Caretech Holdings PLC
Annual Report 2021

CareTech Holdings PLC    Annual Report and Accounts 2021
CareTech Holdings PLC
5th Floor  
Metropolitan House  
3 Darkes Lane   
Potters Bar   
Hertfordshire   
EN6 1AG  
Tel: 01707 601800 
www.caretech-uk.com
CareTech Holdings PLC  / 
Annual Report and Accounts 2021

Operational Highlights
COVEBERRY 
 
In November 2020, we completed the 
transfer to the CareTech Group of seven 
services previously operated by The 
Huntercombe Group. This broadens our 
Adults Specialist Service pathway by adding 
highly specialised facilities for the treatment 
of adults with complex learning disabilities, 
autism and mental health diagnoses.
ACQUISITION 
OF SMARTBOX
 
In October 2020, we acquired Smartbox,  
a maiden investment for the Group’s Digital 
investment strategy. Smartbox is a global 
provider of augmentative and assistive 
technology for people with disabilities.  
In joining CareTech, Smartbox technology 
extends our Care Pathway enabling us to 
deliver blended care and technology solutions 
to our service users in the UK, shaping a  
new market for this technology in social care,  
while supporting Smartbox’s growth around 
the world.
ACQUISITION 
OF REHAVISTA 
 
In November 2021, we acquired REHAVISTA’s 
reach and expertise which is unparalleled in 
Germany, and estimated to be the second 
largest funded AAC market globally after  
the USA. With its deep knowledge of assistive 
technology and established routes to 
market, this acquisition provides a significant 
opportunity for Smartbox to expand the 
products and services available in Germany, 
expanding on the existing partnership 
between Smartbox and REHAVISTA, and 
across Smartbox’s global customer base, 
which spans more than 30 languages and 
45 distributors.
QUALITY (‘CQC’)
CAPACITY
CHILDREN’S SERVICES
EMPLOYEE RETENTION
ADULTS SERVICES
FOSTER CARE
QUALITY (OFSTED)
86%
(2020: 91%)
4,979places
(2020: 4,984 places)
2,000places
(2020: 1,959 places)
71%
(2020: 75%)
2,104places
(2020: 1,997 places)
875places
(2020: 1,028 places)
80%
(2020: 82%)
CareTech Holdings PLC  /  Annual Report and Accounts 2021
REVENUE
£489.1m
Increased by 13.8% (2020: £430m)
UNDERLYING PROFIT 
BEFORE TAX (I)
£68.3m
Increased by 14.6% (2020: £59.7m)
OPERATING PROFIT 
£79.5m
Increased by 49.0% (2020: £53.4m)
FINAL DIVIDEND PER SHARE 
9.5p
Increased by 8.6% (2020: 8.75p)
OPERATING CASH FLOWS BEFORE 
NON-UNDERLYING ITEMS (I) 
£96.6m
(2020: £94.2m)
UNDERLYING EBITDA (I) 
£100.5m
Increased by 10.5% (2020: £90.9m)
UNDERLYING BASIC 
EARNINGS PER SHARE (I) 
47.87p
Increased by 13.3% (2020: 42.26p)
BASIC EARNINGS PER SHARE 
28.80p
Increased by 25.9% (2020: 22.88p)
PROPERTY PORTFOLIO  
VALUATION (II) 
£930.0m
with net debt(i) of £258.7m
Financial Highlights
RESPONSIBLE BUSINESS 
 
In 2021, we developed our new Responsible Business 
strategy – CARE4, spanning Planet, People, Innovation 
and Communities.
CARE4 Planet  
a better future for the planet
CARE4 People 
a better future for our people
CARE4 Innovation  
a better future for business
CARE4 Communities  
a better future for  
our communities
(i)	 This report provides Alternative Performance Measures (‘APMs’) which are not defined or 
specified under the requirements of International Financial Reporting Standards (‘IFRS’). The 
Group uses these APMs to improve the comparability of information between reporting periods 
and divisions, by adjusting for certain items which impact upon IFRS measures, to aid the user 
in understanding the activity taking place across the Group’s businesses. APMs are used by 
the Directors and management for performance analysis, planning, reporting and incentive 
purposes. A summary of APMs used are defined in the appendix on pages 173 and 174. The 
appendix also contains a reconciliation to their closest equivalent statutory measure.
(ii)	 Knight Frank Property portfolio valuation in October 2021. Valuation is unaudited and Property 
is stated at cost less accumulated depreciation and impairment losses in the balance sheet.
STRATEGIC REPORT
IFC	 Operational Highlights
01	 Financial Highlights
02	 Our Purpose
04 	 At a Glance
08 	 Our Business Model
12 	 Investment Case
14	 Group Executive Chairman’s Statement
18 	 ‘Catherine’s’ Statement
20 	 Group Chief Executive’s Statement and Performance Review
26	 Our Market
32 	 Our Strategy and KPIs
34 	 Strategy in Action 
43	 Our Key Performance Indicators
46	 Engaging with our Stakeholders
52 	 Statement by the Directors – s172
54	 Operating Responsibly
64	 Our Divisional Performance
68	 Principal Risks and our Strategic Response 
72	 Group Financial Review
75	 Longer-term Viability Statement
GOVERNANCE
76	 Corporate Governance Report
78	 Board of Directors
86	 Care Quality and Governance Committee
89	 Directors’ Report 
92	 Directors’ Remuneration Report
101	 Statement of Directors’ Responsibilities 
FINANCIAL STATEMENTS
102	Independent Auditor’s Report to the Members 
of CareTech Holdings PLC
114	 Consolidated Income Statement
115	 Consolidated Statement of Comprehensive Income
116	 Consolidated Statement of Financial Position
117	 Consolidated Statement of Changes in Equity
118	 Consolidated Statement of Cash Flows
119	 Notes to the Financial Statements
165	 Company Statement of Financial Position
166	Company Statement of Changes in Equity
167	 Notes to the Company Financial Statements
173	 Appendix – Alternative Performance Measures
175	 Directors and Advisers
01
 Read more on page 56.
Strategic Report

STRATEGIC REPORT
Independence means having the confidence 
and skills to be able to live, learn, thrive and 
engage in community activities – a future 
that is unique to them and informed by 
their choices. 
We help them to master the essentials of daily 
life, like being able to cook, shop, keep house, 
build relationships and stay well and safe.  
We provide access to learning – academic or 
playful. We build the confidence and skills for 
employment for those who would like to work 
in any capacity. And we nurture the ability and 
self-awareness to engage socially and build 
lasting relationships. 
We achieve all of this thanks to the loving, 
supportive, fun and therapeutic environments 
that our specialist professional teams create 
and with the courage and determination  
of those in our care. 
Our vision has driven our success. Our purpose 
is shared by our staff as well as by the people 
in our care. We want everyone in the CareTech 
family to have a bright future and we work 
tirelessly towards that aim. 
Haroon Sheikh
Group Chief Executive Officer
6 December 2021
Our Purpose
We enable children, young people 
and adults with complex needs to 
make their own life choices, and build 
confidence and independence to live, 
learn, thrive and engage in their families 
and communities for more independent 
futures that meet their aspirations.
OUR PURPOSE
OUR VISION IS FOR A WORLD WHERE 
THERE IS EQUAL OPPORTUNITY FOR 
A LIFE FULLY LIVED.
03
Strategic Report
02
CareTech Holdings PLC  /  Annual Report and Accounts 2021

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 and professionally support 
any child irrespective of their need for being in social care and 
our comprehensive high-quality services include the UK’s largest 
portfolio of specialist schools and colleges.
Our aim is to ensure the children and young people we care for 
have safe, stable and happy family-based experiences. We offer 
training and support to help our foster parents provide the best 
kind of parenting for their foster child.
2,000places
875places
CAPACITY
CAPACITY
Children’s Services
Foster Care
At a Glance
The CareTech family of companies provide high-quality 
care and support across the whole social care spectrum 
for children and adults below retirement age.
Our Adults Services support people with learning 
disabilities, 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 acquired brain 
injury (‘ABI’). We deliver services in residential, day care  
and a wide choice of creative supported living settings.
Our Children’s Services – recognised nationally 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 and professionally support any 
child, irrespective of their need for being in social care,  
and our comprehensive high-quality services include the 
UK’s largest portfolio of specialist schools and colleges.
CareTech has pioneered 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 and technology in new meaningful ways, 
so even people with the most complex of needs can 
participate and flourish in society.
OUR SERVICES
Our Adults Services support people with learning disabilities, 
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 people with acquired brain injury. We deliver 
services in residential, day care and a wide choice of creative 
supported living settings.
2,104places
CAPACITY
Adults Services
WHO WE ARE
04
05
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

SITES ACROSS THE UK
550+
PEOPLE
11,000+
PROPERTY PORTFOLIO
£930m
LOCAL AUTHORITIES ACROSS 
ENGLAND, SCOTLAND AND WALES
300+
WHERE WE OPERATE
	  Adults
	  Children's
	  Fostering
	  Digital
	 Registered Offices
UNITED ARAB EMIRATES
*	 The Company has undertaken a scheduled property revaluation, 
which Knight Frank has valued at £930 million. Property is stated 
at cost less accumulated depreciation or impairment losses in the 
balance sheet.
Breakdown of revenue
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 of needs  
can participate and flourish in society.
Digital Technology
At a Glance continued
OUR SERVICES CONTINUED
Adults Services – 34.6%
Foster Care – 7.8%
Children’s Services – 55.0%
Digital Technology – 2.6%
06
07
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

HOW WE DO IT
We listen to our stakeholders
We seek to engage in constructive dialogue with 
stakeholders to gather a holistic understanding of their 
key expectations and concerns. Our key stakeholders 
include shareholders, people in our care and their families, 
regulators, suppliers, customers and the communities in 
which we operate. 
  Some examples of how CareTech purposefully 
engages with key stakeholder groups are set  
out on pages 46 to 51. 
We look after our people
We are committed to ensuring employees share in 
the success of the Group. 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 51. 
We have a person-centred approach to  
our innovative Care Pathways
Care and support are characterised by a genuine belief in 
the abilities of the people in our care 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 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 the people 
in our care, rewarding for our staff and strongly supported 
by those who commission and support our services.
  Read more about our person-centred approach  
on pages 47 and 48. 
We live our culture of respect, quality and care
Our aim is to provide a safe environment for people in our 
care, staff and visitors. Our aim is to be the highest quality 
provider across the breadth of our services. 
Our quality and compliance performance is achieved 
against a backdrop of continued raising of quality 
standards in the sector reflected in an increasingly 
stringent regulatory environment. Our highly  
experienced internal quality and compliance teams 
undertake a programme of regular inspections and 
provide constructive feedback, backed by training  
and supervision as required. We engage the services  
of outsourced expert advisers ensuring best practice.
We 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 about the work of our Care Quality 
and Governance Committee on page 86. 
We are innovators in social care
Through the lockdowns associated with COVID-19, we 
have come to know how essential it is to level the digital 
playing field for people with disabilities and complex 
needs. Addressing this is a significant driver for CareTech’s 
Digital Strategy, which over the coming decade seeks to 
reach a million people around the world to improve their 
quality of life and life chances. 
To deliver on this ambition, CareTech embarked on a 
buy, build and partner roadmap to develop a sector first 
Digital Pathway of services encompassing screening and 
diagnosis for developmental disabilities, delivering online 
therapeutic interventions for a range of behavioural 
conditions, and making available augmentative and 
assistive technology and thereby opening up a world of 
opportunity for people with disabilities and complex needs 
– from accessing information and having a voice to buying 
products and services. 
Underpinning this Digital Pathway is a drive for our UK 
services to act as living labs in developing and trialling 
new service models that blend care and technology 
in innovative and meaningful ways. We designed and 
embarked on our first project during this year, piloting with 
our schools and care facilities’ technology that augments 
education and care plans to provide a voice to the people 
in our care with complex communication needs. This 
pilot, the 100 Voices initiative, is demonstrating promising 
qualitative results, will inform future service models and 
is receiving keen interest from social care and education 
commissioners interested in seeing greater adoption of 
technology within the social care sector. 
Our Business Model
WHAT WE DO
HOW WE GENERATE REVENUE
In the UK, local authorities, clinical 
commissioning groups and Health  
Boards commission Group services. 
Funding is received in four main ways:
Framework agreements
Framework 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 time, although at least two years 
is typical. The actual care package to be provided for an 
individual and the pricing is agreed on a case-by-case basis.
Spot contracts
Most admissions 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 bespoke care packages to meet the 
high severity support needs of the individuals in a provider’s 
care. Fees are typically negotiated on a case-by-case basis.
Block contracts
A limited amount of specialist care funding is provided 
through block contracts. Such block contracts are 
negotiated for a specific volume of service, pre-booked 
over a fixed period of time, usually for a specified price. 
Private pay/insurance
Private 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. The Thiqa programme is a comprehensive 
healthcare programme offered by the Government of  
Abu Dhabi to UAE Nationals and those of similar status  
in the Emirate. 
Digital Technology
The Augmented and Assistive Communication industry  
is typically funded by local healthcare providers (i.e. NHS 
in the UK).
WE ARE DRIVEN BY OUR PURPOSE TO 
ENABLE CHILDREN, YOUNG PEOPLE AND 
ADULTS WITH COMPLEX NEEDS TO MAKE 
THEIR OWN LIFE CHOICES, AND BUILD 
CONFIDENCE AND INDEPENDENCE  
TO LIVE, LEARN, THRIVE AND ENGAGE  
IN THEIR FAMILIES AND COMMUNITIES 
FOR MORE INDEPENDENT FUTURES  
THAT MEET THEIR ASPIRATIONS.
08
09
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

The strategy centres on our positive social impact – our corporate 
purpose – and in the course of 2022 we will develop a methodology 
that enables us to monitor and report our impact.
2022 will also see the launch of One Planet Living across our services 
– a grassroots campaign to ensure that all our services are aligned to 
our corporate sustainability commitments, implementing activities to 
reduce energy use, reduce waste, source locally and ensure responsible 
procurement of goods and services. Our services with gardens will 
develop nature positive plans such as wildlife-friendly planting,  
home-grown vegetables and composting.
CARE4 will enable us to respond to a rapidly evolving business 
environment that is increasingly demanding a formal and transparent 
approach to sustainability, allowing us to meet the requirements of our 
commissioners whilst also benefitting from non-financial values such 
as reputation enhancement, employee commitment, talent attraction, 
community engagement, environmental footprint and service user 
fulfilment and independence.
	 Read more about CARE4, our approach to responsible business, 
on page 10.
	 Read more about the CareTech Foundation 
on page 61.
We believe in doing business responsibly 
We are committed to developing a business that is built  
on the foundations of responsibility and ethical practice that are 
inherent in our model, and that builds value for all our stakeholders. 
In 2021, we developed our new Responsible Business strategy – 
CARE4 – to help us to achieve that goal.
The CARE4 strategy is rooted in our corporate purpose  
(building independence to enable better futures) and addresses  
the sustainability issues that are material to our business. 
We will report our progress through an annual Purpose Report  
using the World Economic Forum’s 21 core ESG metrics in 
combination with narrative that describes our commitments  
and activities across four key areas:
Our Business Model continued
HOW WE DO IT CONTINUED
Governance
Our belief in creating value for all of our stakeholders drives our commitment 
to good governance, transparency and effective engagement with all involved 
in our business, safeguarding its long-term success.
CARE4
Planet
We know that healthy lives go hand in hand 
with a healthy planet. We are committed  
to caring for the wellbeing of our planet  
to safeguard all our futures.
CARE4
Innovation 
We believe that good business creates value 
for society as well as for those whom we 
care. Our innovative approaches will expand 
our business for a successful future, helping 
us to enable independence for more people, 
positively impacting more lives.
CARE4
Community
Thriving communities are central to 
our success and we aim to be an active 
contributor in all the locations in which we 
operate. We also support the vital role of 
the wider social care sector through the 
CareTech Foundation.
CARE4
People
Our business exists to facilitate better lives – 
for the people in our care and the people who 
work for us. We aim to be the sector’s best 
workforce and so we offer market-leading 
employment opportunities, creating better 
futures for our employees.
Social Impact
The purpose of our business is to enable children, young people  
and adults with complex needs to make their own life choices,  
and to develop confidence and independence to live, learn, thrive  
and engage, building better futures.
10
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report
11

Strategy
Clear strategy of being 
a leading international 
integrated provider of 
specialist social care 
services for children 
and adults, delivering 
high-quality and care 
excellence.
	 Discover more about our strategy on page 32
Sector
Established system 
of public and private 
providers of health 
and social care.
	 Discover more about the 
sectors in which we operate  
on page 28 
Market
Increasing demand for 
specialist adults and 
children’s care.
	 Discover more about our  
markets on pages 26 to 31
Investment Case
International
Well-positioned to 
capitalise on opportunities 
in the Gulf, having 
established our presence 
in the region two years 
ago with our maiden 
investment in the AS Group.
	 Discover more about development opportunities 
in the Group Chief Executive's Statement and 
Performance Review on pages 24 and 25 
Management
Strong management 
team with a broad 
range of experience.
	 Discover more about our Board 
of Directors on pages 78 and 79 
Technology
Opportunity to 
develop a sector first 
Digital Pathway of 
services for people 
with disabilities and 
complex needs.
	 Discover more about our Digital 
Technology division on pages 17 and 67
12
13
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

