of state of the art equipment for a school for those with autism in London,support of the Inclusive Sports Festival in Birmingham;and,a series of five grants nominated by staff at CareTechs Greenfields School for charit

156、able projects in their local community.A significant increase in the support provided through the Foundations Staff Hardship Fund and its match-funding scheme to support staff members charitable fundraising.To provide further support the CareTech Foundation,the Group donated one million CareTech sha

157、res to the Foundation in June 2020.This donation will provide the Foundation with additional income and demonstrates CareTechs commitment to society,to our staff,and our desire to play a strong leadership role within the social care sector.In parallel,over the past 12 months,Purple Zest Ltd,a 100%ow

158、ned subsidiary of CareTech has pioneered in changing the disability conversation;supporting businesses across all sectors and of all sizes,to accelerate their disability inclusion activities.Purple Tuesday,CareTechs flagship national brand to support organisations to improve the disabled customer ex

159、perience,has engaged more than 3,500 organisations in making over 5,000 practical pledges to transform their customer service,thereby changing the consumer landscape.Outlook and prospectsCareTech enters the new financial year in a robust position and remains highly focused in providing extraordinary

160、 days every day for our service users.I am proud of our record of accomplishment and the culture we have embedded within CareTech.We listen to our service users,their families and to our staff,and work closely with local authorities,independent inspectors and our regulators to improve and shape best

161、 practice.CareTech will continue to consolidate its position in the UK and develop overseas markets in the Gulf.We plan to leverage technology to enhance and extend our Care Pathway and become a digital leader in the specialist social care sector just as we are in providing care services.Looking ahe

162、ad,I have no doubt we will see a continuation of growth and care excellence,which will help continue our target of double-digit growth in underlying EPS and maintain our progressive dividend policy.On behalf of the Board,I would like to thank our many stakeholders and the CareTech family,including c

163、olleagues joining us from the AS Group and Smartbox,for their dedication and commitment to the Group and for going the extra mile.Finally,I would also like to thank our shareholders for your continued support.Farouq Sheikh OBEGroup Executive Chairman10 December 2020CareTech Holdings PLCAnnual Report

164、 and Accounts 202021Strategic ReportGovernanceFinancial StatementsCareTech Holdings PLCAnnual Report and Accounts 202022Group Chief Executive Officers Statement and Performance Review2020 has been an extraordinary year.Faced with a global pandemic,CareTech continues,resolutely,to deliver on our purp

165、ose to create opportunity and transform outcomes for service users in our care and deliver value to commissioners.An extraordinary yearOur Care Pathway,which extend from Foster Care to Childrens and Adults Services,addresses the needs of individuals with complex needs.We provide services in a range

166、of community-based settings that include schools and colleges;day care,residential and step-down supported housing;and specialist placements.Our offer now includes assistive technology to enable individuals without voice to communicate,considerably extending our digital reach to people with complex

167、needs in our home markets and around the world.Our commitment to high quality careFundamental to everything we do is an unwavering commitment to provide high quality care.Delivering this has required good governance,an open and transparent culture,dedicated focus to continuous improvement,and robust

168、 processes and systems.We have enhanced the terms of reference for our Care Quality and Governance Committee to include the growing clinical governance agenda across the Group.Alongside this we have strengthened the leadership and management of our quality,safeguarding and care governance functions

169、as we continue to work closely with our regulators.This investment in governance,good practice and management capacity has enabled us to mount a robust and effective response to the ongoing pandemic.The Groups priority throughout COVID-19 has been the health,safety and wellbeing of our service users

170、 and colleagues.We have taken immediate and decisive steps to develop a well-managed response to business continuity and a COVID-19 taskforce led by the Executive Team has co-ordinated our decisions and actions.This has been informed by a dynamic risk assessment tool implemented to provide real time

171、 monitoring and support across all of our services.We have given particular focus to how services are managing with key aspects of care quality for example,availability of Personal Protective Equipment(“PPE”)and other important infection control measures.I am pleased to report arrangements have also

172、 been in place to provide staff cover between services and,overall,a reduction in agency workers.Our services benefit from strict precautions including enhanced levels of cleaning,additional hygiene facilities and social distancing,and our internal compliance team has maintained a programme of visit

173、s,reviews and support to frontline services.Above all and despite these challenging times,we remain committed to the engagement of our staff and service users,and ensuring services continue to provide extraordinary days every day for those in our care.CareTech continues,resolutely,to deliver on our

174、purpose to create opportunity and transform outcomes for service users in our care,and deliver value to commissioners.Haroon SheikhGroup Chief Executive OfficerUnwavering commitment to provide high quality careCareTech Holdings PLCAnnual Report and Accounts 202023Strategic ReportGovernanceFinancial

175、StatementsOur commitment to our peopleThe Group recognises that finding and hiring the right people,based on our corporate values,is central to our ability to continue achieving our purpose.I congratulate our recruitment and learning services teams who through hard work and determination have recrui

176、ted staff and on-boarded them exceptionally well this year in unusually challenging circumstances.CareTech is immensely proud of its longstanding diversity heritage.We are committed to developing a working environment and culture that promotes fairness and inclusivity.In October 2020,we initiated a

177、Diversity&Inclusion Programme to shape our strategy and embed this into working practices and culture.We remain committed to a culture of“open dialogue”and our most recent Staff Survey received over 3,000 responses demonstrating positive engagement.Our focus for the coming year is to roll out Group-

178、wide plans to improve staff experience and act upon the feedback we received.Our commitment to innovationTechnology plays an incredibly important role in how we operate as a Group supporting our services and staff with solutions and enabling great quality care for our service users.The pandemic has

179、accentuated the need for innovative and scalable technology,and I am delighted our highly talented technology teams have risen to this challenge procuring best in class solutions and developed in-house applications,one example being the dynamic risk assessment tool,referenced earlier.During the year

180、,we upgraded the income processing systems,integrated CareTech and Cambian human resources and payroll applications to a consolidated platform,rolled out sophisticated estates management functionality,and business intelligence and analytics capability.We will continue to invest in technology to crea

181、te an integrated compliance and quality line of sight platform to provide a real time view of key metrics,In Childrens Services development of an enhanced assessment and referrals system is underway and work has started on designing the Groups new corporate website,which will incorporate our growing

182、 presence in the UK and international markets.Our investment in Smartbox will introduce augmentative and assistive technology to our education and care services and work is underway to identify early adopter sites for piloting.Our commitment to sustainabilityWe are a business driven by the convictio

183、n that brighter futures are achievable for everyone.As the challenges faced by our planet become ever more acute its clear that issues from global warming to resource scarcity and health threats will dramatically affect all of our futures.As a sector leader,CareTech recognises the role we can play a

184、s members of the global community towards a brighter future for everyone.We know that healthy people and communities are dependent on a healthy planet,and the present global pandemic has brought that sharply into focus.We take a holistic approach to sustainability,encompassing social and environment

185、al impact.This year we have taken important steps towards building a meaningful strategy that will set out a clear roadmap to reduce our environmental footprint and implement Environmental,Social and Governance(“ESG”)reporting.This approach will enable us to align with and report against the UNs Sus

186、tainable Development Goals,most notably Goal 3(Good Health and Wellbeing),Goal 4(Quality Education)and Goal 10(Reduced Inequalities).Our commitment to supporting our local communities is delivered by the CareTech Foundation which provides grants to local charities and to the care sector more general

187、ly.Caretech donated 2%of its pre-tax profit to the Foundation alongside the recently donated one million shares to the Foundation.Business performanceI am pleased to provide a review of each of CareTechs operating divisions as set out below.A new accounting standard,IFRS 16 Leases,was adopted with e

188、ffect from 1 October 2019.To enable a comparison with the 2019 performance,results in this section include presentation for the year ended 30 September on a non-statutory illustrative basis.CareTech Holdings PLCAnnual Report and Accounts 202024Group Chief Executive Officers Statement and Performance

189、 ReviewcontinuedAdults ServicesYear to 30 SeptemberRevenue 136.2m(2019:123.6m)Pre IFRS 16 EBITDA before unallocated costs 33.6m(2019:32.7m)Post IFRS 16 EBITDA before unallocated costs 35.7m(2019:32.7m)Capacity 1,997(2019:1,968)Adults Services provide a flexible,person-centred approach with support o

190、ffered on an individual planned basis both within a registered residential setting and in step-down supported housing.Demand remains high across the spectrum for the support of people with learning disabilities and CareTech recognises the increasing complexity of need for referrals to specialist ser

191、vices within the division.For many people with the most complex intellectual or physical challenges,residential care will continue to be the preferred option although the services will change in their approach as we move towards a more enabling,modern type of service.An alternative to residential ca

192、re is the opportunity for people to live in a home of their own,sometimes shared with others.CareTech is a leader in the provision of supported living and offers packages of individualised self-directed support to people in their own homes.CareTechs Specialist Services team works in partnership with

193、 the NHS and Social Service departments to ensure a successful transition out of acute care and the prison service,delivering pathways to an ordinary life.We also have an outstanding track record for diverting people away from acute care and supporting them in their own homes.CareTechs highly effect

194、ive care teams are developing new ways to offer community support solutions and we believe that this will be an important growth platform in years to come.Specialist Services provision continues to dominate the health and social care agenda.Good Specialist Services are a significant contributor to a

195、 healthy community and national economy,while mental ill health is devastating to individuals and their families.Most commissioners are driven by a wish to reduce patient time in acute care and rely on creative outsourcing to dramatically cut the cost of specialist services care in hospital and with

196、in the criminal justice system.The market for high acuity care and support for people with learning disabilities is estimated to be 5.8bn and growing year on year due to demographic changes and individuals living longer.Demand for lower acuity support has been impacted by cuts in local authority exp

197、enditure,but this is not an area of activity in which CareTech operates.Conversely,funding for those with the highest level of need has maintained,and increased in some local authorities.Due to COVID-19,the Care Quality Commission(“CQC”)suspended routine inspections in March 2020 and has only just c

198、ommenced inspections focused on higher risk services.Across Adults Services,CQC ratings are 91%Good or Outstanding,which compares favourably to the national average of 85%.Revenues from Adults Services were 136.2m(2019:123.6m)and EBITDA was 33.6m(2019:32.7m).Revenues and EBITDA increased by 10.2%and

199、 2.6%respectively.EBITDA margins adjusted to 24.7%reflecting the change in mix to the business as the number of supported living beds grew,and opening of two new residential sites in Specialist Services.Placements increased by 29 to 1,997.60 beds were introduced to the portfolio including 41 beds in

200、 two new residential sites in Specialist Services.A net 15 supported living contracts ended and 16 beds were withdrawn.The Group has continued to build on our values driven,and quality focused,approach to transforming outcomes for service users in our care,and delivering value to commissioners.CareT