Farouq Sheikh OBE
Dear Shareholder,
It is my pleasure to present another strong 
set of results for the period ending 30 
September 2021.
In these unprecedented times, CareTech  
has continued to demonstrate the significant 
resilience of its business model by delivering 
strong growth in all of its key performance 
indicators. This is underpinned by a robust 
performance in its core activities with an 
emphasis on accelerated organic growth 
initiatives complemented by selective bolt-on 
acquisitions and, most importantly, delivering 
on the previously outlined strategy of the 
creation of the Technology pathway and 
International division. Both of these initiatives 
have been successfully implemented and have 
significant further opportunities we can build 
upon in the coming years.
On behalf of the Board, I would like to 
thank our staff who have worked tirelessly 
throughout the year, enabling us to deliver 
excellent quality care to individuals in 
our services. I am enormously proud 
particularly of our front-line colleagues in 
delivering Extraordinary Days, Every Day 
for our service users. 
During a year dominated by the COVID-19 
pandemic we made two important strategic 
moves. In October 2020, we acquired 
Smartbox, a market-leading creator of 
software, hardware and content that helps 
individuals without speech to have a voice 
and live more independently. This was an 
important milestone for our newly established 
Digital Technology division, established to 
broaden our Pathway offering to include 
digital care services. Secondly, in November 
2020, we completed the transfer of seven 
specialist services previously operated by 
The Huntercombe Group and rebranded 
Coveberry. This broadens our specialist offer 
by adding facilities for the treatment of adults 
with complex Learning Disabilities, Autism  
and Mental Health diagnoses. 
In the UAE, we continued to see exciting 
prospects for our local operating brands, 
with further investments planned and service 
developments expected to establish our long-
term goal of being the first whole person Care 
Pathway of services for people with disabilities 
and complex needs in the region.
Continued strong performance during 
COVID-19 showing resilience and 
growth prospects further underpinned.
Group Executive Chairman’s Statement
15
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report
14

Extending our Digital Technology 
offering
On 29 November 2021, we announced the 
acquisition of REHAVISTA GmBH (‘REHAVISTA’) 
and its subsidiary company LogBUK.
REHAVISTA is Germany’s largest provider of 
augmentative and alternative communication 
(‘AAC’) products and services, employing over 
170 staff. The company, which has six offices 
across Germany, provides a range of AAC and 
assistive technology products and has a strong 
reputation for excellent service. LogBUK is a 
subsidiary company to REHAVISTA, providing 
independent speech and language therapy 
to help AAC users achieve the best outcomes 
through specialist clinical support.
REHAVISTA’s reach and expertise is 
unparalleled in Germany, estimated to be the 
second largest funded AAC market globally 
after the USA. With its deep knowledge of 
assistive technology and established routes to 
market, this acquisition provides a significant 
opportunity for Smartbox to expand the 
products and services available in Germany, 
expanding on the existing partnership 
between Smartbox and REHAVISTA, and 
across Smartbox’s global customer base, 
which spans more than 30 languages and  
45 distributors.
REHAVISTA and LogBUK, headquartered in 
Bremen, generated revenue in excess of €16m 
in 2020. It is expected that the acquisition will 
be immediately earnings enhancing.
A progressive dividend
We continue to maintain a progressive 
dividend policy. The Board has proposed a 
final dividend of 9.5p (2020: 8.75p) per share 
bringing the total dividend for the year to 14.1p 
(2020: 12.75p) per share. This represents a full 
year increase of 10.6% year on year. The final 
dividend will be paid, subject to shareholder 
approval, on 4 May 2022, with an ex-dividend 
date of 3 March 2022 and an associated 
record date of 4 March 2022.
Embedding and enhancing 
sustainability 
The Board is increasing its focus on 
environmental, social and governance (‘ESG’) 
initiatives, which we believe represent value 
drivers for the Group. We have continued to 
make good progress with the development 
of our ESG strategy during a year of many 
challenges, and I look forward to the 
publication of our inaugural Purpose Report  
in early 2022. To oversee the development 
of this important area of work, we have 
appointed Jonathan Freeman as the Group’s 
first Sustainability Director. Jonathan will 
report to our CFO, and ESG will become  
a core part of the Board’s agenda. 
 Details of our strategy can be 
found on page 32. 
Strengthening Board and  
Operational leadership team
The search for a new Chair of the Audit 
Committee is well underway and once this 
appointment is made, Karl Monaghan will 
retire from CareTech’s Board. In addition, we 
plan to appoint an additional independent 
Non-Executive Director during 2022 to 
further strengthen our Board.
With the integration of Cambian now 
complete and, given the opportunities  
to further grow our existing core services 
together with the significant opportunities 
both Digital Technology and International 
bring we have taken the opportunity to 
strengthen our operational leadership team. 
This sets us up well for the next phase of 
growth both here in the UK, International  
and the Digital Technology division. 
Outlook and prospects
This year has affirmed our belief that we have 
a well-executed investment strategy, which 
meets a critical social care need and has 
demonstrated resilience. Our fundamentals 
remain strong and we remain committed  
to providing high-quality care to those we 
look after. 
CareTech enters the new financial year in 
a strong financial position, underpinned by 
a significant property portfolio and strong 
cash generation. Alongside its successful 
growth initiatives, the Group continues to 
see an active pipeline of bolt-on acquisition 
opportunities, growth in the Gulf region and 
exciting opportunities to develop our Digital 
Technology division. 
Finally, I would like to thank our shareholders 
for their continued support, and my fellow 
Board members for their commitment 
throughout the year.
Farouq Sheikh OBE
Group Executive Chairman
6 December 2021
Group Executive Chairman’s Statement continued
Financial results and position 
CareTech performed well during the year  
to 30 September 2021 with financial  
highlights as follows:
	
– Robust financial performance slightly  
ahead of market expectations.
	
– Revenue increase of 13.8% to £489.1m. 
	
– Underlying EBITDA increase  
of 10.5% to £100.5m.
	
– Underlying basic EPS increase  
of 13.3% to 47.87p. 
	
– Statutory basic EPS increase  
of 25.9% to 28.80p.
	
– Net debt reduced to £258.7m, underpinned 
by a significantly increased new property 
portfolio valuation of the Group’s freehold 
and long leasehold at £930.0m, with 
leverage of 2.7x adjusted EBITDA.
	
– Increased final dividend of 9.5p declared 
and dividend policy reaffirmed.
Group revenue was £489.1m, an increase of 
13.8% driven by organic growth in Children’s 
Services, the acquisition of Smartbox in 
October 2020 and the portfolio of assets 
transferred from The Huntercombe Group in 
December 2020 to Adults Specialist Services. 
Group underlying EBITDA increased by 10.5% 
to £100.5m (2020: £90.9m) and underlying 
EBITDA margin was 20.5% (2020: 21.1%).
Underlying profit before tax increased 
by 14.6% to £68.3m (2020: £59.7m) and 
underlying basic earnings per share was  
47.87p (2020: 42.26p). 
Operating cash conversion was strong  
at 96.1% (2020: 103.9%) with net debt at 
30 September 2021 being £258.7m (2020: 
£268.9m) and net debt/adjusted EBITDA 
2.7x (2020: 3.1x). Cash generated during the 
period was used to fund growth through 
the acquisition of Smartbox for £5.4m (net 
of acquired cash) and £11.8m on property 
acquisitions/developments and £16.8m of 
maintenance capex. 
2021 
£000
2020 
£000
% change
Revenue
£489.1m
£430.0m
+13.8%
Underlying EBITDA
£100.5m
£90.9m
+10.5%
Underlying profit before tax
£68.3m
£59.7m
+14.6%
Underlying basic earnings per share
47.87p
42.26p
+13.3%
Statutory profit before tax
£66.2m
£37.8m
+75.1%
Statutory basic earnings per share
28.80p
22.88p
25.9%
Operating cash flows before non-underlying items
£96.6m
£94.2m
+1.7%
Final dividend per share
9.5p
8.75p
+8.6%
16
17
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

“I feel very lucky and am thankful  
for everything the staff do for me.”
We pride ourselves on delivering care which 
encompasses our five CareTech values: 
friendly, positive, person-centred, empowering 
and innovative. Most importantly, we cater to 
each person’s individual interests and needs, 
to ensure they receive tailored support.
One of our residents, Catherine, tells of  
her experience living in a CareTech  
residential home: 
“I have lived in a CareTech service for eight 
years and it is completely my home. I have 
painted my bedroom in the colours I like  
and the furniture is exactly what I wanted. 
The staff are extremely caring and make sure 
I have lots of chances to experience different 
things and meet new people. They are always 
there to talk to if I feel anxious about anything 
and are honest with me – I trust them and 
know they want the best for me. The staff take 
care of my health and are always helpful if I 
want to try something new. They make sure all 
of us build our confidence and I don’t feel silly 
asking a question if I don’t know something. 
I enjoy outings to the seaside at Brighton, 
shopping trips and going to the park. The  
staff took time to find out what I like to do. 
They know that I enjoy seeing films so we 
go to the cinema. I feel like I have the right 
balance of support and I get different help  
at different times depending on what I need. 
It was really hard during lockdown as we didn’t 
get to go out very much at all, but the staff 
were amazing and we did lots of activities 
indoors like karaoke nights and food from all 
over the world. One night we had an 80's party 
with fancy dress, balloons and props – we had 
old sweets and had to guess which song was 
being played, that was a really great day. I had 
my nails painted on our home spa day and 
me and my friends made salt dough on the 
weekends and painted it. We also did Bake Off 
with the staff and baked treats for everyone 
in our home, which is always good to do 
together. We like to celebrate occasions like 
Valentine’s Day and of course Christmas – we 
do a big menu with a roast dinner and give 
out presents. Then in the evenings there is 
dancing in the living room with everyone too!
The Blooming Marvellous competition is 
our chance to come together and make our 
garden a nicer place to hang out and it was 
one of my favourite lovely things to do. It used 
to look very overgrown and grey so we did 
a makeover. We planted flowers and created 
hanging baskets to make it more colourful and 
we also built a lot of decking. There were tyres 
that we painted as decorations and picnic 
tables in bright colours. It kept us busy  
and laughing together, we had lots of fun. 
I like that we recycle all of our plastic at our 
home and take it very seriously, because we 
care about our environment. I go to the bottle 
bank and everyone tries to keep our rubbish  
to small piles otherwise it is just a waste. 
We do upcycling and turn our old items 
of furniture like benches and boxes into 
pretty new things for the outdoor area and 
sometimes for indoors. We love having the 
animals visit our garden so we have made 
insect houses and rock gardens so they can 
come and say ‘Hello’. I had never mown a 
lawn before but I tried it and really enjoyed  
it – our garden looks so nice now and is the 
place where we keep fit and play games. 
The best thing about it is doing shows and 
dances to friends at other services, that’s  
when we feel like a community the most. 
I really like doing arts and crafts and there was a 
competition for the Queen’s Birthday so I made 
a birthday card for Her Majesty with her face 
on, using glitter and colouring pencils. I am a 
big fan of the Royal Family and even though  
I didn’t win, it was still really good to do. 
I feel very lucky and am thankful for 
everything the staff do for me. We share  
good moments and laughter at our house,  
we are definitely a family.”
‘Catherine’s’ Statement
THE SAFETY, WELLBEING AND INDEPENDENCE  
OF THE PEOPLE WE SUPPORT IS OUR UTMOST 
PRIORITY AND IT IS OUR PRIVILEGE TO CARE  
FOR AND TEACH EACH AND EVERY ONE OF  
THE ADULTS, CHILDREN AND YOUNG PEOPLE 
ACROSS THE GROUP.
18
19
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

As we continue to live with the 
effects of the global pandemic, 
CareTech has demonstrated the 
resoluteness of our purpose and 
resilience in our business model.
Group Chief Executive’s Statement and Performance Review
Haroon Sheikh
As we continue to live with the effects of the 
global COVID-19 pandemic, CareTech has 
remained resolute in its purpose to deliver the 
highest quality of care while demonstrating 
the resilience of our business model. These 
two fundamentals are the basis for our 
success in delivering Extraordinary Days, 
Every Day to transform outcomes for the 
people in our care and provide value for our 
commissioners.
Our commitment to high-quality care
Delivering the highest standards in education, 
support and care, and striving to continually 
improve outcomes for children, young people 
and adults, are the cornerstones of our 
purpose as a Group. Our recipe for success, 
tried and tested over two decades, is an 
unrelenting focus on quality, which in turn 
drives commercial success. 
These principles have remained particularly 
important during the pandemic which has 
caused so much disruption to society. During 
this time, we have remained focused on 
providing certainty and assurance to the 
people in our care that they are our absolute 
priority, as well as ensuring that our staff feel 
safe and supported. 
As the pandemic has eased, both CQC and 
Ofsted have re-commenced inspections. 
CareTech’s Adult CQC registered service 
quality ratings at 30 September 2021 were 
86% Good or Outstanding (2020: 91%) and 
our Ofsted ratings at 30 September 2021 
were 80% (2020: 82%). Whilst both our CQC 
and Ofsted ratings compares favourably to 
the national social care average, we remain 
committed to providing the highest quality 
of care across all our services and have 
comprehensive improvement plans in place 
to increase our quality ratings further.
Throughout the year our Executive-led 
COVID-19 taskforce has monitored sites 
on a daily basis and communicated to all 
services regularly.
Over the year we strengthened our internal 
Compliance and Regulation team, promoting 
Tom Burford to Group Executive Director 
– Quality Improvement. We introduced the 
Mind of My Own app across every children’s 
service enabling us to capture and “listen” to 
the voice of the young people in our services 
and respond to their individual needs. We 
launched our Dynamic Line of Sight (‘DyLOS’) 
across our portfolio of services which provides 
site-based KPI monitoring and added a new 
Management Information System across 
our schools.
20
21
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

We continue to recognise our front-line 
managers as the building blocks that make 
up a great service. During the year, we 
have doubled efforts to roll out the Group’s 
Management Development Programme, 
which is scheduled by 2022 to have reached 
all frontline management colleagues. 
Succession in operational leadership 
As CareTech continues to evolve and grow, 
and to address operational leadership 
succession, Nasir Quraishi and Jeremy Wiles 
have been promoted to the positions of Group 
Executive Director – Adults Services and 
Group Executive Director – Children’s Services 
respectively, replacing John Ivers’ role as Chief 
Operating Officer. Both Nasir and Jeremy have 
many years of experience in the sector and 
prior to these appointments held key senior 
management roles within CareTech.
John Ivers will continue with the Group in a 
newly created strategic role supporting the 
Company’s growth plans and working with  
the Executive team.
Commitment to our people
The wellbeing of our staff and those we 
look after is our utmost priority. The Board 
has continued the active engagement with 
our workforce, using virtual meetings where 
needed in line with COVID-19 protocols. We 
launched our COVID-19 fund last year, and 
continued to support staff, particularly those 
that have had to self-isolate and/or who  
faced hardship on account of the pandemic. 
Our Executive Committee also continued 
to engage extensively throughout the 
year, hosting a number of events to better 
understand how people were coping with 
the working environment caused by the 
pandemic, check in on their mental wellbeing 
and explore what the business could do 
to better support colleagues. I once again 
congratulate our recruitment and learning 
services teams who have recruited staff  
and on boarded them exceptionally well  
this year in circumstances that remain 
unusually challenging.
We initiated the inaugural Staff Consultative 
Committee during this period with 
representation from across the organisation 
to focus on the staff voice and workforce 
matters, with this engagement shaping our 
People strategy.
Over 2,500 staff were recipients of a ‘Thank 
You’, which is the formal recognition of our 
Applause Programme that was launched in 
October 2020. This is the key driver to ensure 
that recognition of our values and their impact 
on the care and support given is embedded 
throughout the organisation.
To celebrate the diversity within the Group,  
we launched our Equality, Diversity and 
Inclusion strategy, with work now underway 
to enhance our practices and culture. We are 
fully committed to fairness and inclusivity. 
Hiring the right people, based on CareTech’s 
values, is central to achieving our purpose. 
It has been widely publicised that the social 
care sector is facing challenges in respect of 
staff recruitment and cost inflation following 
the pandemic easing and we have seen the 
annualised staff retention rate fall during the 
year from 75% to 71%. We are well placed to 
navigate these sector-wide challenges and 
continue to consider innovative methods 
of recruitment, investing in the careers of 
our staff through best-in-class training and 
development. Our unwavering focus remains 
to be the employer of choice in our sector. 
The National Minimum and Living Wage 
percentage increase in April 2022 is in line 
with those we observed prior to the pandemic 
and, as with prior years, we would expect 
annual fee negotiations with Local Authorities 
to cover the majority of additional operational 
costs including increases to front-line staff pay.
As a learning organisation with a culture of 
‘open dialogue’ our most recent staff survey 
received over 3,000 responses, demonstrating 
positive engagement. Our focus for the 
coming year is to roll out Group-wide plans 
to improve staff experience and act upon the 
feedback we received. 
Group Chief Executive’s Statement and Performance Review continued
The wellbeing of our staff and those 
we look after is our utmost priority. 
The Board has continued the active 
engagement with our workforce, using 
virtual meetings where needed in line 
with COVID-19 protocols.
22
23
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