201、ech Holdings PLCAnnual Report and Accounts 202025Strategic ReportGovernanceFinancial StatementsChildrens ServicesYear to 30 SeptemberRevenue252.9m(2019:230.6m)Pre IFRS 16 EBITDA before unallocated costs65.9m(2019:55.6m)Post IFRS 16 EBITDA before unallocated costs69.6m(2019:55.6m)Capacity1,959(2019:1

202、,933)For a relatively small number of children,residential care offers a safe and helpful solution for their care needs and CareTech has developed an extensive range of highly technical care and education environments where those children will thrive.Our residential provision offers high staff ratio

203、s and highly skilled carers,capable of ensuring both safety and progression.These are high cost services where we aim for an intensive period of care and a strict timetable that delivers results at a fair price to commissioners.As far as practicable we aim to help these children through our therapeu

204、tic care approach to move into a more normalised family style environment as soon as it is practicable to do so.These services are highly integrated operations with dedicated staff ratios and may also include on-site or dedicated educational facilities.Foster CareYear to 30 SeptemberRevenue40.9m(201

205、9:40.8m)Pre IFRS 16 EBITDA before unallocated costs8.0m(2019:7.5m)Post IFRS 16 EBITDA before unallocated costs8.6m(2019:7.5m)Capacity1,028(2019:1,178)As with CQC,the Office for Standards in Education,Childrens Services and Skills(“Ofsted”)suspended routine inspections in March 2020,and resumed inspe

206、ctions focused on higher risk services in September 2020.Ofsted ratings across the Group are 82%Good and Outstanding.Due to COVID-19 and Ofsted not currently publishing ratings,we do not expect the Groups ratings to change in the short term.Revenues and EBITDA before unallocated costs for Childrens

207、Services were 252.9m and 65.9m,an increase of 9.7%and 18.4%respectively.Cambian has continued to see EBITDA margin enhancement through improved quality ratings and increased staff retention,and this leading to increased occupancy levels.Capacity increased by 26 beds with 27 development projects brou

208、ght into service,22 capacity increases,eight beds withdrawn and 15 reconfigurations.The pipeline of organic investments in our Childrens Services residential portfolio continues to be strong.CareTech Holdings PLCAnnual Report and Accounts 202026Group Chief Executive Officers Statement and Performanc

209、e ReviewcontinuedFoster care is undoubtedly the best care solution for most“looked after”children.Most children thrive in foster care where they are supported within an ordinary family home and with trained foster carers.CareTech provides for both mainstream and specialist foster care through local

210、agencies across the UK.We offer a highly respected service for physically and intellectually disabled children as well as support for children with sensory impairments.We provide foster care family assessments and ongoing support to children who remain with their birth families and in their family h

211、ome.Revenue and EBITDA for Foster Care were 40.9m and 8.0m respectively.Capacity has decreased by 150 places,as available capacity has not always been fully utilised due to a number of solo placements,COVID-19 restrictions,foster parent leavers and in some cases young persons remaining in placement

212、post-independence.Looking forward,we are training our foster carers with the skills required to manage placements that are more complex and have linked Fostering Care Services with our Childrens Services residential team to provide an effective Care Pathway.InternationalCareTech has actively targete

213、d the Gulf markets through inbound and outbound trade visits as this region increasingly looks towards international best practice to support local transformation of specialist social care services to meet population needs and in line with the UNs 2030 Agenda for Sustainable Development.In February

214、2020,CareTech completed an investment into the AS Group,the largest provider of outpatient mental health services in the UAE.AS Group comprises two well-established brands,Maudsley Health and the American Center for Psychiatry and Neurology(“ACPN”).Maudsley Health is a partnership between the Macani

215、 Medical Center and South London and Maudsley NHS Foundation Trust(“SLaM”),the oldest psychiatric institution in the world.The partnership operates an outpatient facility in Abu Dhabi and in 2018 won the tender for an exclusive management agreement to provide clinical support to the Al-Amal Psychiat

216、ric Hospital in Dubai,a 276-bed state of the art Government owned facility exclusively dedicated to mental health.ACPN has operated since 2008 providing psychiatry,psychology,occupational therapy,rehabilitation and related services.Services are state funded by Thiqa/Daman insurance and the brands ma

217、jor customer group is UAE nationals.Maudsley Health and ACPN have strong relationships with commissioners across the UAE and engage with them to develop care pathway opportunities.Through this investment in the AS Group,CareTech will support the acquired services to grow their Care Pathway into spec

218、ialist social care,education and training via organic service developments and bolt-on acquisitions.Despite the challenges of COVID-19,the AS Group is on track to deliver its first year business plan under CareTech ownership,demonstrating the underlying resilience of the business.We are confident th

219、at a strengthened Care Pathway will significantly improve the availability of high quality services to an underserved social care market in the UAE,and act as a gateway to the wider Gulf region where we are experiencing growing interest in CareTechs expertise.To support the regional growth opportuni

220、ty we have established our corporate Managing Office for the Middle East North Africa in the Dubai International Financial Centre,UAE,and appointed an experienced management team to expand the Groups presence in the Gulf markets.Summary and outlookThe pandemic has tested the resilience of UK PLC and

221、 businesses across the globe.I am pleased to report that our strategy in the markets we serve has proven to be robust and highly resilient even during these uncertain times.More importantly,I am delighted that CareTech in this 26th year of existence has demonstrated that commitment to purpose remain

222、s as strong today as it was when we opened our first small care home.Turning to the future,I remain confident about CareTechs outlook and prospects,to reach more people with complex needs at home and overseas,through a blend of high quality services and our digitally extended Care Pathway.It is my p

223、leasure to lead the Group,a business that has consistently made a real difference to so many lives.In these uncertain times we continue to celebrate the tremendous achievements of our service users across the country,holding an Arts and Crafts celebration,Easter Spirit event and a“Blooming Marvellou

224、s”Gardening competition through the year.I conclude by expressing my sincere thanks to our Board,our executive and management teams and colleagues throughout the Group for their hard work,commitment and dedication.In particular I would like to reach out to our staff to convey my heartfelt appreciati

225、on,and thank them,for the manner in which they continue to resolutely provide outstanding care to our service users,and supported each other,during this year of the pandemic.Haroon SheikhGroup Chief Executive Officer10 December 2020CareTech Holdings PLCAnnual Report and Accounts 202027Strategic Repo

226、rtGovernanceFinancial StatementsOur market is driven by five big trendsJackie and Margaret have fun playing an afternoon game of Connect 4 at their Central region home.CareTech Holdings PLCAnnual Report and Accounts 202028Our Market1.Increasing demand for specialist adults and childrens careAdults S

227、ervicesYounger Adults in residential care settings63,000Younger Adults in non-residential care settings297,000UK population have specific mental disorders13%*Data from LaingBuisson Adult Specialist Care 4th edition 2020 report.The Adults Services care market in which the Group operates in the UK is

228、worth an estimated 12.5bn per annum and estimated to be growing by more than 2-3%per annum.The principal drivers of demand for adult specialist care in the UK are:Improved life expectancy and ageing of learning disabled population.Increasing survival of children and young people with complex needs i

229、nto adulthood.Inability of parents to provide informal care.Increased medical interventions around birth,increasing the number and proportion of service users with lifelong severe learning and/or physical disabilities.Moving up the acuity spectrum increases fees but also creates areas of expertise t

230、hat others find difficult to match.There is commissioner preference for supported living over residential care as this is a lower cost to local authorities because the housing element is paid through from housing benefit allowance.Childrens Services Children in UK looked after outside foster care10,

231、080Children in independent sector special schools and colleges 21,817Placed in foster care in England54,870*Data from LaingBuisson Childrens Services Market Report 5th edition 2020 report.In 2020,the total market for specialist Childrens Services was worth approximately 5.9bn.The market is growing f

232、or the following reasons:Long-term population growth and higher prevalence of special educational needs and“high needs”over time.High priority for the Government is adequate provision of mental health services and support for vulnerable children and young people.Earlier diagnosis of complex needs.Ca

233、reTech Holdings PLCAnnual Report and Accounts 202029Strategic ReportGovernanceFinancial Statements2.Funding for healthcareMarket statisticsMarket for residential learning disabilities and supported living worth an annual 5.8bn Adults specialist care market 12.5bn Market growth rate 1.22.6%p.a.Reside

234、ntial childrens market across UK worth Independent sector 1.15bn Public sector 492mMarket growth rate6.9%Independent sector 1.2bn Public sector 3.09bnMarket growth rate6.3%Independent sector 790m Public sector 956mMarket growth rate3.7%Education and training in special schools and collegesFoster car

235、e market across England worth1.64bn Total4.29bn Total1.75bn Total*Data from LaingBuisson Adult Specialist Care 4th edition 2020 report.*Data from LaingBuisson Childrens Services Market Report 5th edition 2020 report.The UK has an established system of public and private providers of health and socia

236、l care.Although the available resources to purchase social care remain largely static there is a known increase in demand across the whole spectrum,presenting purchasing bodies with a conundrum and focusing money on the areas of highest need such as complex children,very disabled or complex people w

237、ith learning difficulties and hospital discharge schemes.The principal driver for commissioners in local authorities and the NHS is value.This is interpreted by them as the optimum balance between quality and price,but has an underpinning criterion determined by“outcomes”.CareTech Holdings PLCAnnual

238、 Report and Accounts 202030Our Marketcontinued3.Fragmented market of care providers4.Stringent regulation over quality of care10 largest Adults Service providers have only 13.5%market shareTop 4 independent Childrens Services providers have 23%of residential market share*Data from LaingBuisson Adult

239、 Specialist Care 4th edition 2020 report.*Data from LaingBuisson Childrens Services Market Report 5th edition 2020 report.Most providers of social care have fewer than three services and this huge,fragmented range of providers represents the vast majority of the market.However,the market has been st

240、eadily consolidating and a very small number of large“corporate”providers have emerged,with CareTech being one of the bigger players within the non-elderly care sector.The Adults specialist care market is the most fragmented with the top four largest providers having 7.5%market share and the ten lar

241、gest players only 13.5%market share.The markets that CareTech serves are regulated by CQC and Ofsted in England,and equivalent regulatory bodies in Scotland and Wales.These bodies control and administer the registration,inspection and complaints procedures set out under applicable laws and regulatio

242、ns.In order to open a service,it needs to be registered with the applicable regulator,and must pass regular inspections to ensure it meets the minimum standards and requirements prescribed under laws and regulation.Commissioners placing adults or children into services expect high quality provision.