It is my enduring pleasure to lead CareTech, 
a business that has consistently made a 
lasting difference to so many lives. This 
year we warmly welcomed Smartbox and 
Huntercombe Services to the Group. They, 
along with the rest of the CareTech family, 
joined in the many initiatives to celebrate the 
achievements of our service users across the 
country, holding our annual Arts and Crafts 
awards, Easter Spirit event and a ‘Blooming 
Marvellous’ Gardening  competition. 
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 
appreciation and thank them for the manner in 
which they resolutely provide outstanding care 
to our service users, and support each other. 
Haroon Sheikh
Group Chief Executive Officer
6 December 2021
Group Chief Executive’s Statement and Performance Review continued
UK social care market
The demand for our services remains high, 
with those we care for presenting needs 
tending to be ever greater. Despite the 
pandemic we have continued to extend our 
services through the development of new 
specialist residential homes and supported 
living. Our growth is focused on meeting 
the demands of the market as well as 
adding ‘spokes’ to ensure optimal operating 
efficiency of existing services. Within the 
year we purchased 25 properties which 
will add capacity of 59. During the year, the 
Children’s division had 11 openings which 
added capacity of 22 beds. We can expect to 
at least achieve the same additional increased 
capacity within the coming year.
The market remains highly fragmented and 
we are well positioned to pursue a strong 
and active pipeline of organic and bolt-on 
acquisitions in both Adults Services and 
Children’s Services. 
CareTech International
Our Care Pathway, which encompasses 
Children’s and Adults Services in the UK 
and addresses the needs of individuals with 
complex needs, continues to receive attention 
from Gulf markets of the Middle East, a region 
with significant unmet need and paucity of 
operator expertise. 
We are well positioned to capitalise on 
these opportunities, having established our 
presence in the region two years ago with 
our maiden investment in the AS Group. Our 
UAE investment has weathered the pandemic 
extremely well and continues to grow its 
services. The business presently operates 
mental health services in outpatient clinics and 
inpatient hospital settings, and is developing a 
localised version of our Care Pathway, taking 
into account the nuances of the operating 
environment in the UAE. 
Growth in service developments include 
home health and social care services, 
physical healthcare, and a special education 
needs school development. Led by Shafqat 
Malik, CEO of AS Group, and supported by 
CareTech’s corporate expertise, we are well 
positioned to be the operator of choice for 
our specialisms and the first Company in the 
region to deliver a whole person Care Pathway 
of services for people with disabilities and 
complex needs.
Next stop in the region for our growth is 
Saudi Arabia. This is another market with 
significant need for international expertise 
for our specialisms, a transformational 
policy backdrop, and expected privatisation 
in health and social care. We have invested 
in a dedicated team led by Zafar Raja, CEO 
CareTech MENAP, to focus on Saudi Arabia. 
We are confident this investment in an 
in-country senior team will translate into 
opportunities and service developments 
during the coming year. 
Digital and innovation 
Technology 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 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 developing  
in-house applications. 
One example being the 100 Voices project, 
a collaborative effort to bring care and 
assistive technology together by blending 
Smartbox devices with ongoing education 
and care support plans for 100 service users 
across our Children’s and Adults services. The 
project is already demonstrating the impact 
of augmentative and assistive technology in 
opening a world of opportunity for people in 
our care who previously were limited by their 
communication impairments. 
Hill House, an outstanding school within 
our portfolio, is taking a whole school 
approach to the 100 Voices pilot and 
increasing participation and opportunities 
for communication for all students. New 
students are now having communication 
needs assessed on entry to the school, so 
appropriate technology can be provided 
to meet their needs. Similarly in the Adults 
Division our Selwyn services are adopting 
the technology at scale and along with the 
technology from the Rix Centre, University 
of East London, are trailblazing care and 
technology coming together in new and 
meaningful ways.
These pilot projects are potentially not only 
transformative for CareTech, but also for the 
wider social care sector that urgently needs 
to adapt technology at scale to improve 
outcomes and efficiency. We recognise the 
enormous digital innovation opportunity our 
sector standing presents, and for this reason 
are accelerating focus and investment in this 
area in coming years. 
Summary and outlook 
The global pandemic continues to test the 
resilience of UK PLC and civil society across 
the world. I am pleased to report that our 
strategy in the markets we serve has proven 
to be durable and robust. In this 27th year 
of our corporate journey the Group has 
demonstrated that commitment to purpose  
is as relevant today as it was when we opened 
our first small care home. I remain confident 
about CareTech’s outlook and prospects, 
to reach more people with complex needs 
at home and overseas, through a blend 
of high-quality services and our extended 
digital capability. 
24
25
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

CHILDREN IN UK LOOKED AFTER 
OUTSIDE FOSTER CARE
10,080
CHILDREN IN INDEPENDENT SECTOR 
SPECIAL SCHOOLS AND COLLEGES
21,817
PLACED IN FOSTER CARE IN ENGLAND
54,870
Children’s Services
In 2020, the total market for specialist 
Children’s Services was worth approximately 
£5.9bn. The market is growing for 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.
Data from Laing and Buisson Children’s Services  
Market Report 5th edition 2020 report
Our Market
#1 
INCREASING DEMAND FOR SPECIALIST  
ADULTS AND CHILDREN’S CARE
YOUNGER ADULTS IN  
RESIDENTIAL CARE SETTINGS
63,000
YOUNGER ADULTS IN NON-RESIDENTIAL 
CARE SETTINGS
297,000
PROPORTION OF UK POPULATION  
WITH SPECIFIC MENTAL DISORDERS
13%
Adults Services
The Adults Services care market in which the 
Group operates in the UK market is worth 
an estimated £12.5 billion per annum and 
estimated to be growing by 2–3% per annum. 
The principal drivers of demand for adults 
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 into 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 
that 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 from housing 
benefit allowance.
Data from Laing and Buisson Adult  
Specialist Care 4th edition 2020 report
26
27
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

FOSTER CARE MARKET ACROSS 
ENGLAND WORTH 
£1.75bn
£791m	
Independent sector
£956m	
Public sector
MARKET GROWTH RATE
3.7 % p.a.
*	 Data from Laing and Buisson Adult Specialist  
Care 4th edition 2020 report
**	 Data from Laing and Buisson Children’s Services 
Market Report 5th edition 2020 report
The UK has an established system of public 
and private providers of health and social 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 focuses money on the areas 
of highest need such as complex children, 
very disabled or complex people with 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’. 
Our Market continued
#2 
ESTABLISHED FUNDING MODEL  
FOR HEALTHCARE
MARKET FOR RESIDENTIAL LEARNING 
DISABILITIES AND SUPPORTED LIVING 
WORTH AN ANNUAL 
£5.8bn
RESIDENTIAL CHILDREN’S  
MARKET ACROSS UK WORTH 
£1.64bn
£1.15bn	
Independent sector
£492m	
Public sector
EDUCATION AND TRAINING IN  
SPECIAL SCHOOLS AND COLLEGES 
£4.29bn
£1.2bn	
Independent sector
£3.09m	
Public sector
ADULTS SPECIALIST CARE MARKET
£12.5bn
MARKET GROWTH RATE
1.2%–2.6% p.a.
RESIDENTIAL MARKET GROWTH RATE
6.9% p.a.
EDUCATION MARKET GROWTH RATE
6.3% p.a.
28
29
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

#5 
ACCESS TO SKILLED CARE WORKERS
The social care sector has high levels of 
turnover and vacancies. Following the 
introduction of the national 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 perception of low pay and lack 
of training or promotional prospects. 
What this means for CareTech
The market segments served by CareTech 
are 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 the 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 the people in our care, rewarding 
for our staff and strongly supported by those 
who commission and support our services. 
INDUSTRY AVERAGE RETENTION RATE 
<70%
Our ‘outcome’ focused approach for our 
service users has a wider impact on society 
including more individuals helped into work, 
fewer individuals returning to care facilities, 
a reduction in the proportion of the adult 
prison population having been in care, and 
children leaving care achieving educational 
attainment levels. 
CareTech is well positioned in the market. 
We are aligned to local authorities’ 
purchasing principles 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 well-known care Group 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 Group’s operational management 
structure – from the Home Manager, 
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 continue 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 the Sixth Care Awards ceremony. These 
initiatives promote staff continuity and lead 
to improved standards of care quality.
Our Market continued
#3 
FRAGMENTED MARKET  
OF CARE PROVIDERS
#4 
STRINGENT 
REGULATION OVER 
QUALITY OF CARE
TEN LARGEST ADULTS SERVICE  
PROVIDERS HAVE ONLY
13.5%
TOP FOUR INDEPENDENT CHILDREN'S 
SERVICES PROVIDERS HAVE
23%
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 
steadily 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 largest 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 regulations. 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. 
A high level of regulation is required to assure 
the quality and safety of services.
MARKET SHARE
OF RESIDENTIAL MARKET SHARE
*	 Data from Laing and Buisson Adult Specialist Care 4th edition 2020 report
**	 Data from Laing and Buisson Children’s Services Market Report 5th edition 2020 report
ONE OF OUR DIFFERENTIATING FACTORS 
IS THE CONCEPT OF THE CARE PATHWAY 
TO REFLECT OUR OPTIMISM THAT USERS 
OF OUR SERVICES CAN MAKE PROGRESS 
WITH THEIR LIVES.
30
31
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

OUR VALUES
DELIVERING
Positive
Person-centred
Friendly
Empowering
Innovative
Quality care for  
people we support
A better place to work 
for our employees
Returns for our 
shareholders
Our Strategy and KPIs
WE ARE FOCUSED ON BEING A LEADING 
INTERNATIONAL, INTEGRATED PROVIDER 
OF SPECIALIST SOCIAL CARE SERVICES  
FOR CHILDREN AND ADULTS, DELIVERING 
HIGH-QUALITY AND CARE EXCELLENCE.
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 Group’s focus is the 
provision of high acuity specialist social care through  
our four divisions – Adults Services, Children’s Services, 
Foster Care and Digital Technology.
WE HAVE DEFINED THREE PILLARS  
TO EXECUTING OUR STRATEGY
Build the industry’s 
best leadership  
and workforce
Have the highest 
quality ratings
Innovate in 
social care
	 Find out more on pages 34 to 42
32
33
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

This is one of many schemes within the 
Group’s holistic approach to reward  
and recognition.
We will continue to embed the Thank 
You scheme next year and create unique 
storyboards to share with our employees, 
increasing the focus on recognition at a local 
level in addition to supporting regional and 
national recognition incentives that we run.
Off-site visits
Because of COVID-19 restrictions, some 
site visits were limited during periods of the 
year. In some instances, we were able to 
organise virtual visits and meetings, however, 
priority was given to the health & safety of 
our employees and their preferences on 
maintaining safe social distancing measures  
so they could continue to safely provide 
support for those in our care.
STRATEGIC REPORT
CEO Lunch
Employee  
of the Month
National 
Award
Appreciation 
Award
Long Service 
Award
Blooming 
Marvellous
Special 
Recognition
Local 
Recognition
Regional 
Award
R
e
c
o
g
n
it
i
o
n
I
n
c
e
n
ti
v
is
e
R
e
t
a
i
n
M
o
t
iv
a
ti
o
n
a
l
Strategy in Action
Objective
We employ over 11,000 qualified and skilled 
front-line staff including care workers, 
teachers and managers. They are supported 
by a professional team of clinical and 
therapeutic staff, back-office and support 
services. The care, commitment, passion, 
empathy and professionalism of our staff are 
critical to the success of our Group and the 
care we provide. 
CareTech looks to promote attractive working 
conditions and staff training. A large part 
of our recruitment process is focused on 
matching the needs of the Group’s service 
users and patients to the skills values and 
behaviour of our staff, which necessitates a 
person-centred approach. We drive a culture 
of continuous learning and development to 
ensure that staff have the most up-to-date 
best practice knowledge, competencies and 
attitudes for the services we provide.
Progress this year
Informal engagement
CEO lunches, prior to the COVID-19 
restrictions, were held from time to time  
with a number of employees. These were held 
with a cross section of employees, (diverse by 
gender, nationality, function, profession and 
level) from various regions. 
In 2021, we launched our ‘Thank You’ scheme 
across the Group as part of our reward 
and recognition strategy. The scheme has 
achieved success in driving cultural change to 
focus on recognising everyone’s contribution, 
and more specifically on peer to peer and 
management recognition. The scheme allows 
everyone the opportunity to be recognised. 
Since its launch in April we have issued  
circa 2,500 Thank You cards for on the  
spot recognition awards across the Group.
We drive a culture of 
continuous learning 
and development 
to ensure that staff 
have the most 
up-to-date best 
practice knowledge, 
competencies and 
attitudes for the 
services we provide. 
34
35
CareTech Holdings PLC  /  Annual Report and Accounts 2021

Employee wellbeing
In 2021, we refreshed and re-launched an 
invigorated programme to focus on physical 
and emotional wellbeing. The programme 
delivers a holistic approach and provides 
a range of tools and resources for our 
employees and their families. We held financial 
workshops to support with key life milestones 
such as buying a home, starting a family, 
planning a career and retirement. 
One of our main aims was to remove the 
stigma around mental health, and we 
engaged our employees with a range of 
senior management webinars, drop-in  
clinics and external referral services. 
Employee exit feedback
In 2021, we centralised and embedded a 
simplified process to gather feedback from 
employees leaving the Group. This channel  
of communication allows exiting employees to 
provide a candid summary of their employment 
experience with the CareTech Group, and in 
turn, affords us the opportunity for continuous 
Group and localised improvement.
CareTech Awards
In November 2021, we were able to host the 
seventh CareTech Care Awards to celebrate 
and thank our staff for their effort and 
commitment. 
Staff ownership
To further engage with employees across 
the Group and share in its success, CareTech 
provide all employees with an option to join 
the Company Sharesave option scheme. This 
is a tax-efficient, cash-saving scheme that lets 
employees save towards buying shares in the 
Company. At the end of the savings period, 
individuals have the option to buy shares or 
take out their savings in cash. 
In addition, the Company offer a broad 
share incentive plan to include over 600 
individuals from across the business including 
home managers, support staff and executive 
management.
Nicola Wassall joined CareTech as a support 
worker in 2006 and had no prior knowledge 
of the care sector. She has risen through 
the business to become a Locality Manager 
and benefitted from Company training 
schemes, namely Lead to Succeed and Well 
Led, and completed Continuing Professional 
Development. 
She says: "The Well Led course was probably 
one of the most effective trainings I’ve ever 
done. I found it really valuable and it made  
me reflect on how I did my job. 
One of the reasons I was keen to do the 
Management Development Programme is 
because I know how it can inspire people  
to do better and change the way they do  
their job. The fact that it’s being rolled  
out to all staff members, not just staff in  
our care settings, is very, very good and  
really progressive. 
There are people from all different roles 
and departments within the Company and 
I have found that conversations with them 
are extremely helpful. You hear different 
viewpoints. Sometimes you can get into a 
box with your own views, so to hear a new 
perspective is great."
"I want each of my nine services to be at  
Good or above and importantly, I want them 
all to have happy and settled staff teams."
Priorities for 2021/22
 Design and implement the Employee 
Service Centre, whose focus is on 
staff experience of all HR transactional 
matters. This will drive staff touch  
point experiences.
 Develop our 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 our baseline 
and roadmap.
 Work with senior leaders to drive a 
coaching and mentoring programme  
to support all leaders within the business.
 Run focus groups to establish the 
reality of working for the Group, from a 
minority perspective (Gender, Disability, 
Ethnicity and LGBT).
 Embed the core Group values across  
the whole organisation, and design  
and develop the accompanying 
behavioural framework.
 Commence work on building a role 
defined career ladder to simplify 
structured career planning.
 Continue to embed the Staff 
Consultative Committee.
STAFF RETENTION RATE
71%
(2020: 75%)
The Well Led course was probably one 
of the most effective trainings I’ve ever 
done. I found it really valuable and it 
made me reflect on how I did my job.
Employee engagement survey
Employee engagement levels are recognised 
as central to how we operate and are 
regularly discussed and considered across all 
levels of management. Including quality of 
leadership across CareTech employees, and 
being informed on a broad range of subjects 
including collaboration, working conditions, 
roles and responsibilities, people development, 
reputation, benefits and rewards, diversity 
and inclusion, operational excellence and 
responsible business. 
The 2021 Employee Engagement Survey  
was focused on seven key themes:
COVID-19 – It was important to understand 
how supported and informed the workforce 
felt throughout the unprecedented situation. 
Feedback on initiatives such as a staff financial 
support fund and a new employee wellbeing 
scheme was crucial to informing and adapting 
the Company’s continued response. 
Trust – A temperature check on the clarity 
and transparency of communication  
across the Group. Ensuring our workforce is 
informed, and we are giving them information 
on things that matter to them. 
Teamwork – Relationships and trust are 
integral to an engaged workforce. We  
needed to know how we really do.
Empowering – We needed to know how 
challenged and motivated our workforce feels.
Corporate pride – It’s important to us for our 
workforce to have a sense of self-esteem, and 
feel part of our wider Group.
Career progression – We want to retain and 
develop our workforce and understand the 
reality of feelings around the opportunities 
available. 
Responsible business – We take this 
seriously, and engage with our workforce 
to support promotion of the CareTech 
Foundation in the community, both within 
and outside of the Group.
The Board considers the annual Employee 
Engagement survey to be one of its principal 
tools for measuring employee engagement, 
motivation, attachment and commitment to 
CareTech. It provides insights into employee 
views and although it has a moderate 
response rate, the returns are representative 
of a diverse range of employees. In 2020 
the response rate was low at 30%, however, 
the average employee engagement score 
was maintained at 70 points out of 100, 60 
being representative of ‘engaged’, despite the 
challenging year. 
The Board also considers this engagement 
to understand, for example, how CareTech is 
using the survey outcomes in strengthening 
Company culture and values.
We are currently awaiting the results of the 
2021 Employee Engagement survey, and next 
year we will focus on communicating these 
results to staff, and selecting key priorities 
from the themes to include in our people 
strategy for next year. 
Staff Consultative Committee
Chaired by an Executive Director, the Staff 
Consultative Committee is made up of a 
panel of 40 members of a cross section of 
diverse employees. The employees represent 
specific geographical regions across the 
Group, and act as a conduit between the 
staff and the Board on shared employment 
and service issues that matter to employees. 
Meeting at least three times a year, key issues 
will be fed back to the Board regarding staff 
welfare, employment matters and employee 
engagement. The staff voice will be taken into 
consideration when key decisions are made 
that are likely to impact their interests.
Strategy in Action continued
BUILD THE INDUSTRY’S BEST  
LEADERSHIP AND WORKFORCE CONTINUED
36
37
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

Progress this year
	
– Strengthened our internal Compliance  
and Regulation team.
	
– Consolidated our independent visiting 
programme under a single provider with 
themed monthly visits.
	
– Developed and maintained a suite of 
COVID-19 related policies to provide clear 
guidance throughout the pandemic.
	