243、A high level of regulation is required to assure the quality and safety of services.CareTech Holdings PLCAnnual Report and Accounts 202031Strategic ReportGovernanceFinancial StatementsMickey Wiltshire,a resident in Central region,has a playful moment with his support worker Italia.What this means fo

244、r CareTechThe market segments served by CareTech is growing for both adults and children who present with high severity needs,challenging behaviours and who have complex care requirements.Hence,budget cuts have a very limited impact on the Group.One of our differentiating factors is the concept of t

245、he Care Pathway to reflect our optimism that users of our services can make progress with their lives.Our commitment to maximise independence is great for our service users,rewarding for our staff and strongly supported by those who commission and support our services.Our“outcome”focused approach fo

246、r our service users has a wider impact on society including more individuals back into work,fewer individuals returning to care facilities,a reduction of adult prison population having been in care and children leaving care achieving educational attainment levels.CareTech is well positioned in the m

247、arket.We are aligned to local authorities purchasing principals and we work closely with commissioners to ensure that we stay in tune with their approach to market management.We work closely with our regulators and commissioners across England,Scotland and Wales.CareTech is a very well-known care Gr

248、oup in public ownership and offers high quality services with a strong ethical and values-based approach.We have upper quartile ratings for both CQC and Ofsted and have ambitions to improve these.Our quality assurance is embedded within the Groups operational management structure from the Home Manag

249、er,Regional Manager and Operations Director,through to the Chief Operational Officer and the Board.The Group uses Acoura and NYAS as independent suppliers,to audit and report monthly Health and Safety matters as well as all RIDDORS(Reporting of Injuries,Diseases and Dangerous Occurrences).We continu

250、e to strive to be the employer of choice within the sector.We promote our values and culture by helping our employees and supporting them with regular supervision,training and career development programmes.To embed our culture across the Group we reward our people throughout the year culminating in

251、the Sixth Care Awards ceremony.These initiatives promote staff continuity and lead to improved standards of care quality.5.Access to skilled care workersIndustry average retention rate less than 70%The social care sector has high levels of turnover and vacancies.Following the introduction of the nat

252、ional living wage on 1 April 2016,care workers pay has increased but staff turnover remains high given tough working conditions.Care workers in the sector find working in the sector fulfilling but there is a perception of low pay and lack of training or promotional prospects.CareTech Holdings PLCAnn

253、ual Report and Accounts 202032Our MarketcontinuedWe have defined three pillars to execute our strategic objectiveWithin the UK,CareTechs strategic goal is to be a leading national integrated provider of specialist social care services for children and adults,delivering high quality and care excellen

254、ce.We aim to distinguish ourselves from other providers by offering a bespoke range of options,which meet the needs of commissioners and offer service users a Care Pathway of opportunities.The Groups focus is the provision of high acuity specialist social care through our three outcome-based divisio

255、n Adults Services,Childrens Services and Foster Care.We have defined three pillars to executing our strategy.ObjectiveWe employ over 10,500 qualified and skilled frontline staff including care workers,teachers and managers.They are supported by a professional team of clinical and therapeutic staff,b

256、ack office and support services.The care,commitment and professionalism of our staff is critical to the success of our Group and the care we provide.CareTech places emphasis on the provision of attractive working conditions and staff training.Part of our recruitment process is focused on matching th

257、e needs of the Groups service users to the skills values and behaviour of our staff,which necessitates a person-centred approach to recruitment and on-boarding.We offer a range of learning and development to ensure that staff have the necessary knowledge,competencies and attitudes for the services w

258、e provide.Progress this year Conducted annual Group staff survey which showed that we scored a positive engagement score in all“five engagement drivers”.Staff strongly supported the notion that CareTech was a good place to work and most importantly stated that they were provided with the right train

259、ing in a timely fashion in order for them to continue to deliver great quality care for the people that we support.Endorsed a partnering initiative,with organisations such as the Ernst&Young Foundation,to bring young people into our sector.Endorsed a programme to move from aspiring behaviours to liv

260、ed behaviours leading to organisational behaviour statements.This will also power our resourcing agenda to be underpinned with a strong values ethos.Priorities for 2020/21 Fully roll out the Applause Programme launched in October 2020 to recognise and reward our staff for living our values.Develop o

261、ur Equality,Diversity&Inclusion(“ED&I”)programme to shape our diversity and inclusion strategy and embed this into working practices and culture.Conduct an internal audit of good ED&I practice to establish baseline and roadmap.Work with senior leaders to provide training,development,workshops and co

262、aching to help increase their understanding of the importance of ED&I and organisational relevance.Run focus groups to establish the reality of working for the Group,from a minority perspective(Gender,Disability,Ethnicity and LGBT).Focus on leadership coaching and building for the future introductio

263、n of executive management development.KPIs Staff retention rate.1.Build the industrys best leadership and workforce Jon Davis leads a training session for support workers and managers on“Inclusion and Diversity”at CareTech Head Office in Potters Bar,Hertfordshire.CareTech Holdings PLCAnnual Report a

264、nd Accounts 202033Strategic ReportGovernanceFinancial StatementsOur Strategy and KPIs ObjectiveThe drivers for social care are to deliver high quality care,with reliable outcomes at a fair price.We believe that the market has recognised that CareTech offers the best possible balance between quality

265、and value and understands the need for progressive thinking and innovation to deliver ongoing results.Our Group brands are strong and our extensive commissioning relationships across the UK robust.This is reinforced by our presence at major industry events where we have been reliable sponsors and co

266、mmentators.The most effective way that we sustain our reputation is by delivering what we promise for the people we support and by treating our staff well.Quality is not simply compliance with the requirements of regulation.Our approach is to embed quality throughout the Groups operations and employ