– Introduced the app Mind of My Own (Voice 
of the Child) across every Children’s service.
	
– Trained staff across our Children’s specialist 
mental health services in our chosen 
outcome framework (‘CANS’) and began 
the implementation.
	
– Reviewed key policies as part of our 
corporate policy review cycle.
	
– Implemented our new safer recruitment 
policy.
	
– Began integration of supervision process 
into our Myrus system.
	
– Ensured quality framework operating across 
our CQC and Children’s residential services.
	
– Launched DyLOS (‘Dynamic Line of Sight’). 
Operational across 75% of our portfolio 
with remaining sites going live before the 
end of 2021.
	
– Refreshed Quality Improvement Plans 
(‘QIP’) format being implemented across  
all Children’s Services sites.
	
– Launched independently chaired 
Responsible Individual Forum, which met 
three times in 2021, and RI competency 
framework.
	
– Implemented new MIS (Behaviour Watch) 
across all CareTech schools, with phase 1 
focusing upon incident management and 
safeguarding.
	
– Implemented MIS (Charms) across our 
Fostering business.
	
– Developed CareTech KPI, which is ready  
to roll out across our Adults portfolio.
	
– Launched new clinical governance 
committee.
Priorities for 2021/22
We have established five quality and 
compliance themes to guide our priorities 
over the coming year:
	
– Review and re-set our quality strategy  
and Group quality objectives.
	
– Implement a Group-wide Clinical 
Governance Framework.
	
– Review and develop our approach to 
corporate risk and Board assurance.
	
– Become an open, just and learning 
organisation.
	
– Improve our incident and safeguarding 
management.
A series of projects will operate beneath each 
of these five priorities over the coming year, 
with progress being monitored by the Care 
Governance Committee.
KPIs
	
– CQC ‘Good/Outstanding’ rating
	
– Ofsted ‘Good/Outstanding’ rating
	
– Occupancy levels
STRATEGIC REPORT
Strategy in Action continued
Quality is not simply compliance with the 
requirements of regulation. Our approach 
is to embed quality throughout the Group’s 
operations and employ 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 induction, training and 
development programmes. 
	
– Regular reporting from site managers 
through to locality/regional managers, 
operational directors and divisional senior 
management as well as the Group’s 
Executive Director of Quality Improvement.
	
– ‘Dynamic Line of Sight’ monitoring which 
provides a site-based, up-to-date view 
of performance across a range of key 
performance indicators. This information 
acts as an early warning system to help 
prioritise support for services. Progress 
against these KPIs is monitored by 
senior management to drive continuous 
improvement.
	
– Experienced internal Quality Improvement 
and Compliance & Regulation teams who 
operate across all divisions, reporting to 
senior management. The teams undertake 
a programme of improvement projects, as 
well as regular inspection and assessment 
of facilities and services against internal 
quality assurance frameworks, and 
additionally carry out thematic reviews.
	
– Monthly independent visiting to our 
Children’s residential portfolio, in line with 
the regulations, providing reports on the 
quality of care, and recommendations on 
how we can improve service delivery.
	
– Safeguarding Boards operating across our 
portfolios to ensure we are operating in  
line with nationally recognised standards.
	
– A Care Quality and Governance 
Committee, chaired by Non-Executive 
Director Professor Moira Livingston. The 
Committee has oversight of all issues and 
reports relating to the wellbeing of people 
in our care, and commissions enquiries into 
matters of concern. It also 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, quality and 
compliance data.
Deliver high-quality 
care, with reliable 
outcomes at a  
fair price.
Objective
The 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 
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 are robust. This is reinforced 
by our presence at major industry events 
where we have been reliable sponsors and 
commentators. 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.
38
39
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

Providing opportunities to build 
connections and participate in care 
services, through assistive technology 
The Smartbox team has been working closely 
with 13 service users at Selwyn Care as part 
of the 100 Voices project. The site has been 
supported by assistive technology specialists 
and speech-language therapists from 
Smartbox, with training and clinical support. 
This has included goal setting to provide 
a personalised experience and help the 
individuals experience success with their  
new communication devices. 
Throughout the 100 Voices project, staff have 
been sharing their excitement as they observe 
sustained attention levels with the adults 
they are supporting as they interact with their 
devices. This reinforces how communication 
is about so much more than speech. It’s also 
about building interactions and connection 
between service users and those supporting 
them, which happens as attention levels 
increase and leads to the richer emotional 
engagement that may not have been there 
‘pre-device’. 
As well as reports that the devices are making 
communication easier, staff feel that they 
are much more aware of the service users’ 
wants and needs. They have also been sharing 
poignant moments where individuals have 
extended the content of what they would 
usually say and broadened who they would 
say it to, enabling them to independently  
order a drink in a café, for example. 
Scott is an autistic resident at the Selwyn site, 
who has typically communicated using sign 
language. He is increasingly using Grid AAC 
software to express himself and make choices. 
When people do not understand what he is 
trying to sign he can take his device and show 
them what he means, enabling more people 
to understand him. Staff have been shown 
how to model language to Scott and support 
him with how to navigate his device. This has 
enabled him to explore new vocabulary and 
show people the things he has seen that day. 
“It’s been exciting to be able to demonstrate 
the key strategy of ‘modelling’ vocabulary 
when using AAC and the power it has to 
support communication and language 
development in the adult. It also shines 
through in the confidence of the staff around 
the individual. Learning together makes this 
new AAC journey so much more achievable!” 
says Becky Martin, Speech-Language 
Therapist and Clinical AAC Specialist  
at Smartbox. 
KPIs
	
– Unit sales/growth
	
– Outcomes framework – improving the 
lives of those we care for using digital 
technology
STRATEGIC REPORT
Strategy in Action continued
Students have taken to the technology from 
Smartbox so well that Hill House is taking 
a whole school approach to AAC, which 
will increase participation and opportunities 
for communication for all students. New 
students are now having communication 
needs assessed on entry to the school, so 
appropriate technology can be provided to 
meet their needs. Harry is a 16-year-old pupil 
who has had the opportunity to use AAC 
for the first time since recently joining the 
school. Harry is autistic and can communicate 
verbally so to many he may not seem an 
obvious candidate for AAC. However, much 
of his communication is limited to answering 
questions or talking about preferred topics, 
such as trains and Thomas the Tank Engine. 
Smartbox’s Grid software will enable Harry 
to explore new language and talk about 
a wider range of topics, using a mix of 
symbolised communication, prediction 
features and a qwerty keyboard. These are just 
some of the features of the comprehensive 
communication software package.  
The support of symbolised text will help 
Harry’s understanding of language and 
enable him to start recognising more words. 
This development in communication will be 
supported throughout the school, as he is 
surrounded by students who also use  
symbols to aid their communication.
“Using Grid AAC software, Harry will be able 
to expand the topics he talks about beyond 
his special areas of interest. He will be able to 
go to his device and express himself and his 
emotions with new vocabulary, increasing 
his spontaneous communication functions,” 
says Kirsty Marsden, Highly Specialist Speech-
Language Therapist. 
Collaborative effort 
to bring care and 
assistive technology 
together.
CareTech embarked on a roadmap to develop 
a sector first Digital Pathway of services for 
people with disabilities and complex needs.  
As a first project, and following Smartbox 
joining the Group this year, our care teams 
have been working with Smartbox on the 100 
Voices pilot, a collaborative effort to bring care 
and assistive technology together to benefit 
100 people across our services. Nine months 
into the pilot, the project team is already 
seeing the impact for our service users who 
are now being supported to communicate 
using technology and access a world of 
opportunity to engage more in society.
Collaboration between Smartbox 
and Cambian schools sees students 
succeeding with Augmentative and 
Alternative communication (‘AAC’)
Assistive technology specialists from Smartbox 
have been supporting Speech and Language 
Therapist Kirsty at Hill House School to 
implement AAC with a range of students, 
many of which are participants in the 100 
Voices project.
40
41
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

Our Key Performance Indicators
KPIs HELP US TO MEASURE THE GROUP’S PERFORMANCE  
AGAINST OUR STRATEGY AND OBJECTIVES
REVENUE 
£489.1m
(2020: £430.0m)
UNDERLYING EBITDA 
£100.5m
(2020: £90.9m)
UNDERLYING PROFIT AFTER TAX  
AND NON-CONTROLLING INTEREST
£53.0m
(2020: £46.4m)
How this is calculated
Revenue measures how we have filled our 
capacity and the fees we have charged, 
together with the impact of acquisitions.
Performance this year
Revenue has increased by 13.8% year on 
year to £489.1m, due to the acquisition 
of Smartbox in October 2020, the assets 
transferred from The Huntercombe 
Group and organic growth achieved  
in the core business.
How this is calculated
Underlying EBITDA is operating profit 
stated before Interest, Tax, Depreciation, 
Amortisation, ExSOP share-based payments 
charge and non-underlying items that 
are described in note 6 to the Financial 
Statements.
Performance this year
Underlying EBITDA has improved by 
£9.6m, a 10.5% year on year increase. 
This reflects the acquisition of Smartbox, 
assets transferred from The Huntercombe 
Group, improvements to divisional margins 
and organic growth achieved by the core 
business.
How this is calculated
Underlying profit after tax and non-
controlling interest is the Group’s profit 
after provision for taxation excluding non-
underlying items such as amortisation of 
intangible assets, which are fully described  
in note 6 to the Financial Statements. 
Performance this year
The profit after tax is 14.3% more than  
2020, representing an improved return  
to shareholders.
FINANCIAL
UNDERLYING BASIC EPS
47.87p
(2020: 42.26p)
How this is calculated
Underlying 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 year
The underlying basic earnings per share  
has increased by 13.3% in the year.
OPERATING CASH CONVERSION
96.1%
(2020: 103.9%)
NET DEBT 
£258.7m
(2020: £268.9m)
How this is calculated
Cash flow from operations before non-
underlying items and tax (and excluding 
capex) divided by underlying EBITDA.
Performance this year
Operating cash conversion was strong at 
96.1% underlying EBITDA to cash conversion.
How this is calculated
Net debt comprises cash and cash equivalents 
net of bank loans and borrowings and HP 
leases previously accounted for under IAS 17 
excluding Project Teak sale and leaseback. 
Net debt remains unchanged following the 
adoption of IFRS 16.
Performance this year
The Group continues to have a strong 
financial position.
Purple is changing the disability 
conversation
Our flagship programme supporting 
businesses to improve the disabled customer 
experience, Purple Tuesday, had a social  
reach of over 11 million and trended at  
#4 worldwide on Twitter on our November 
celebratory day. Our ITV advert was seen by 
over 1.5 million people. Over 4,500 businesses 
took part making over 6,000 commitments 
to improve accessibility. From mental health 
awareness training to improving accessibility 
of websites, the movement for seeing real 
change has traction. We are pleased the 
impact has been across all sectors and  
with organisations of all sizes.
To support businesses, during FY21 we have 
introduced Purple 365, a subscription service, 
providing training and development through 
monthly webinars (available live and on 
demand) and supported resources.
Purple has been successful in framework 
contracts for Direct Payment services for 
disabled people in Nottinghamshire and Luton. 
This complements existing contracts in both 
the social care and health sectors. Throughout 
the COVID pandemic we continued to provide 
a full service and automated what we do to 
increase both efficiency and quality to over 
4,500 disabled people receiving care from 
over 6,500 personal assistants.
Purple has transformed the way we work with 
a blend of digital services supported by direct 
contact with staff experts in their field.
Strategy in Action continued
DIGITAL ADOPTION WITHIN SOCIAL CARE CONTINUED
Priorities for 2021/22
	 Expand in all our services in the UK  
and abroad.
	 Continue building a brand as the go-to 
disability organisation for both disabled 
people and organisations.
	 Accelerate awareness and understanding 
of Purple’s offering.
Over the next 12 months we are looking to 
expand in all our service areas in the UK and 
abroad. We are building a brand as the go-to 
disability organisation for both disabled people 
and organisations. Regular appearances in 
both national broadcast and print media are 
accelerating awareness and understanding 
about what we do.
43
Strategic Report
42
CareTech Holdings PLC  /  Annual Report and Accounts 2021

REGULATORY RATING (%) – FACILITIES  
RATED ‘GOOD’ OR ‘OUTSTANDING’
CQC86% 
(2020: 91%)
Ofsted80% 
(2020: 82%)
ANNUALISED RETENTION RATE
71% 
(2020: 75%)
How this is calculated
The 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 from 
‘Outstanding’, ‘Good’, ‘Requires Improvement’ to ‘Inadequate’  
(or equivalent).
Performance this year
Whilst both CQC and Ofsted regulatory ratings compare favourably 
to the industry average, we remain committed to providing 
the highest quality of care across all our services and have 
comprehensive improvement plans in place.
How this is calculated
The number of employees working for the year to 30 September 2021 
as a percentage of the number of employees at 1 October 2020.
Performance this year
Maintaining high levels of staff retention underpins our high-quality 
service ratings. Whilst our retention rate compares favourably to the 
industry average, as the effects of the pandemic have eased, there  
has been a reduction in applications and a higher rate of attrition 
leading to recruitment challenges.
QUALITY
EMPLOYEE RETENTION
Our Key Performance Indicators continued
ADULTS SERVICES
2,104places
(2020: 1,997 places)
MATURE ESTATE OCCUPANCY
80%
(2020: 83%)
CHILDREN’S SERVICES
2,000places
(2020: 1,959 places)
FOSTERING
875places
(2020: 1,028 places)
How this is calculated
The Group’s 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 can currently look after.
How this is calculated
The Mature Estate Occupancy is the total number of Adult and 
Children’s Services users placed in services that were open  
throughout the year.
Performance this year
The mature estate occupancy has remained broadly unchanged with 
the slight decrease due to 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.
BLENDED OCCUPANCY
78%
(2020: 80%)
How this is calculated
Blended occupancy is the total number of Adults and Children’s 
Services users actually placed as a percentage of the Group’s total 
capacity and so reflects facilities undergoing development and 
reconfiguration.
Performance this year
The 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.
Performance this year
Adults Services increased to 2,104 primarily due to the beds transferred 
from the Huntercombe Group which complement our Specialist 
Services division and broaden our Care Pathway. 
Children’s Services capacity increased to 2,000 primarily due to a 
number of new developments opening. Fostering decreased to 875 
due to a reduction in the number of foster parents and blocked beds.
OPERATIONAL
CAPACITY
45
Strategic Report
45
44
CareTech Holdings PLC  /  Annual Report and Accounts 2021

We create value for our stakeholders
Our people
Our staff are the bedrock of the organisation 
and deliver great quality care for the people 
we support. We have 11,000 employees and 
have delivered 240,000 e-learning courses, 
over 45,000 face-to-face interventions, 
and 3,000 virtual classroom sessions. We 
have supported just under 1,200 learners on 
apprenticeship programmes across the Group.
Our commissioners
The value CareTech creates for our 
commissioners is reflected in service user 
reviews and collectively at a service level 
review. The sharing of regulatory reports and 
those conducted by independent visitors allow 
the quality assurance of our provision to be 
shared. We have relationships with >300 local 
authorities and care commissioning groups.
Our communities
Over 5,500 organisations participated  
this year in Purple Tuesday making over 
7,000 commitments to make changes in 
practice from more accessible websites, 
improved signage, formalised quiet hours  
for people with learning disabilities, to 
frontline staff learning hello, goodbye and 
other phrases in British Sign Language.  
With media opportunities giving 17.4 million 
people across Britain access to the initiative 
and top trending on Twitter worldwide, Purple 
Tuesday has become the go-to brand for the 
disabled customer experience.
The CareTech Foundation is the first corporate 
foundation in the UK social care sector, 
demonstrating the Group’s commitment to 
wider society and to our staff, and our desire 
to play a strong leadership role within the 
social care sector. The Foundation’s mission 
is to support and champion the social care 
sector, care workers and those living in care. 
Our investors
Since IPO, Revenues, underlying EBITDA 
and EPS have grown by a CAGR of 21%, 
26%, and 17% respectively. CareTech’s 
market capitalisation has gone from £60m 
at IPO through to c.£700m. CareTech has 
a progressive dividend policy and paid out 
12.75p for 2021.
Engagement with our stakeholders
The six key stakeholders identified by the 
Board are at the heart of what we do, being: 
people in our care; our customers; our 
shareholders; our Regulators; people; and our 
suppliers. It is of the highest importance to us 
that we engage with all of our stakeholders 
meaningfully, to inform decision-making and 
ensure we provide value in all areas of our 
business. It is challenging to ensure all of our 
stakeholders have the same experience with 
the Group, due to our wide range of locations, 
operations and roles; therefore, we promote an 
ongoing dialogue with all our stakeholders to 
enable us to effectively act on feedback, and 
we foster a culture of honesty and integrity.
Our approach to looking  
after people in our care
We believe the wellbeing of those entrusted 
in our care is our single most important 
corporate responsibility. 
We have continued to strive for long-lasting 
improvements in our services in a way that 
is consistent with the interests and priorities 
of our stakeholder community. As always, 
the driving force underpinning the Group’s 
operations is the delivery of the highest quality 
of care to those in our care.
As the Group grows, we strive to maintain 
a culture that never forgets the important 
relationship we have with the people 
we support. We seek to nurture these 
relationships and see them as partnerships of 
mutual interest and respect, with our person-
centred approach ensuring people’s interests 
are safeguarded and vulnerabilities minimised. 
STRATEGIC REPORT
Engaging with our Stakeholders
We provide a Care Pathway to meet the 
needs of the people in our care, and our 
professional care and education teams 
strive to make each day an extraordinary 
day. Across the Group, we look after 
close to 5,000 people.
46
47
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

How we engaged during the year
	
– CareTech’s services are present on a 
multitude of purchasing frameworks 
across England, Scotland and Wales. 
These procurement tools allow providers, 
through a combination of quality and fees, 
to become a recognised provider aligned 
to their provision type. This provides a 
purchasing mechanism to allow the Group 
to access placement referrals for people 
whose needs could be met by our services.
	
– The referral and placement of people takes 
place daily across the Group. This process 
involves many people from commissioners 
and Group staff, with a single focus on 
understanding and being able to articulate 
how the needs of a person can be met.
	
– Operational colleagues have had regular 
contact with commissioners regarding each 
placement. Alongside this, there are formal 
reviews to understand the progress of each 
person placed and determine any changes 
to an individual’s care plan.
	
– With the challenges of the pandemic, face-
to-face meetings were replaced with video 
calls with providers and commissioners 
settling into new and effective ways of 
communicating.
Outcomes
	
– Business development teams have 
had strategic discussions regarding the 
sufficiency requirements of commissioners 
and this feedback allowed the planning of 
future services.
	
– Senior operational staff, alongside the 
business development teams, supported 
‘whole’ Authority Business Reviews that 
allow detailed discussion on performance 
to take place.
Our approach to shareholder 
engagement
The Board appreciates that effective 
communication with the Group’s shareholders 
and the investment community as a whole is 
a key objective. The views of both institutional 
and private shareholders are important, and 
these can be varied and wide-ranging, as is 
their interest in the Group’s strategy, reputation 
and performance.
The Group Executive Chairman has overall 
responsibility for ensuring this communication 
is effectively conveyed and for making the 
Board fully aware of key shareholders’ views, 
comments and opinions. Contact with 
investors throughout the year is a priority and 
the Board strives to look after their interests. 
General presentations to major shareholders 
following the publication of the Group’s 
annual and interim results are conducted by 
the Group Executive Chairman and the Group 
Chief Financial Officer as are regular meetings 
through the year with fund managers and 
investment analysts.
Robust year-on-year dividend growth is an 
objective and all shareholders are encouraged 
to attend CareTech’s Annual General Meeting, 
which all Board members attend, as this 
provides an opportunity to address questions 
to the Directors.
The Group’s annual and interim reports are 
available to all shareholders and all results, 
Group announcements and related investor 
information can be accessed via the corporate 
website, www.caretech-uk.com. The website 
is under constant review in an effort to 
maximise the effectiveness of information 
made available to shareholders.
The Board embraces open dialogue with 
shareholders and works with its stockbrokers, 
Numis and Panmure Gordon to ensure that  
an appropriate level of communication  
is facilitated through a series of investor  
relations’ activities. 
Our approach to engaging with 
commissioners 
The commissioners in local authorities and 
health bodies across England, Scotland and 
Wales are key stakeholders for CareTech. The 
people in our care are typically referred by a 
social worker or case manager and access 
to our services is purchased through the 
authority’s respective commissioning teams. 
The funding of placements is not always met 
by social care; health commissioners support 
the payment of any ‘health’ component of 
a care package. Effective engagement and 
communication with these stakeholders is  
a priority for the Group. 
All staff at CareTech interface in some 
way either directly or indirectly with local 
authorities and other commissioners.  
The Group’s business development teams 
have overall responsibility to ensure that 
engagement and communication are 
effective, and, together with operational 
colleagues, ensure that the Board is fully 
aware of commissioning trends. Contact  
with local authorities is at least daily across the 
Group. This ranges from the daily partnership 
working with social work teams to ensure 
that the needs of people in our care are 
being met, to formal placement and business 
reviews. These reviews involve our core staff, 
senior operational colleagues and Directors, 
depending on the meetings’ requirements.
The demonstration of value for the services 
that the Group provides is objective, and this is 
demonstrated individually through placement 
reviews and collectively at a service level 
review. The sharing of regulatory reports and 
those conducted by independent visitors allow 
the ongoing quality assurance of our services 
to be shared.
The Group’s websites detail the specifics 
of our service offerings. This is under 
constant review in an effort to maximise the 
effectiveness of information made available  
to all stakeholders. 
The further expansion of our Care Pathway 
seeks to provide ‘whole of life’ of solutions 
to the needs of the people we support, 
maximising independence where possible by 
encouraging education, promoting choice, 
being proactive with family members, 
providing training for employment where 
feasible and nurturing personal ambition 
where helpful. In the past year we have 
celebrated the achievements of those we 
support across the country, including holding 
our annual Art competition and Blooming 
Marvellous gardening competitions. 
We are determined to preserve the dignity 
of those we care for and fully support 
government initiatives to this end. We see 
making each day an extraordinary day for 
those in our care a vital ingredient to their, 
and our, success.
From the first time we meet each person 
we start to gain an understanding of not 
only their needs which are often complex 
and challenging, but most importantly to 
understand their future aspirations so that a 
plan to support them in our care is individual 
and as best informed as possible. Where 
present, parents (carers/guardians), social 
workers and other professionals play a key 
role in supporting the development of their 
individual care plan.
A person’s care plan is dynamic, informed 
and updated by ‘their voice’ together with 
the professionals supporting them in their 
placement, alongside their social worker 
(and other external professionals) as well as 
advocacy services and independent reviewing 
professionals who visit services regularly. 
This multi-disciplinary approach ensures that 
the care plan is as rich and well informed 
as possible. Where communication is a 
challenge for a person, the use of appropriate 
communication techniques are important, 
from computer assistive devices, such as those 
provided by our Smartbox GRID technology, 
to British Sign Language and Makaton 
to ensure their voice is heard. We have 
implemented Mind of My Own across all our 
Children’s Services to enable us to capture and 
‘listen’ to the voice of the young people in our 
services and respond to their individual needs. 
We spend time to explain how each person’s 
voice can be heard, and what they should do  
if they think that this is not happening. They 
are reminded of this on an ongoing basis.
How we engaged during the year
	
– Each person was formally reviewed against 
clear progress targets being set by the team 
supporting the person.
	
– We utilised surveys, in the form of simple 
questionnaires, to ensure that our provision 
was meeting the needs of those in our 
care. As part of the regulatory inspection 
process, inspectors met with the people 
in our care and asked for their feedback, 
which is included as a key part of the 
inspection report. 
	
– We supported visiting and contact with 
parents appropriately and as agreed as 
part of any care plan. Whilst during the 
pandemic this was restricted, this has  
now been fully restored.
Outcomes
	
– During the pandemic, there was need to 
keep our sites COVID-19 secure and safety 
measures were put in place.
Our priorities in 2022 include continuing  
to ensure that we work towards the  
aspiration of each person by making every  
day an extraordinary day and celebrating  
their successes. 
At 19, despite the many challenges of 
autism, Jake has embarked on a career 
in horticulture – a subject he loves. He 
proved his ability to work independently 
on a work placement at a local community 
garden where his diligent work earned 
him an invitation to a permanent job. He 
now works three days a week helping to 
keep the community parks and gardens 
maintained.
This transition from school to work was a 
challenging one for Jake; his autism means 
that he finds any change to his routine very 
hard to manage. When the opportunity 
of the perfect work placement came up, 
his team at school worked hard to provide 
him with the support and competences he 
needed to succeed – and to help him fulfil 
his ambitions to work in a gardening and 
landscaping role. 
The team’s support helped Jake to build his 
confidence until he felt fully settled in his 
new environment. Working independently 
helped him to learn new life skills as well 
as practical skills, enabling him to develop 
and grow. This carefully managed support 
has allowed him to move on and be 
independent in his new career.
 “Jake is very ready to leave the classroom 
now and have that practical outdoor 
experience which he loves. He likes the 
one-on-one interaction with the park 
ranger and they get on very well so I think 
it is a perfect choice for his career path  
and the best outcome for him. We are  
so delighted to see him thrive in his  
new-found independence.”
Sarah Chatterton, Interim Head  
of Education, Brook View School
Independence for Jake  
as he embarks on a  
career in horticulture
CASE STUDY
Engaging with our Stakeholders continued
48
49
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

How we engaged during the year
	
– Supplier relationships are primarily 
managed by our property and  
procurement team.
	
– Payment practices are monitored  
on a monthly basis.
	
– The Board reviewed and approved the 
Company’s Modern Slavery Act Statement.
	
– Suppliers must demonstrate that they 
operate in accordance with recognised 
standards that uphold human rights and 
safety and prohibit modern slavery.
Outcomes
	
– Liaison with suppliers on an individual  
basis to provide information on the  
Group’s ordering pattern.
	
– Due to the pandemic, reached beyond 
the normal supply chain to source new 
domestic and international suppliers.
How we look after our people 
The CareTech Group recognises the 
increasing importance of engaging with its 
workforce. Employee engagement is critical 
in maintaining strong operational delivery, in 
uncertain times of change. We therefore strive 
to maintain and create further opportunities 
to generate dialogue between management 
and our employees – both directly and 
through varying channels. The Board believes 
effective engagement to be a key element of 
its understanding of the Company’s ability to 
create value as it recognises that our people 
are our greatest asset. Employee views can 
help inform the Board on matters such as 
operational effectiveness, Company culture, 
key areas of development and risk, and 
strategy development and delivery.
How we engaged during the year
	
– Management regularly engages with the 
workforce through a range of formal and 
informal means, including via webcasts 
and emails from the Group Chief Executive 
Officer and other senior executives, team 
meetings, and face-to-face gatherings 
where safe to do so in line with COVID 
restrictions.
	
– We gain feedback from colleagues through 
a full annual survey which is analysed by the 
Board and Executive Committee with action 
plans put in place to respond to findings.
Outcomes
	
– Increased investment in wellbeing support 
for colleagues (see page 23).
	
– Ongoing work to create a culture of 
recognition and praise.
	
– Inaugural Staff Consultative Committee.
The CareTech Group 
recognises the 
increasing importance 
of engaging with its 
workforce. Employee 
engagement is critical 
in maintaining strong 
operational delivery, 
in uncertain times 
of change.
How we engaged during the year
	
– Group Executive Chairman and Group 
Chief Financial Officer reported back to  
the Board after the investor roadshows.
	
– Regular, detailed feedback provided to the 
Board by our stockbrokers, financial public 
relations and investor relations advisers to 
inform the Board about investor views.
	
– Regular meetings between the Group 
Executive Chairman, Group Chief Financial 
Officer and Group Chief Operating Officer 
with institutional investors, sales teams and 
industry/sector analysts.
	
– Released regular updates on the operational 
and financial performance of the Group 
incorporating occupancy levels, quality 
ratings, revenue, profitability by division, net 
debt and appropriate commentary on key 
business trends.
	
– The Group Executive Chairman engaged 
with larger institutional shareholders 
to discuss matters including the Board, 
strategy, remuneration and corporate 
governance.
	
– All communication from individual 
shareholders reviewed by management  
and provided with a response.
	
– Ensured that all shareholders have 
equal access to information by making 
documents presented at investor meetings 
available on the Group’s corporate website: 
www.caretech-uk.com.
	
– As pandemic mitigations have eased, 
we have been able to accommodate 
shareholder visits to our services.
Outcomes
	
– Increased focus on ESG matters and  
our inaugural Purpose Report.
	
– More time allocated to senior and  
next-level operational management.
Our approach to engaging  
with our regulators
CareTech operates in a highly regulated 
environment. The Group invests heavily  
in its internal compliance capacity and has 
established open, transparent, and positive 
relations with care, health and education 
regulators in the national and international 
environments within which we operate.
CareTech sits within the CQC ‘Market 
Oversight’ group and complies fully with 
the financial, business and care regulatory 
requirements that market oversight brings.
Regulatory requirements differ across both 
the sectors that we operate in, but also in 
the devolved administrations of Scotland and 
Wales. The Group’s internal compliance team 
supports the business to understand and 
interpret the external regulatory landscape 
and ensure continued compliance with all 
regulatory requirements. The ratings across 
the Group continue to compare well with 
other providers.
This year has seen the need to engage with 
regulators in a very different way. COVID-19 
has impacted on the regulatory programmes 
of all of the national regulatory bodies. The 
first part of the Group’s operating year saw 
the suspension of the vast majority of site 
inspections and of the awarding of ratings. 
The Group engaged with the amended 
regulatory programmes and introduced 
enhanced risk assessment processes and 
reporting for all services to provide additional 
compliance assurance to regulators.
Alongside engagement with regulators, 
the Group further enhanced strategies 
and policies for effective data protection 
information governance, and in meeting 
health and safety requirements.
How we engaged during the year
	
– National relationship meetings with Ofsted 
and CQC.
	
– On-going dialogue with relationship 
managers through COVID-19.
	
– Introductory meetings for newly appointed 
CareTech senior managers.
	
– Regular dialogue at regional and local level 
on services’ quality and compliance.
	
– Participation in consultations and learning 
events with all regulatory bodies.
	
– Working closely with the regulator and 
NHSE/I on services transferred to our 
Coveberry Group in particular with 
the CQC to improve a service with an 
inherited Inadequate rating and to address 
failings in another service to ensure the 
future operating model meets the Right 
Support, Right Culture, Right Care national 
requirements.
Outcomes
	
– During a period where it was difficult to 
undertake normal inspections, we worked 
with the Regulators to facilitate focused 
inspections and virtual visits to our sites. 
Our approach to supplier engagement
The Board is mindful of the importance of 
ensuring that the Group is able to source a 
broad range of high-quality products from a 
base of well-respected suppliers and of being 
a trusted partner for our suppliers. Sourcing 
personal protective equipment throughout 
the pandemic has never been so important as 
in 2020 as we have depended on it to ensure 
that we have sufficient stocks and other 
suppliers for us to be able to deliver care in  
a safe environment during the pandemic. 
Engaging with our Stakeholders continued
50
51
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

Employee engagement is critical 
in maintaining strong operational 
delivery, in uncertain times of change. 
Throughout this Annual Report, we provide examples of how we:
	
– take into account the likely consequences of long-term decisions;
	
– take into account the interests of the Company’s employees;
	
– foster relationships with our suppliers, customers and others;
	
– have a positive impact by the Company’s operations on the community and environment;
	
– attribute importance to behaving as a responsible business; and
	
– act fairly between members of the Company.
The Board of Directors of CareTech Holdings PLC consider, both individually and together, that they have acted in the way they consider,  
in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole (having regard to  
the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year ended 30 September 2021.
Reporting requirement
Explanation
For more information
The likely consequences of  
any decision in the long term
All decisions are made with long-term consequences in mind and aligned 
to our core purpose. 
 Our business model page 08
We maintain a conservative funding structure and a progressive dividend policy.
 page 47
The interests of employees
Our annual employment survey was completed with positive feedback.
Inaugural Staff Consultative Committee held to ensure that the voices  
of our staff are at the heart of our business.
 page 36
The need to foster business  
relationships with suppliers, 
commissioners and others
The Board has identified the Group’s key stakeholders to be people in our care, 
employees, commissioners, shareholders, suppliers, regulators, lenders and 
communities. Regular communication takes place to listen and encourage  
participation from all our stakeholders. 
 pages 47 to 51
The impact of operations 
on the community and the 
environment
In 2021, we developed our new Responsible Business strategy – CARE4,  
and donated £1.2m to the CareTech Foundation to support the wider social 
care sector.
 Our approach to responsible business page 54
 CareTech Foundation page 61
The desirability of maintaining  
a reputation for high standards 
of business conduct
We remain committed to becoming the highest quality provider of care,  
education and therapeutic support.
We believe good governance is vital, and having clear divisions of  
responsibilities and roles.
 Our approach to responsible business page 54
The need to act fairly between  
members of the Group
The Board embraces open dialogue with all stakeholders and works with  
its brokers to ensure an appropriate level of communication is facilitated. 
 Our shareholder engagement page 81
Statement by the Directors 
in performance of their statutory duties in accordance with s172(1) Companies Act 2006
52
53
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

STRATEGIC REPORT
2021 results
The methodology used to calculate the 
GHG emissions is in accordance with the 
requirements of the following standards:
	
– World Resources Institute (‘WRI’) 
Greenhouse Gas (‘GHG’) Protocol 
(revised version). 
	
– Defra’s Environmental Reporting Guidelines: 
Including Streamlined Energy and Carbon 
Reporting requirements (March 2019).
	