267、 well-qualified and skilled professionals who operate within our quality framework.Our quality framework and processes include,but are not limited to:Recruitment and retention of appropriate staff alongside appropriate training and induction.Regular reporting from home managers through to locality m

268、anagers,operational directors and divisional senior management as well as the Groups head of quality.“Line of sight”monitoring which looks for key performance indicators,which support high quality services.Each service is rated internally with early warning signs identified and progress monitored by

269、 senior management to drive continuous improvement.An experienced internal quality and compliance team who operate across all divisions,reporting to senior management.The team undertakes a programme of regular inspection and assessment of facilities and services against internal quality assurance fr

270、ameworks,and additionally carries out thematic reviews.A Care Quality and Governance Committee chaired by Professor Moira Livingston,Non-Executive Director.The Committee has oversight of all issues and reports relating to the well-being of service users;commissions enquiries into matters of concern;

271、and strives to ensure that CareTech operates to the highest level of professional care standards.Careful analysis of regulatory inspection reports from external regulators.Board oversight through monthly reporting of key performance indicators and compliance data.2.Have the highest quality ratings P

272、rogress this year Conducted a survey of our children and young people to assess their views on how well supported they felt during COVID-19.Operated a pandemic response taskforce to manage the effective handling of COVID-19 across the whole business.Expanded the STEP therapeutic framework into parts

273、 of our Childrens Services,enabling us to better needs of services users at each stage of their journey.Designed and implemented a new and robust policy review process for all operational policies across the Group.Designed competency matrices for care staff.Reviewed our safeguarding practice against

274、 NSPCC safeguarding standards.Established a Heads of Care Forum,a Heads of Education Forum and Safeguarding Boards.Priorities for 2020/21 Expand the roll-out of our outcome-framework,and select appropriate frameworks for Adults Services.The STEP framework will be rolled out to our specialist mental

275、health services.We will investigate effective methods to update staff on changes in policy and test their understanding.Implement a new dynamic risk assessment“line of sight”system to monitor performance.Establish our Responsible Individual Forum,our Outstanding Practitioner Forum and implement an e

276、xpanded safeguarding governance framework.Establish our Friends and Families Forums to enable their collective voice to inform policy and practice.KPIs CQC“Good/Outstanding”rating.Ofsted“Good/Outstanding”rating.Pottersbury Lodge students pose proudly with their certificates on GCSE Results Day 2020.

277、CareTech Holdings PLCAnnual Report and Accounts 202034Our Strategy and KPIs continuedObjectiveOur strategy is to offer a strong national presence with local brands and regional service delivery points.This supports development of local relationships while offering the comfort and security of a well-

278、resourced Group.Our services are in demand and occupancy has remained high despite unrecognised fears of local authority austerity impacting referrals.The nature of referrals in recent years has been towards the more complex end of the spectrum.New residents arrive in a CareTech care home following

279、a referral from a local authority or clinical commissioning group(“CCG”)care manager.Once a referral has been received,a resident assessment is typically followed by an assessment including a detailed matching of the proposed resident with a known or anticipated vacancy.The selection of new resident

280、s is undertaken with care and sensitivity to ensure the ongoing success of the service.This sometimes means that a home can have a short-term vacancy.Local authorities or CCGs are more likely to place a resident in a home that seeks to match each residents need with those of the people already livin

281、g there.This practice is commercially advantageous,maintains the success of an existing home,and helps to ensure continuing high referral levels.Progress this year CareTechs services are present on a multitude of purchasing frameworks across England,Scotland and Wales.These procurement tools allow p

282、roviders to bid for lots aligned to their provision type.An integrated referral process across the Group.Business development teams meeting regularly to have“strategic”discussions regarding the requirements of commissioners and this feedback allows the planning of future services.Priorities for 2020

283、/21 Maintaining regular engagement and communication with commissioners.To continue articulating our services offering to best position our provision for the appropriate service users.KPIs Mature and blended occupancy rate.3.Achieve high occupancy through matching CareTech Holdings PLCAnnual Report

284、and Accounts 202035Strategic ReportGovernanceFinancial StatementsFinancialRevenue430.0m(2019:395.0m)How this is calculatedRevenue measures how we have filled our capacity,the fees we have charged,together with the impact of acquisitions.Performance this yearRevenue has improved to 430.0m 8.9%year on

285、 year.This reflects the increase in organic growth achieved by the core business in part reduced by the reconfiguration of some properties,the improved Cambian performance,fee increases and the acquisition in the UAE in February 2020.Underlying EBITDA(pre IFRS 16)84.1m(2019:73.5m)Underlying EBITDA90

286、.9mHow this is calculatedEBITDA is operating profit stated before Interest,Tax,Depreciation,Amortisation,share-based payments charge and non-underlying items that are described in note 6 to the Financial Statements.Performance this yearThe EBITDA has improved by 10.6m,14.4%year on year.This reflects

287、 the EBITDA contribution from the improved margins in Cambian,organic growth achieved by the core business,which has been in part reduced by the reconfiguration work on some properties.Underlying profit after tax and non-controlling interest(pre IFRS 16)47.2m(2019:40.2m)Underlying profit after tax a

288、nd non-controlling interest 46.4mHow this is calculatedUnderlying profit after tax and non-controlling interest is the Groups profit after provision for taxation excluding non-underlying items such as amortisation of intangible assets after tax,which are fully described in note 6 to the Financial St