– UK office emissions have been calculated 
using the Defra 2020 and 2021 conversion 
factor repository.
Following an operational control approach  
to defining our organisational boundary,  
our calculated GHG emissions from business 
activities fall within the reporting period 
of October 2020 to September 2021 and 
using reporting period of October 2019 to 
September 2020 for comparison.
Emissions and energy usage
Emissions Source
Emissions tCO2e
Variance
2020
2021
Scope 1
Natural gas(i)
3,179
4,779
50%
Other fuel types(ii)
1,195
1,387
16%
Company and leased cars
3,914
3,433
-12%
Total Scope 1
8,288
9,599
16%
Scope 2
Electricity
3,108
2,751
-11%
Total Scope 2
3,108
2,751
11%
Scope 3
Electricity transmission and distribution 
267
243
-9%
Employee cars(iii)
166
378
128%
Total Scope 3
433
621
43%
Total (Market-based)
9,307
10,265
10%
Total (Location-based)
11,829
12,971
10%
Total Energy Usage (kWh)1
53,011,194
70,852,968
34%
Normaliser
tCO2e per FTE
1.6
1.6
-%
Table 1 – Energy
(i)	 Natural gas During 2021, we have worked towards improving data quality (better data from more sites) that 
has resulted in increases in reported emissions as the standard data under-estimated the position. We do 
not believe there is any material increase in real emissions and are satisfied that 2021 data provides a robust 
baseline from which to calculate our emissions reduction plan.
(ii)	Other fuel types Improved data quality has provided greater accuracy with reference to use of other fuels  
(e.g. heating oil) data for which was unavailable previously.
(iii)	Employee cars The reported year-on-year increase is primarily due to greater data accuracy. Employee 
mileage data is difficult to obtain and the estimation protocol means that emissions are more likely to be 
over-estimated than under-estimated. During 2022, we will work to improve data accuracy to inform our 
decarbonisation plans and will also launch a staff travel programme.
1	
Energy reporting includes kWh from scope 1, scope 2 and scope 3 employee cars only (as required by  
the SECR regulation).
Operating Responsibly
Carbon emissions 
CareTech recognises that our global 
operations have an environmental impact and 
we are committed to monitoring and reducing 
our emissions year-on-year. We are also 
aware of our reporting obligations under The 
Companies (Directors’ Report) and Limited 
Liability Partnerships (Energy and Carbon 
Report) Regulations 2018. As such, this year 
we have continued our energy and carbon 
reporting to meet these new requirements 
and increase the transparency with which 
we communicate about our environmental 
impact to our stakeholders.
2021 performance
This year we have calculated our 
environmental impact across the required 
scope 1, 2 and 3 (selected categories) emission 
sources. Our emissions are presented on both 
a location and market basis. On a location 
basis our emissions are 12,971 tCO2e, which  
is an average impact of 1.6 tCO2e per FTE and 
an increase of 10% from 2020. Our market 
basis emissions are 10,265 tCO2e, which 
is an increase of 10% from 2020. We have 
calculated emission intensity metrics on a 
per FTE basis, which we will monitor to track 
performance in our subsequent environmental 
disclosures.
During 2021, we have worked towards 
improving data quality (better data from more 
sites) that has resulted in increases in reported 
emissions as the standard data under-
estimated the position. We do not believe 
there is any material increase in real emissions 
and are satisfied that 2021 data provides  
a robust baseline from which to calculate  
our emissions reduction plan.
Energy and carbon action
In the period covered by the report the 
Company has undertaken the following 
emissions and energy reduction initiatives:
	
– We commissioned a project to update 
our EPCs; providing us with a benchmark 
Energy Performance per property type and 
understand where we can best focus our 
energy reduction strategies.
	
– As the boilers in our services come to the 
end of their lifespan, we replace them with 
newer more efficient condensing boilers. 
CareTech recognises that our global  
operations have an environmental impact 
and we are committed to monitoring and 
reducing our emissions year-on-year.
	
– Newly installed or upgraded radiators are 
fitted with a thermostatic valve and the 
systems balanced.
	
– We upgrade to LED lightings when 
refurbishing services and when current 
fittings come to the end of their lifespan.
	
– We have domestic kitchens in all our 
services and choose AA-rated energy 
efficient ovens, fridges, freezers when 
replacing or upgrading.
	
– We replaced 60 of our fleet vehicles with 
newer more fuel-efficient models and 
started a programme of ordering electric 
and hybrid vehicles, both these initiatives 
will expand in the 2022 period.
55
Strategic Report
54
CareTech Holdings PLC  /  Annual Report and Accounts 2021

Governance
Our belief in creating value for all of our stakeholders drives  
our commitment to good governance, transparency and  
effective engagement with all involved in our business,  
safeguarding its long-term success.
CARE4
Planet
We know that healthy lives go hand in hand 
with a healthy planet. We are committed  
to caring for the wellbeing of our planet  
to safeguard all our futures.
CARE4
Innovation 
We believe that good business creates value  
for society as well as for those whom we care. 
Our innovative approaches will expand our 
business for a successful future, helping us  
to enable independence for more people, 
positively impacting more lives.
CARE4
Community
Thriving communities are central to our success 
and we aim to be an active contributor in all the 
locations in which we operate. We also support 
the vital role of the wider social care sector 
through the CareTech Foundation.
CARE4
People
Our business exists to facilitate better lives — 
for the people in our care and the people who 
work for us. We aim to be the sector’s best 
workforce and so we offer market-leading 
employment opportunities, creating better 
futures for our employees.
Social Impact
The purpose of our business is to enable children, young people and adults  
with complex needs to make their own life choices, and to develop confidence  
and independence to live, learn, thrive and engage, building better futures.
Operating Responsibly continued
We are proud of the life-changing results that 
we achieve for individuals in our care. Our 
shared purpose to build independence for our 
service users means that a focus on quality 
care and good governance has always been 
central to the way we operate. 
We aim to ensure that our staff are provided 
with opportunities to develop their skills  
and careers, as well as the opportunity  
to participate in Company ownership. 
The pandemic, and rising concerns about 
climate change, resource scarcity and human 
rights have made it clear to us that sustainably 
– operating responsibly – is a business 
imperative. 
Building on our inherent culture of 
responsibility, in 2021, we have made a 
commitment to new strategies to address 
urgent environmental issues, alongside  
further enhancing our people policies that  
are focused on equally important human 
issues such as diversity, equity and inclusion. 
Published alongside this year’s Annual Report 
is our first Purpose Report, which describes 
this exciting new strategic approach and  
how it is central to the way we do business.
CARE4 –  
Responsible business at CareTech 
CARE4 is our new Responsible Business 
strategy. We have developed a framework 
(see facing page) that reflects the material 
issues for our business and sets key 
commitments to measure progress. It is 
rooted in our corporate purpose: building 
independence, to enable better futures. 
“If I can walk again, I can do  
everything else again!” 
When Regan left hospital and moved into 
Clock Tower Mews in August 2016, he hadn’t 
walked since February of that year. By June 
2020, with our expert support, Regan had 
started to stand and walk with staff holding 
him gently and, by the end of the year, he 
was walking unaided. By 2021, Regan was 
happily and freely walking around his home 
on his own.
“Regan is very independent now; if he 
fancies a snack he will walk into the kitchen 
and get one for himself. He’s much more 
able to make his own decisions, which 
has been life changing for him. There are 
particular toys and music he likes and if he 
wants to watch TV he will just pick up the 
remote control to change the channel and 
choose what he wants to watch. He has 
not only gained independence in a physical 
way but has also grown in confidence and is 
trying new things. He never enjoyed drawing 
but he is actually picking up a pencil and 
drawing pictures now. So, it’s not just his 
walking; this has boosted his self-confidence 
completely. Now his attitude is ‘If I can walk 
again, I can do everything else again!”
Regan’s Support Worker, Helen 
Reagan regains  
his independence
CASE STUDY
We will continue to develop this approach 
in 2022 as we seek to build our business on 
truly sustainable foundations. To ensure that 
this vital work maintains momentum, we have 
appointed our first ever Sustainability Director 
who will drive the agenda in parallel with our 
business development agenda. 
We will report our progress using an ESG 
framework alongside our own Purpose Report 
that will focus on the considerable social 
impact of our business – enabling more 
independence on an everyday basis. 
Our strategy focuses on four key areas 
– CARE4 Planet, CARE4 People, CARE4 
Innovation, and CARE4 Communities.
Social impact
Our purpose is to enable children, young 
people and adults with complex needs to 
make their own life choices, and to develop 
confidence and independence to live, learn, 
thrive and engage, building a better future.  
We describe this as providing Extraordinary 
Days, Every Day.
We will quantify, establish goals and report 
on the social impact of delivering our core 
purpose of building independence for  
better futures. 
Our commitment:  
We will establish a robust set 
of Social Impact Indicators and 
reporting methodology so that 
we can measure and report on 
the social impact of delivering 
our core purpose.
OPERATING RESPONSIBLY
56
57
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

CARE4 People –  
a better future for our people
Our business exists to facilitate better lives 
– for the people in our care and the people 
who work for us. We aim to be the sector’s 
best workforce, offering market-leading 
employment opportunities and creating 
brighter futures for our employees. 
Our CareTech Management Development 
Programme embeds our values and 
behaviours into the leadership DNA across 
the Group. We reinforce this through our 
CareTech Senior Coaching and Mentoring 
Programme to ensure that our leadership 
approach is embedded in everything we do.
Training and development
All staff have access to a formal induction 
process. This begins with mandatory 
induction and statutory training during the 
first six months of their employment. Our 
e-appraisal system – ‘Job Chat’ – enables 
staff to identify their career aspirations. We 
also support individuals through a range of 
personal development opportunities, including 
apprenticeships. 
Sharesave Scheme
We believe that our staff should benefit from 
the success and growth of the organisation. 
We are now in our third cycle of our Sharesave 
Scheme, which allows staff to save between 
£5.00 and £500 per month for a period of 
three years. At the end of the three-year 
period, the scheme matures and staff are able 
to redeem their investment and hold or sell 
those shares as they choose.
Reward and recognition 
CareTech launched its Thank You initiative in 
2021. This drives recognition of our staff on a 
daily basis, making staff recognition a key part 
of our DNA. We have distributed over 2,500 
thank you cards to staff across the business, 
accompanied with reward vouchers. 
CARE4 Innovation –  
a better future for business
We believe that good business creates value 
for society as well as for those we care for. 
Our innovative approaches will help expand 
our business and secure a successful future, 
helping us to enable independence for more 
people and positively impact more lives.
Our commitment:  
We will be an employer of 
choice, investing in our people 
and valuing their diversity.
 
We will ensure strong, fair and inclusive 
front-line leadership through our 
CareTech Management Development 
Programme. We will launch our new 
Diversity Equity & Inclusion Strategy, 
driving fairness and equity across all 
that we do. 
Progress to date
Rewarding our people
We recognise the importance of fair terms  
and conditions for our staff. 
Leadership and management
Our CareTech Leadership and Management 
Academy offers personal development for 
front-line staff through to senior operational 
leaders. The Academy provides a variety 
of programmes to develop the leadership 
knowledge, understanding, skills and 
competences of our leaders, focused around 
achieving Good and Outstanding outcomes 
in a social care setting. 
Our commitment:  
We have established our new 
CareTech Technology division 
to spearhead our technology 
and innovation agenda.
 
CareTech aims to become a digital leader 
in the disability and specialist social care 
sectors by developing an end-to-end 
pathway of innovative services that blend 
care and technology. Building on our 
maiden investment in Smartbox, we will 
accelerate the pace of our investment 
and development of innovative digital 
solutions to reach more people around 
the world who can benefit from these 
technologies. We will continue to 
modernise our business approach across 
all areas of the Group, embracing new 
ways of providing high-quality care. 
Progress to date
Augmentative and Alternative 
Communication (‘AAC’)
Smartbox will enable more disabled 
children and adults to have a voice and live 
more independently. This exciting assistive 
technology includes their flagship AAC 
platform. This supports a wide range of 
conditions and literacy levels with features for 
symbol and text communication, accessible 
apps, environment control, internet browsing 
and much more.
Operating Responsibly continued
CARE4 Planet –  
a better future for the planet
We know that healthy lives go hand-in-hand 
with a healthy planet. We are committed to 
caring for the wellbeing of our planet 
to safeguard all our futures. 
Progress to date
Our carbon footprint
To meet our reporting obligations under The 
Companies and Limited Liability Partnerships 
(Energy and Carbon Report) Regulations 2018, 
we publish our carbon footprint annually 
in our Annual Report. CARE4 increases our 
focus on carbon emissions and sets a clear 
reduction target and a commitment to 
developing a carbon reduction plan compliant 
with ‘Task Force on Climate-Related Financial 
Disclosures’ requirements in 2022. 
In 2021, our carbon footprint was 70,853 
tCO2e, an increase of 34% vs 2020. This 
increase is primarily due to improved data and 
transparency in our second year of reporting. 
During 2022, we are committed to further 
improving data collection and developing  
a carbon reduction plan.
Scope 1 accounts for 74% of our emissions 
and this is dominated by our fleet and  
our property energy consumption.  
We are transitioning our fleet to hybrid, 
electric and low-emission vehicles and 
have already removed diesel vehicles as an 
option for Company cars and offered staff 
a Cycle to Work scheme.  
Our Smartbox business is well on the way 
to a fully-electric fleet, delivering both 
significant emission reductions and cost 
savings. We have embarked on a significant 
programme to improve energy efficiency 
at all our properties. Further detail of these 
initiatives will be included in our carbon 
reduction plan during 2022.
We are currently implementing a rolling 
programme of energy efficiency measures. 
These will be increased and improved as we 
focus on the route to our 2050 Zero Carbon 
commitment. The programme includes: 
	
– Replacement of end-of-life boilers with new 
more energy efficient condensing boilers.
	
– Clocks and thermostats fitted to boilers  
in larger services.
	
– Newly installed radiators fitted with 
thermostatic valves.
	
– Light fittings upgraded to LED as they  
are refurbished or replaced.
	
– Replacement appliances are AA rated.
	
– Insulating building roofs, double glazing or 
secondary glazing windows and controlling 
hot water with thermostatic mixer valves.
One Planet Living – A grassroots campaign 
for sustainability 
One Planet Living is a framework for 
sustainability developed by Bioregional  
and we are currently piloting this approach 
in some of our key services, enabling 
management teams, staff and residents 
to develop their own plans to improve 
sustainability at every location. 
Using the One Planet Living ten principles, the 
teams will develop their plans in alignment with 
CARE4 commitments, helping us to meet our 
corporate targets with a grassroots campaign. 
Longer term, this will help us to activate 
improvements across all of our services. 
Our ambition is to implement the campaign 
nationally once the pilots are validated. 
Our commitment:  
We will be a Net Zero  
business by 2050.
 
Aligned to the UK Government’s Net 
Zero by 2050 target, we are on a 
pathway to reduce our Scope 1, 2 and 
3 carbon emissions to a minimum by 
2050. We currently intend to offset any 
residual emissions though accredited 
capture or storage schemes such as 
those certified by Verra. 
During 2022, we will set out a carbon 
reduction plan to reduce energy usage 
wherever possible across our business.
58
59
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

Apprenticeships
In 2020/21 we supported over 665 new 
apprentices, with a total of 1,355 people  
on our apprenticeship scheme nationally. 
The majority of our staff live locally, meaning 
that we offer attractive employment 
opportunities to the community.
Our schools and homes participate in 
local events (eg fetes), using them to build 
community relationships and raise funds  
for special projects. 
Governance and transparency
CARE4 is underpinned by our rigorous 
commitment to governance – an essential 
aspect of this innovative approach. Our belief 
in creating value for all of our stakeholders 
drives our commitment to good governance, 
transparency and effective engagement with 
all involved in our business, safeguarding its 
long-term success. 
Our commitment:  
We will create a Staff 
Consultative Committee to 
ensure that the voices of  
our staff are at the heart  
of our business.
 
This will ensure that our people play an 
integral role in defining the organisation’s 
journey. The Committee will have Board 
sponsorship and a direct reporting line  
to the Board.
During 2022, we will further develop the 
ambition of CARE4 to help us to formalise and 
implement the Responsible Business agenda 
at CareTech, and to deliver on our ambition to 
lead the sector in this critical work to enable a 
better future for all. 
The CareTech Foundation was established in 
2017 to champion and support the social care 
sector, care workers and those living in care 
through our four grant streams. The CareTech 
Charitable Foundation is an independent 
grant-making corporate foundation registered 
with the Charity Commission. Funded and 
founded by CareTech, the Foundation has an 
independent Board of trustees responsible for 
delivering its charitable objectives.
The CareTech Foundation delivers meaningful 
impact to communities in the UK and 
overseas. Its work focuses on the following 
three key objectives:
	
– Physical and learning disabilities and mental 
health. Supporting disabled people and 
those with long-term health difficulties, 
including those with mental health 
conditions and complex physical and 
learning disabilities.
	
– Skills development for the care sector.  
Skills development for those from deprived 
and disadvantaged backgrounds for  
careers in the care sector.
	
– Supporting our communities. Supporting 
the family and friends of CareTech PLC 
employees facing significant financial 
challenges as well as issues facing  
local communities.
In the year to September 2021, the Group 
made charitable donations through the 
Foundation of £1.2m (2020: £0.7m).
In its first three years, the CareTech 
Foundation has already supported over 
1,550,000 people as well as delivering a 
social media campaign on mental health 
reaching 16.8 million people in Pakistan.
Developed by independent impact 
researchers, the Foundation’s Impact Report 
2020 shows that the Foundation is delivering 
a powerful positive difference to individuals’ 
lives. Key achievements include:
	
– 359 young people now have employability 
skills and qualifications thanks to the 
partners supported;
	
– 73 people now employed in the health  
and social care sector;
	
– 95,941 people in Pakistan now have  
access to mental health support; and,
	
– a special hand cycle provided for a foster 
child who has cerebral palsy enabling this 
little girl to ride a bicycle for the first time.
THE CARETECH FOUNDATION
The CareTech Foundation 
delivers meaningful impact 
to communities in the UK 
and overseas.
Operating Responsibly continued
Our recent acquisition of REHAVISTA GmBH 
will provide unparalleled expertise in Germany, 
estimated to be the second largest funded 
AAC market globally after the USA. With its 
deep knowledge of assistive technology 
and established routes to market, this 
acquisition provides a significant opportunity 
for Smartbox to expand the products and 
services available in Germany, expanding on 
the existing partnership between Smartbox 
and REHAVISTA, and across Smartbox’s global 
customer base, which spans more than  
30 languages and 45 distributors.
Purple
Purple, is a thought leader at the forefront 
of changing the disability conversation for 
disabled people in businesses, 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.
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 commissioning 
groups) which enables them to manage their 
own care and employ carers of their choice.  
It also supports people into employment  
with a range of training programmes to  
build confidence and skills.
Purple helps businesses improve accessibility 
to enable greater independence for disabled 
people. Our highly successful Purple Tuesday 
event involved over 5,000 organisations 
making commitments to improve the  
disabled customer experience.
Progress to date
CareTech Foundation
In the year to September 2021, the Group 
made charitable donations through the 
Foundation of £1.2m (2020: £0.7m).
As the Foundation’s Impact Report 2020 
shows, it is delivering a powerful positive 
difference to individuals’ lives, including:
	
– 359 young people now have employability 
skills and qualifications thanks to the 
partners supported;
	
– 173 people now employed in the health  
and social care sector;
	
– 41,771 people in Pakistan now have access 
to mental health support; and
	
– providing the special hand cycle for a foster 
child with cerebral palsy that enabled this 
little girl to ride a bicycle for the first time.
Our commitment:  
We will donate 2.5% of  
our pre-tax profits to the 
CareTech Foundation.
 
In addition to the financial support, 
we will increase the opportunities for 
staff to engage with and support the 
Foundation’s work, including through 
skills-based volunteering.
CARE4 Communities –  
a better future for our communities
Thriving communities are central to 
our success and we aim to be an active 
contributor in all the locations in which we 
operate. We also support the vital role of  
the wider social care sector through the 
CareTech Foundation. 
60
61
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

Community grants
The Foundation delivers a small grants 
programme to support the communities, 
families and friends of Group staff facing 
significant financial hardship or for issues 
affecting local communities. These grants 
are open to staff members of the Group 
to support the positive contributions they 
make to their communities and through 
volunteering.
Demand for the Foundation’s community 
grants increased steadily again this year. 
During 2020/21, the Foundation has 
supported 50 grants to a value of £74,584. 
Match funding
The Foundation provides match funding 
to CareTech’s staff individual fundraising 
efforts for charitable causes in line with the 
Foundation’s Charitable Objects. During 2021, 
the Foundation supported 51 Match Fund 
grants to a total of £13,701.
Staff Hardship Fund
As part of its overall charitable donations, 
the Company provides a limited donation to 
support the Foundation’s Staff Hardship Fund. 
Demand was significantly higher this year  
due to the impact of COVID-19 and the 
trustees agreed to divert additional funds 
to this grant stream. During the year, the 
Foundation supported 87 grant applications 
totalling £54,141.
The world-first ToddlerLab at Birkbeck 
University’s Centre for Brain and Cognitive 
Development, supported by CareTech 
Foundation, has now finished construction, 
enabling researchers to study toddlers 
in natural environments. The CareTech 
Foundation Home Lab will transform our 
understanding of neurodevelopmental 
conditions.
CASE STUDY
“Last year, we built an impact framework to help the 
CareTech Foundation measure and report its impact. 
This year, it is fantastic to be able to share the growth in 
the reach of the Foundation, but more importantly the 
difference that it has made through increased resilience 
and sustained employment. It is rewarding to work with 
the Foundation to understand how these insights  
can help increase its social impact still further.”
Charlotte Turner – Director, Bean Research
Operating Responsibly continued
Partnership grants
The Foundation delivers its charitable 
objectives through its Partnership Grant 
scheme. It supports a number of significant 
partnerships with credible high-quality 
charities and social enterprises consistent 
with its three key objectives. To be 
considered for the Foundation’s support, 
any partnership must:
	
– Involve medium to long-term investments 
in innovative and high-impact programmes 
that will deliver one or more of the 
Foundation’s objectives.
	
– Demonstrate and be contingent upon any 
investment by the Foundation leveraging 
additional investment.
	
– Enable the Foundation to provide wider  
in-kind support through the expertise  
of the Group’s staff, supply chain and  
wider network.
The number of Partnership Grants supported 
by the Foundation up to the end of FY2020/21 
has grown to 16, with the following new 
partnerships added this year:
	
– Open University – Carers’ Scholarships 
Fund. This exciting new programme, 
designed by Open University, aims to offer 
50 full-fee waiver scholarships to carers so 
they will be able to study flexibly towards  
a higher education qualification. 
	
– The Prince’s Trust – Securing 10,000 jobs 
for young people in health and social 
care. Over the next four years The Prince’s 
Trust, together with the NHS and Health 
Education England, will support 10,000 
young people into careers within the NHS 
and wider health and social care sector. 
	
– Autistica – Social Care Action Fund. 
The Social Care Action Fund supports a 
wave of new research to help show what 
high-quality social care looks like for 
autistic adults and how it can be delivered 
effectively in the real world. 
	
– OnSide Youth Zones – Bridging the Gap. 
Bridging the Gap is a mental health project 
that will help fill a critical gap in providing 
accessible, stigma-free, multidisciplinary 
mental healthcare to young people aged 
8 to 19, or up to 25 with additional needs, 
who have (or are at risk of developing) low 
level or emerging mental health issues.
	
– Carers Worldwide. Upscaling and 
expanding a successfully tested approach 
to support 1,002 unpaid family carers of 
people with disabilities in Savar, Bangladesh. 
	
– Transform Society. The Foundation 
commissioned Transform Society to 
conduct a feasibility study to test the 
viability of a ‘Teach First’ and ‘Police Now’ 
style leadership and talent management 
programme for the social care sector. 
Through CareTech Foundation’s support, 
DePaul UK’s mental health and wellbeing 
intensive workshops were delivered to 
48 homeless young people in North 
East England. 
91% of participating young people, who 
identified health and wellbeing as an area  
for concern, experienced positive change  
by the end of the programme.
CASE STUDY
	
– Royal National Institute for Blind People. 
The Foundation’s support will help to 
establish the Vision Friends Network, 
training 40 staff in CareTech PLC to detect 
and support beneficiaries with sight-related 
impairments. In addition, 110 staff will  
be trained in detection and two  
networking events will be hosted  
through the programme. 
During 2020/21, the Foundation has 
supported Partnership Grants to a value 
of over £555,000.
62
63
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

Operating through eight individual brands, our 
Children's Services include an extensive range 
of services across England, Scotland and 
Wales. These services meet the specific needs 
of children and young people with a variety of 
complex needs. The range of services that we 
provide support the appropriate Care Pathway 
planning of young people through their 
childhood and as they transition to adulthood. 
Our services fall into three categories for 
young people whose primary needs can be 
supported through: Specialist Residential Care 
(children’s homes) and Specialist Education 
(day and residential) Schools and Colleges.
The COVID-19 pandemic presented a significant 
challenge to our services. The majority of our 
young people could not simply ‘go or stay at 
home’ and our staff continued to support our 
services despite some of the most difficult 
circumstances. Going above and beyond 
became the norm, and the extraordinary 
became the ordinary. We are grateful to all our 
staff for their efforts and to the difference they 
made to the young people we support.
Our normal regulators’ inspection cycles were 
paused during the pandemic, however, these 
recommenced in early 2021. 
On 12 March 2021, the Competition Markets 
Authority launched a market study into the 
supply of children’s social care placements in 
England, Scotland and Wales. In September 
they confirmed the decision not to progress 
to a market investigation. The government 
also consulted within the year on the use of 
unregulated services to support young people. 
We welcome and support the proposal for 
greater regulation of such services.
Within the year, we have continued to invest 
in our services and demonstrated tangible 
outcomes for the young people whom we 
support through three key initiatives:
1.	 We have implemented Mind of My Own 
across all our Children’s Services to enable 
us to capture and ‘listen’ to the voice of the 
young people in our services and respond 
to their individual needs. 
2.	We are piloting an outcomes rating scale 
that we intend to adopt across our services. 
This will enable the progress of young 
people to be quantified and demonstrated 
to funders.
3.	Through Smartbox and the 100 Voices 
project we have made significant progress 
towards making two of our schools 100% 
Smartbox enabled. These schools support 
students with autism and other associated 
complex needs. These students have 
significant communication difficulties and 
traditionally communication with these 
students would be supported through 
static symbols. With the whole school 
adopting Smartbox these students are now 
able to communicate as they have never 
done before as all staff (care, teaching, 
therapy and ancillary) have a consistent 
approach to communication. Smartbox 
will become a core part of our standard 
offer in these schools. 
Children’s Services
September 2021
September 2020
Revenue
£268.6m
£252.9m
Underlying EBITDA before unallocated costs
£76.2m
£69.6m
Underlying EBITDA margin %
28.4%
27.5%
Capacity
2,000
1,959
The demand for our services remains high, 
with young people’s presenting needs tending 
to be ever greater. Despite the pandemic 
we have continued to extend our services 
through the development of new specialist 
residential homes and schools. Our growth 
is focused on meeting the demands of the 
market (solo and dual homes to support the 
more complex children) as well as adding 
‘spokes’ to ensure optimal operating efficiency 
of existing services. We are pleased that this 
growth is across all our specialist services. 
Within the year, we opened an additional 11 
homes, increasing our capacity by 22 beds 
and deployed £4.4m capital. We can expect to 
at least achieve the same additional increased 
capacity within the coming year.
Our staff underpin all that we achieve with 
the young people whom we support. We are 
pleased to have launched our Management 
Development Programme to support the 
continued development of our staff, to provide 
meaningful career progression and to grow 
our own talent for the future. The attraction 
and retention of staff remains a key focus.
2022 priorities
	 Increase capacity through  
developments focused on meeting  
the demands of the market
	 Extend the use of Smartbox to young 
people across all our services where  
there is a need
	 Outcomes-rated framework
2022 priorities
	 Quality
	 Outcomes rated framework (see Care 
Quality & Governance Committee on 
page 86)
	 Extend the use of Smartbox
Our Divisional Performance
Our Adults Services operate across England 
and Wales and we support 1,816 people in  
our care.
The service offering falls into two categories:
	
– Supporting adults with learning disabilities, 
including autism, physical disabilities 
and or mental health illness, often with 
a combination or multiple diagnoses. 
Working in partnership with health and 
social care professionals, we enable people 
who use our services to fulfil their goals by 
either residing in our fully residential care 
homes or a supported living service.
	
– Providing care, treatment and support to 
adults who require a significant portion 
of their care – whether long or short 
term – within a hospital environment. Our 
pathway is to support our patients to move 
to a supported community-based setting. 
The care we provide is person-centred, 
and each person who uses our services is 
supported to develop skills that enhance 
their independence. 
The COVID-19 pandemic has been 
unprecedented and presented multiple 
challenges for the adults that we support, 
our staff, society and infrastructure as 
whole. We have just under 5,000 staff, who 
continued to work through incredibly difficult 
circumstances and provided first-class care 
to everyone that we support. The new norm 
was quickly adopted and Extraordinary Days, 
Every Day continued. Our people rose to the 
challenge and, despite the hurdles of self-
isolation, PPE and travel restrictions, they went 
above and beyond to continue to deliver care 
and support to those who needed it most. 
Our gratitude to our staff for their contribution 
and efforts is immense.
Our normal regulators’ inspection cycles 
were paused during 2020 on account of the 
pandemic, but recommenced in early 2021. 
We concluded the year with 86% of services 
being rated as Outstanding or Good, which 
was above the sector average.
Within the year we continued to invest in our 
services and demonstrated tangible outcomes 
for the people in our care, with initiatives such 
as Smartbox.
Mental and learning disability health and 
social care continue to be an area of priority 
for the government, hence there has not 
been the funding squeeze experienced in 
other areas. Further, the market continues 
to grow, supporting more complex needs 
for younger adults to live as independently 
as possible. As such the neuro-rehabilitation 
part of our business, which covers strokes 
and brain injuries, has continuous ongoing 
developments. We are also evaluating further 
opportunities to expand our community-
based living ‘intensive’ support programme  
to drive the personalisation agenda.
Adults Services has been robust and resilient 
through the pandemic. Revenues increased 
by 24.6% to £169.7m and underlying EBITDA 
by 7.5% to £38.4m. Underlying EBITDA margin 
has fallen during this year due to the lower 
initial margins at the recently acquired assets 
transferred from The Huntercombe Group.
Adult Services
September 2021
September 2020
Revenue 
£169.7m
£136.2m
Underlying EBITDA before unallocated costs
£38.4m
£35.7m
Underlying EBITDA margin
22.6%
26.2%
Capacity
2,104
1,997
We have just under 
5,000 staff, who 
continued to work 
through incredibly 
difficult circumstances 
and provided first-
class care to everyone 
that we support.
65
Strategic Report
64
CareTech Holdings PLC  /  Annual Report and Accounts 2021

Digital Technology
September 2021
Revenue
£12.9m
Underlying EBITDA before unallocated costs
£2.4m
Underlying EBITDA margin
18.8%
On 29 November 2021, we announced the 
acquisition of REHAVISTA GmBH (‘REHAVISTA’) 
and its subsidiary LogBUK. REHAVISTA is 
Germany’s largest provider of AAC products 
and services. LogBUK is a subsidiary company 
to REHAVISTA, providing independent speech 
and language therapy to help AAC users 
achieve the best outcomes through specialist 
clinical support.
REHAVISTA’s reach and expertise is 
unparalleled in Germany, estimated to be the 
second largest funded AAC market globally 
after the US. With its deep knowledge of 
assistive technology and established routes to 
market, this acquisition provides a significant 
opportunity for Smartbox to expand the 
products and services available in Germany, 
expanding on the existing partnership 
between Smartbox and REHAVISTA, and 
across Smartbox’s global customer base, 
which spans more than 30 languages and 
45 distributors.
Smartbox has a robust roadmap of product 
and service development, building on 
insight from AAC users, their families and 
professionals supporting them. Throughout 
2021, Smartbox launched a number of 
pioneering products to help people  
achieve more with their technology: 
	
– Lumin-i is a new eye-gaze technology  
that enables people with a physical  
disability to operate a computer using  
their eyes, built in collaboration with  
Smart Eye – a Swedish company that 
creates products for NASA, BMW and 
Thales. It offers incredibly responsive 
performance and is available exclusively  
for Smartbox customers with Grid Pad 12 
and Grid Pad 15 communication aids.
	
– Grid Pad 10s is a dedicated, multi-access 
device designed for people who want a 
portable and rugged communication aid. 
Its high-quality engineering and unique set 
of features provide a next-generation AAC 
device designed with independence and 
durability in mind.
	
– Voco Chat is a symbol vocabulary with 
a low-cell count, designed for people of 
any age who need larger cells. Message 
pathways enable users to participate 
more, engage in conversations, be more 
independent, and talk about important 
topics such as mental health and wellbeing. 
Following the acquisition of a majority holding 
in Smartbox in October 2020 a new Digital 
Technology division has been created.
Smartbox Assistive Technology is a leading 
global provider of Augmentative and 
Alternative Communication (AAC) solutions, 
which support disabled children and adults  
to have a voice and greater independence. 
Smartbox became part of the CareTech group 
in October 2020. Over the past 12 months 
the business has seen rapid growth, with 
revenue of £12.9m and underlying EBITDA of 
£2.4m. Working closely with the new Digital 
Technology Division a five-year strategy has 
been developed, which includes investment 
in new product development, building 
Smartbox’s presence in the US and supporting 
growth of their global distribution network.
During their first year as part of the Group, 
Smartbox has been working closely with  
care and education services provided by 
CareTech and Cambian. A pilot project titled 
100 Voices is enabling the teams to support  
58 children and 42 adults across their services 
to receive the assistive technology and 
specialist support needed to communicate 
and achieve independence. It is also helping 
the Group to better understand how we 
can develop future products and services to 
unlock better outcomes for users through 
technology and innovation. 
2022 priorities
By maintaining a collaborative approach 
to delivering on the Company’s purpose 
of enabling people to live a more 
independent life, Smartbox is set to see 
significant growth in 2022 and beyond.  
Key priorities are:
	 Invest in Smartbox’s US operation and 
support the rapidly increasing demand 
across funded states
	 Integrate REHAVISTA
	 Research and Development
	 Further investments across the  
Digital Care Pathway
Foster Care
September 2021
September 2020
Revenue
£38.2m
£40.9m
Underlying EBITDA before unallocated costs
£7.7m
£8.6m
Underlying EBITDA margin
20.2%
20.9%
Capacity
875
1,028
Looking forward, we are training our foster 
carers with the skills required to manage 
placements that are more complex. We have 
also linked Fostering Care Services with our 
Children’s Services residential team to provide 
an effective Care Pathway.
Foster 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 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 home.
Revenue and underlying EBITDA for  
Foster Care decreased to £38.4m and 
£7.7m respectively. Capacity decreased by 
153 places, as available capacity was not 
always fully utilised due to a number of solo 
placements, COVID-19 restrictions, foster 
parent leavers and in some cases young 
people remaining in placement  
post-independence. 
Foster 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.
2022 priorities
	 Maintain presence in terms of 
placements and fees in a highly 
competitive market
When Kelly joined us, she was very high 
risk to herself, with self-harm and extremely 
challenging behaviours a constant 
problem. Her mental health issues had 
meant she had been living in hospital for 
eight months and was unable to manage 
daily life by herself.
Kelly now lives in a Supported Living setting 
with us (meaning she has her own private 
space with professional support on hand 
as needed). This gives her much-needed 
privacy, independence and security. 
When Kelly first moved into her flat, she 
was very nervous about using the oven 
and microwave; with our support she 
confidently uses her kitchen appliances 
and cooks for herself independently. She is 
free to spend time in communal areas with 
others when she wants to and can return to 
her flat when she feels the need for privacy.
This specialist environment enables us 
to provide Kelly with the professional 
support she needs whilst encouraging 
her to become independent. It has given 
her a sense of belonging and boundaries; 
she understands that support is available 
at specific times and at other times she is 
responsible for herself. She has learned to 
recognise and build healthy relationships,  
a huge change from when she first arrived. 
Having her own personal space has greatly 
contributed to Kelly’s positive outcome; 
she has inspired staff with her amazing 
progress and becomes more and more 
independent with every day.
Independence for Kelly  
as she moves into her  
very own flat
CASE STUDY
Our Divisional Performance continued
66
67
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