289、atements.Performance this yearThe profit after tax is 17%more than 2019 representing an improved return to shareholders reflecting the turnaround in Cambian,integration synergies and organic growth achieved by the core business.Underlying basic EPS (pre IFRS 16)43.02p(2019:37.6p)Underlying basic EPS

290、 42.26p How this is calculatedUnderlying basic earnings per share is the profit after tax divided by the weighted number of ordinary shares,which are fully described in notes 11 and 12 to the Financial Statements.Performance this yearThe underlying basic earnings per share has increased by 14%in the

291、 year.KPIs help us to measure the Groups performance against our strategy and objectivesCareTech Holdings PLCAnnual Report and Accounts 202036Our Key Performance IndicatorsOperating cash conversion103.9%(2019:90.2%)How this is calculatedCash flow from operations before non-underlying items and tax(a

292、nd excluding capex)divided by EBITDA.Performance this yearOperating cash conversion was strong at 104%EBITDA to cash conversion.Net debt268.9m(2019:291.1m)How this is calculatedNet debt comprises cash and cash equivalents net of bank loans and borrowings and HP leases previously accounted for under

293、IAS 17 excluding Project Teak sale and leaseback.Net debt remains unchanged following the adoption of IFRS 16.Performance this yearThe Group continues to have a strong financial position with net debt at 30 September being 268.9m compared with 291.0m at 30 September 2019.Operating cash conversion wa

294、s strong which was partially offset by the cash consideration paid for the UAE acquisition,development opportunities and integration costs associated with the Cambian acquisition.OperationalCapacityAdults Services1,997places(2019:1,968 places)Childrens Services1,959places(2019:1,933 places)Fostering

295、1,028places(2019:1,178 places)How this is calculatedThe Groups capacity is the total number of places that the Group is able to offer at that date.It is a total including residential care beds,independent supported living accommodation,community support service users and children that foster carers

296、can currently look after.Performance this yearAdults Services increased 29 places to 1,997 due to 41 beds in two new residential sites in Specialist Services,a net four new supported living contracts offset by 16 beds withdrawn.Childrens Services increased to 1,959 mainly due to 27 development proje

297、cts,22 capacity increases,eight beds withdrawn and 15 reconfigurations.Fostering decreased to 1,028 due to blocked beds as a result of COVID-19 and some foster parent leavers.Mature Estate Occupancy83%How this is calculatedThe Mature Estate Occupancy is the total number of Adult and Children service

298、 users placed in services that were open throughout the year.Performance this yearThe mature estate occupancy has remained broadly unchanged.The occupancy of the Cambian business is affected by the timing of the start of the educational year because a number of non-residential Cambian schools operat

299、e on a 38-week basis with the new education term commencing in October.Blended occupancy80%How this is calculatedBlended occupancy is the total number of Adults and Childrens service users actually placed as a percentage of the Groups total capacity and so reflects facilities undergoing development

300、and reconfiguration.Performance this yearThe ratio has broadly remain unchanged and is also impacted by the timing of the start of the educational year because a number of non-residential Cambian schools operate on a 38-week basis with the new education term commencing in October.QualityRegulatory r

301、ating(%)facilities rated“Good”or“Outstanding”CQC Adult 91%(2019:95%)Ofsted82%(2019:82%)How this is calculatedThe markets that CareTech operates in are regulated by Ofsted and the CQC and their equivalents in Scotland and Wales.Each facility is inspected and given a score,with a range of outcomes fro

302、m“Outstanding”,“Good”,“Requires Improvement”to“Inadequate”(or equivalent).Performance this yearWhilst both CQC and Ofsted regulatory ratings are above the industry average,due to COVID-19,both CQC and Ofsted suspended all routine inspections from March 2020.Employee retentionAnnualised retention rat

303、e75%(2019:74%)How this is calculatedThe number of employees working for the year to 30 September 2020 as a percentage of the number of employees at 1 October 2019.Performance this yearMaintaining high levels of staff retention underpins our high service quality ratings.The Groups retention rate of 7

304、5%compares favourably to the industry average of 70%.CareTech Holdings PLCAnnual Report and Accounts 202037Strategic ReportGovernanceFinancial StatementsWhat we doWe are driven by our purpose to enable young people and adults with high acuity needs to live,learn,work and engage in their communities,

305、and achieve the best possible outcomes through their life experiences.We deliver this by providing Extraordinary Days Every Day to individuals in our care.We create homes and families and empower our service users to live independent livesOur Adults Services support people with learning disabilities

306、,individuals who have or are recovering from mental illness,people with autistic spectrum disorder,individuals who have one or more physical impairments,and provide care and rehabilitation for adults with acquired brain injury(“ABI”).We deliver services in residential,day care and a wide choice of c

307、reative supported living settings.Our Childrens Services nationally recognised for their expertise cover assessment,residential care,education and fostering options.We specialise in supporting children and young people with very complex needs including those with challenging behaviours,sexually offe

308、nding behaviours,or who have emotional and behavioural disorders.We carefully and professionally support any child irrespective of their need for being in social care and our comprehensive high quality services include the UKs largest portfolio of specialist schools and colleges.CareTech has pioneer

309、ed outcomes and progression along the Care Pathway including transition services for young people leaving care and for adults who are making the move into their own home after a lifetime in residential or institutional settings.We are accelerating digital adoption within the Group and blending care

310、and technology in new meaningful ways so even service users with the most complex of needs can participate and flourish in society.Read more about our service offerings on page 5.Residents from Ivy House created this replica of their home for the CareTech Arts and Crafts Competition 2020.The incredi

311、bly personal 3D piece was a Regional Winner for the Central region.Children from Spark of Genius residential care in Scotland learn and play on the beach.CareTech Holdings PLCAnnual Report and Accounts 202038Our Business Model Loraine poses proudly in front of the rainbow Window of Hope she created

312、with her fellow residents at their Supported Living service during the Covid-19 pandemic.Cambian students complete an inflatable assault course on the lake.How we make moneyHow we do itIn the UK,local authorities,clinical commissioning groups and health boards commission Group services.Funding is re

313、ceived in four main ways:Framework agreementsFramework agreements are typically awarded to providers on a non-exclusive basis pursuant to a public tender.These agreements outline various service and reporting obligations as well as pricing terms.Framework agreements can be set up for any period of t

314、ime,although a typical framework agreement is at least two years in length.The actual care package to be provided for an individual in a providers care and the pricing for such services is agreed on a case-by-case basis at the time an assessment of their individual needs is made.Spot contractsMost a

315、dmissions and referrals remain based on“spot”contracts,which are individual placement agreements.Spot contracts generally have a four week notice period to terminate the contract and typically do not have a minimum term.Spot contracts provide greater operational flexibility and are appropriate for b

316、espoke care packages to meet the high severity support needs of the individuals in a providers care.Fees are typically negotiated on a case-by-case basis.Block contractsA limited amount of specialist care funding is provided through block contracts.Such block contracts are negotiated for a specific

317、volume of service,pre-booked over a fixed period of time,usually for a specified price.Private pay/insurancePrivate pay services make up a very small part of our revenue as the UK publicly funded bodies will typically provide funding.In the UAE,insurance plays a larger role in funding of services.We

318、 listen to our stakeholdersWe seek to engage in constructive dialogue with stakeholders to gather a holistic understanding of their key expectations and concerns.Our key stakeholders include shareholders,service users and families,regulators,suppliers,customers and the communities in which we operat

319、e.Some examples of how CareTech purposefully engages with key stakeholder groups are set out on page 41.We look after our peopleWe remain committed to ensuring employees share in the success of the Group and fully appreciate that CareTechs performance is affected by the relationship we have with the

320、m.We promote our values and culture by helping our employees and supporting them with regular supervision,training and clear career development programmes.Read more about our people on page 45.We have a person-centred approach to our innovative Care PathwaysCare and support is characterised by optim

321、ism and a genuine belief in the abilities of our service users.Everyone we support has an opportunity to make progress in their lives and our professional teams work hard to help individuals in our services make progress.Many years ago we began to describe our services as a Care Pathway,making clear

322、 our intention to break away from the old belief that care is for life.We have delivered on this commitment and everyone we support,from young children to profoundly disabled adults,shares our approach to maximise their independence.This is great for service users,rewarding for our staff and strongl

323、y supported by those who commission and support our services.Read more about our person-centred approach on page 45.CareTech Holdings PLCAnnual Report and Accounts 202039Strategic ReportGovernanceFinancial StatementsHow we do itWe live our culture of respect,quality and careOur aim is to provide a s

324、afe working environment for service users,staff and visitors.Our vision is to be the highest quality provider across the breadth of our services.Our upper quartile quality and compliance performance is against a backdrop of continued raising of quality standards in the sector reflected in an increas

325、ingly stringent regulatory environment.We continue to resource our own highly experienced internal quality and compliance teams who undertake a programme of regular inspections and assessment and give constructive feedback backed by training and supervision if the requirement is there.We engage the

326、services of outsourced expert advisers ensuring best practice.Our independent Care Quality and Governance Committee provides rigorous oversight of our regulatory and safeguarding performance and has been strengthened by the appointment of Professor Moira Livingston as Chair.We are continuing to eval

327、uate ways in which we can improve our standards of care and are investing significantly in the training and induction of staff.Read more about the work of our Care Quality and Governance Committee on page 66.We think differentlyCOVID-19 has revealed the step change in digital technology adoption tha

328、t is required by social care.Assistive technology is the means to unlocking the digital world to millions of disabled people from accessing information and having a voice to buying products and services.Purple is at the forefront of changing the disability conversation for disabled people,businesses

329、,communities and government.The aim is to move the conversation from one anchored in welfare,charity and vulnerability to one of value,contribution and opportunity.Read more about Purple on page 15.Read more about Smartbox on page 15.We believe in doing business responsibly Doing business the right

330、way is of fundamental importance to us.A successful business needs to operate in healthy,thriving communities and needs to be seen as a good neighbour to those communities.We have direct involvement in a variety of community-based programmes,further improving our service reputation and helping to fo

331、ster a strengthened relationship with local authorities.In addition to supporting our communities,we recognise our responsibility to the wider global community and are taking action to minimise our impact on the environment.This includes carbon reduction,waste reduction and careful use of resources.

332、Being a socially responsible organisation with a focus on developing our ethical standards aligned with our commercial objectives remains a core aim.Considering non-financial values such as reputation,employee commitment,environmental footprint and service user fulfilment and independence helps us d

333、evelop longer-term opportunities.Behaving responsibly and maximising the benefits of a strong relationship with our stakeholders is an integral part of a continuing process of building long-term value.Read more about our approach to responsible business on page 16.Read more about the CareTech Foundation on page 17.Nkeesha tries out her new Smartbox grid device.She was the first person to receive o