Key: Movement in risk
1. RECRUITING AND RETAINING HIGH-QUALITY STAFF
Description
Movement vs prior year
Mitigating Factors
The way in which care and support are provided and 
the reliability of those front-line staff who provide it are 
critical to our service offer. There is a shortage of social 
care workers and clinicians.
The Group seeks to attract and retain staff through:
 Responding to staff turnover, vacancy rates  
and staff engagement surveys.
 Maintaining competitive pay and benefits.
 Positive workplace and culture.
 Investment in our staff through training.
 Overseas recruitment to secure healthcare  
workers from outside the EU.
 Bank staff or agency workers.
2. SERVICE OFFER AND USER NEEDS
Description
Movement vs prior year
Mitigating Factors
We have to provide a service offering which  
matches the needs of those we care for and can be 
communicated to commissioners. This is carefully 
matched locally for every service to reduce the risk  
of service users moving to other service providers.
 Continuous engagement with commissioners 
to understand demand and reviews of pricing  
to ensure we remain competitive.
 The Group has a wide range of services and  
offers a Care Pathway to those we care for.
 Continuous investment to maintain a high-quality 
estate in order to provide excellent quality care.
3. COMPLIANCE & REGULATION
Description
Movement vs prior year
Mitigating Factors
Legislation and regulation will change and become 
more onerous, complex and demanding and is 
therefore considered an area of potential risk for 
the Group and its operations.
 A dedicated compliance team that monitor regulatory 
developments and advises the Group thereon.
 Regular mandatory training for all staff across a range 
of regulatory compliance areas e.g. data protection, 
health and safety, and safeguarding.
 Compliance internal audit team carrying out site visits.
 External independent inspection of our services (‘NYAS’).
 CQC/Ofsted inspections.
Increased risk
Constant risk
Reduced risk
Social care is a long-term contract with the 
public sector and is inherently free of risk so 
long as quality is maintained, outcomes are 
achieved and the price is right. However, social 
care does carry risks that will always be at 
the forefront of our minds. The most obvious 
risk is that a tragedy will occur and that the 
Group will be held to blame. We take that risk 
very seriously. Our principal risk management 
strategy is to ensure that our staff are recruited 
well, are trained and supervised properly 
and are subject to rigorous quality oversight. 
In addition, we know from experience that 
processes and documentation must be very 
carefully observed and constantly reviewed 
to ensure that it protects service users and 
provides the Group with a defendable  
position in the case of tragedy.
These matters, along with general 
safeguarding are subject to intense scrutiny  
by our in-house compliance and quality  
teams and Board-level oversight.
Managing and mitigating risk
All providers of health and social care are 
conscious of the need for management 
vigilance and the requirement to have a 
thorough commitment to delivering care 
that is safe and of a high-quality. CareTech’s 
approach to quality and safe service delivery 
is characterised by a mixture of a dedicated 
compliance team carrying out regular 
inspection audits and a commitment to 
building quality into everything we do.  
We maintain a Risk Register, which includes all 
key risks and how these are mitigated through 
quality of service and good communication 
with service users and local authorities. The 
Risk Register is reviewed monthly.
Emerging risks
The Board have considered long-term 
trends in the social care sector that could 
present both a risk and an opportunity for 
CareTech. Any new emerging risks identified 
by the Executive Committee are considered 
in more detail and reported to the Board. 
The collective area of ESG risk is considered 
an emerging risk for the Group. Key topics 
include the impacts of climate change, 
environmental management and compliance 
with relevant laws and regulations. Recent 
years have seen growing pressure and  
scrutiny across all businesses to behave in  
an increasingly sustainable manner, and to  
be more transparent in doing so. We are 
working towards publishing our first Purpose 
Report in early 2022 which will set out our 
sustainability targets. 
We thoroughly review our operations on a 
regular basis and, in conjunction with the 
approach outlined above, the Directors believe 
this achieves a robust assessment of principal 
and emerging risks. 
Our principal risks
The market for the provision of social care 
services continues to be dynamic, presenting 
both risks and opportunities. The overall 
number of people needing support will 
increase, and a smaller proportion of them will 
be placed into residential services. Those who 
do need a residential care solution will have 
more complex needs and are likely to require 
a wider range of services, including clinical 
and therapeutic support. Our operational 
management teams are already focusing 
on the delivery of high-quality care. As we 
move forward this will become increasingly 
specialised with the benefit of professional, 
qualified care co-ordinators who will prepare 
and direct personalised care plans within 
the services.
Most service users will be supported in their 
own homes through domiciliary care or in 
more formal supported living arrangements. 
This is a major growth area for care providers 
and CareTech already has a solid reputation 
for its high-quality and flexible solutions. We 
are building this to a higher level and refining 
our organisational structure to build more 
rapidly on our successes to date.
Principal Risks and our Strategic Response
69
Strategic Report
68
CareTech Holdings PLC  /  Annual Report and Accounts 2021

7.	 CYBER AND DATA SECURITY
Description
Movement vs prior year
Mitigating Factors
Cyber and data security remain a key risk as technology 
and third-party cloud-based services continue to be 
subject to the threat of cyberattacks. A data breach or 
attack resulting in operational disruption could reduce 
the effectiveness of our systems. This in turn could  
result in loss of income, loss of financial, customer  
or employee data, fines and/or reputational damage. 
 CareTech have a specialist team and robust Information 
Security Management in place with a wide range of 
proactive and reactive security controls including  
up- to-date anti-virus software across the portfolio, 
and network/system monitoring.
 Regular internal and external review of control 
effectiveness.
 Effective data protection teams to minimise data  
risks and ensure compliance with GDPR.
8.	SUSTAINABILITY AND CLIMATE CHANGE
Description
Movement vs prior year
Mitigating Factors
The Group’s continued success depends on the 
environmental and sustainability of its operations. 
Changes in regulations could increase the cost  
of our operations.
 Sustainability Director appointed and increased focus 
on ESG.
 ESG discussed as a standing agenda item in Executive 
Committee meetings and Board.
 Inaugural Purpose Report to be published setting out 
the Group’s commitments.
By order of the Board
 
Farouq Sheikh OBE
Group Executive Chairman
6 December 2021
Key: Movement in risk
Increased risk
Constant risk
Reduced risk
4. SERVICE VALUE
Description
Movement vs prior year
Mitigating Factors
The service offer has to be provided to meet the needs 
of the commissioners at a fair price and this is coming 
under increased scrutiny as commissioners regularly 
review value for money.
 The Group engages frequently and proactively with  
our commissioners at a local level and strategically  
at regional and national levels.
5. REPUTATION
Description
Movement vs prior year
Mitigating Factors
The Group must have a reputation for delivering services 
that offer good value and take account of all risks. Social 
care is not a high-risk business proposition but there 
are several unique factors that could cause difficulties. 
We care a great deal about what we do and have 
established a reputation for careful management of all 
those processes that could expose us to risk. A health 
and safety breach would impact reputation, brand and 
compromise the safety of those in our care. This could 
impact on the demand for our business as well as incur 
costs to rectify.
 Established Care Quality and Governance Committee  
to advise on our regulatory framework.
 Regular review of policies and procedures to monitor 
service delivery and ensure high-quality care is 
delivered in line with best practice.
 Well-established relationship with our Regulators.
 Financial PR agency appointed to respond swiftly  
to any issues.
 Independent audit of Health and Safety as well 
as RIDDORS (‘Reporting of Injuries, Diseases and 
Dangerous Occurrences Regulations’) so that all 
incidents are recorded and acted upon.
6.	GROWTH FUNDING
Description
Movement vs prior year
Mitigating Factors
Funding has to be anticipated and put in place to 
support the growth ambitions of the Group. The Group 
ensures that all of its finance facilities are monitored and 
reviewed regularly in particular during our budget setting 
and forecasting processes.
The level of debt to fund operations and to support 
growth has to be carefully managed. Different forms 
of leasing and debt are reviewed quarterly when all 
covenants are also reviewed.
 The Group monitors and manages its liquidity and 
financial liabilities falling due and the cover against  
its term loan covenants and is actively focused on  
cash management.
 Regular reporting of headroom and compliance  
of covenants.
 Regular meetings and disclosure with bank  
syndicate members.
 The Group has access to an unutilised £25m  
revolving credit facility should its current cash  
position deteriorate.
 The Group has a £930m property with the ability  
to leverage in a short timescale, if required.
Principal Risks and our Strategic Response continued
70
71
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

Condensed Income Statement 
2021
 £m
2020 
£m
% 
change
Revenue
489.1
430.0
13.8%
Gross profit
165.7
147.9
12.0%
Administrative expenses excluding depreciation  
and share-based payments’ charge
(65.2)
(57.0)
14.4%
Underlying EBITDA
100.5
90.9
10.5%
Underlying EBITDA margin
20.5%
21.1%
Depreciation
(19.5)
(17.0)
14.7%
Share-based payments’ charge
(0.5)
(0.3)
43.3%
Underlying operating profit
80.5
73.6
9.4%
Non-underlying items
(1.0)
(20.2)
(95.1)%
Net financial expenses
(13.3)
(15.5)
(15.0)%
Profit before tax
66.2
37.8
75.1%
Taxation
(30.9)
(10.7)
(186.9)%
Profit for the year
35.3
27.1
33.7%
Non-controlling interest
(3.4)
(1.9)
76.9%
Profit for the year attributable to owners of the Parent
31.9
25.1
27.0%
Weighted average number basic shares (millions)
110.8
109.8
Underlying basic earnings per share
47.87p
42.26p
13.3%
Statutory basic earnings per share
28.80p
22.88p
25.9%
Full-year dividend per share
14.1p
12.75p
10.6%
Revenue and underlying EBITDA (pre unallocated costs) 
2021
2020
Revenue
£m
Underlying
EBITDA
£m
Underlying
EBITDA
margin 
Revenue
£m
Underlying
EBITDA
£m
Underlying
EBITDA
margin
Adults Services
169.7
38.4
22.6%
 136.2 
35.7
26.2%
Children’s Services
268.6
76.2
28.3%
252.9
69.6
27.5%
Foster Care
38.2
7.7
20.2%
 40.9 
8.6
20.9%
Digital Technology
12.9
2.4
18.8%
–
–
Intercompany
(0.2)
Total
489.1
124.7
25.5%
430.0
113.8
26.5%
Group underlying revenue increased by 13.8% to £489.1m (2020: £430.0m). 
The Adults Services division saw an increase 
in capacity due to seven sites transferred from 
The Huntercombe Group. Revenues and 
underlying EBITDA increased by 24.6% and 
7.5% respectively. The division continues to 
see high levels of occupancy at 91% across 
the mature estate and 86% on a blended 
basis which includes sites that are being 
reconfigured and under development. 
Children’s Services saw an increase in 
capacity, and revenues and underlying EBITDA 
increased by 6.2% and 9.5% respectively. 
During the year, 25 properties were purchased 
and have either opened or will open during 
the 2021/22 year. The division benefitted from 
11 new services opening adding a 22-bed 
capacity.
Foster Care’s revenue and underlying EBITDA 
decreased by 6.7% and 9.9% respectively, due 
to COVID-19 restrictions and a reduction in 
the number of foster parents. 
The Digital Technology division ended 
the period with revenues at £12.9m and 
underlying EBITDA of £2.4m. 2,558 devices 
were sold during the year in 18 different 
countries, a significant increase to the 
previous year. 
Group underlying EBITDA before unallocated 
costs increased by 9.6% to £124.7m and 
Group underlying EBITDA increased by 10.5% 
to £100.5m. Underlying EBITDA margin 
decreased to 20.5% reflecting the lower  
initial margins at the recently acquired 
Huntercombe services. 
Group Financial Review
Results
The Group delivered a strong set of results for 
the financial year ended 30 September 2021. 
Following the acquisition of a majority holding 
in Smartbox in October 2020 and given the 
Group's ambitions to build its digital healthcare 
capabilities, we created a new Digital 
Technology division. Smartbox is a market-
leading creator of software and hardware 
that helps disabled people without speech 
to have a voice and live more independently. 
Smartbox has successfully integrated into the 
Group, with the launch of a new 100 Voices 
initiative (see page 67) to ensure that Smartbox 
technology reaches adults and children in 
CareTech care homes, specialist schools  
and complex needs services. 
On 30 November 2020, the Group completed 
the transfer of seven services previously 
operated by The Huntercombe Group which 
broadens our adult specialist service pathway 
by adding highly specialised facilities for the 
treatment of adults with complex learning 
disabilities, autism and mental health diagnoses. 
The sites have been integrated into the Group.
The Group reports certain non-IFRS 
performance measures, known as Alternative 
Performance Measures (APMs). The Directors 
believe that APMs provide useful supplemental 
information for the readers of the Annual 
Report and, when read in conjunction with the 
IFRS financial information, assist in providing 
a balanced view of the Group’s financial 
performance and financial position.
In assessing its performance, the Group has 
adopted a number of APMs as the Directors 
are of the view that these will assist the readers 
of the accounts when understanding our 
performance relative to other companies 
in our sector and in the wider economy. 
These measures are also used by management 
for planning and reporting purposes. They 
may not be directly comparable with similarly 
described measures used by other companies. 
Our APMs referred to in this report and in 
the financial statements as a whole include, 
underlying EBITDA, non-underlying items, 
underlying earnings and non-financial 
measures such as capacity, occupancy and 
regulator quality ratings. You can read more 
about APMs on page 173.
Capacity and occupancy
Adults Services capacity increased to 2,104 
(2020: 1,997) with the increase primarily 
due to seven services transferred from 
the Huntercombe Group. These services 
complement our Adult Specialist Services 
division and broaden our Care Pathway in 
offering specialised services to adults with 
complex learning disabilities, autism and mental 
health diagnoses. During the year, one of these 
services was closed and will be repositioned 
and reopened during the new financial year.
Children’s Services increased to 2,000 beds 
(2020: 1,959), primarily due to 11 new sites 
opening during the year. Fostering decreased 
to 875 (2020: 1,028) due to a reduction in the 
number of foster parents and blocked beds.
As at the balance sheet date, the Group 
capacity remained broadly flat at 4,979  
(2020: 4,984) with an increase in our 
residential services offset by the decline  
in the Fostering division. 
At 30 September 2021, occupancy levels  
in the mature estate were 80% (2020: 83%), 
reflecting the timing of the start of the 
educational year due to a number of the 
Group’s non-residential schools operating 
on a 38-week basis with the new education 
term commencing in October and beds 
being blocked due to recruitment challenges. 
Blended occupancy was 78% (2020: 80%).
Highlights
	 Revenue: £489.1m (increase of 13.8%).
	 Underlying EBITDA: £100.5m 
(increase of 10.5%).
	 Underlying profit before tax: £68.3m  
and statutory profit before tax: £66.2m.
	 Underlying basic EPS: 47.87p (increase  
of 13.3%) and statutory basic EPS:  
28.80p (increase of 25.9%).
	 Net debt: £258.7m.
	Strong operating cash conversion  
of 96.1%.
	 Net assets: £380.9m.
72
73
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

Capital expenditure was £31.5m which 
includes £11.8m to purchase and develop new 
sites, £16.8m maintenance capex and software 
development of £2.9m. 
The Group dividend payments was £17.3m 
(2020: £13.0m) and corporation tax payments 
of £6.0m (2020: £3.9m) were paid during  
the year.
Bank facilities
At 30 September 2021, the Group has bank 
borrowings of £322.4m, drawn under facilities 
which mature in August 2023. During the 
course of the year, the Group completed 
the extension of the Term Loan A facility of 
£161.2m which will now mature in August 
2023. The margin of the facility and covenants 
remain unchanged, reflecting the highly 
cash-generative nature of the business and 
deleveraging profile. In addition, both the 
Group’s loan and interest rate swaps have 
migrated to Compounded Daily SONIA as  
the reference rate. 
CareTech’s three key covenant ratios are 
leverage (ratio of net debt to covenant EBITDA 
to be no more than 4.5), interest cover (ratio 
of covenant EBITDA to net finance costs to 
be no less than 4x) and LTV (ratio of property 
value to net debt to be no more than 62.5%). 
As at 30 September 2021, we were operating 
comfortably within these ratios at 2.7x (2020: 
3.1x), 9.5x (2020: 7.8x) and 42% (2020: 42%) 
respectively. 
Property valuation
The Group has a significant property portfolio, 
consisting of 407 freehold and long leasehold 
sites. The Company has undertaken a 
scheduled property revaluation, which  
Knight Frank has valued at £930m, an increase 
of 20% since its last valuation in September 
2018 of £774m. 
Dividends
Our policy has been to increase the total 
dividend per year broadly in line with the 
movement in underlying diluted earnings per 
share. The final dividend will rise broadly in line 
with the increase in underlying earnings per 
share and increase to 9.5p per share (2020: 
8.75p), bringing the total dividend for the year 
to 14.1p (2020: 12.75p), a growth of 10.6%. 
Dividend cover for 2021, based upon diluted 
earnings per share before non-underlying 
items is 3.3x (2020: 3.3x).
Christopher Dickinson
Group Chief Financial Officer
6 December 2021
Longer-term Viability Statement
In accordance with the 2018 UK Corporate 
Governance Code, the Directors assessed the 
viability of the Group and have used a period 
of three years for their assessment. A three-
year period is considered the appropriate 
timeframe to assess the Group’s prospects as 
it is consistent with strategic planning for the 
Group, management incentive schemes and 
medium-term financing considerations. 
The assessment conducted considered 
the Group’s revenue, underlying EBITDA, 
operating profit, cash flows, risks management 
controls and loan covenants over the three-
year period. The longer-term prospects of the 
Group are driven by its strategy and business 
model, as outlined on pages 08 to 11. These 
metrics were subject to downside stress 
testing over the assessment period, taking 
account of the Group’s current position,  
the Group’s experience of managing adverse 
conditions in the past and the impact of a 
number of severe yet plausible scenarios 
based on the principal risks set out in the 
Strategic Report on pages 1 to 75. The 
downside scenarios include, but are not 
limited to, a reduction in revenue, site closures, 
and a cyberattack. This is done to identify risks 
to liquidity and covenant compliance.
This review included the following key 
assumptions:
	
– Modest revenue and margin growth 
beyond 2022.
	
– No major changes in working capital.
	
– Future dividends in line with current policy.
	
– No change in capital structure. The 
assessment is based on the assumption 
that the Group’s term loans will be 
refinanced in advance of their maturity 
in August 2023. Following the recent 
successful amendment to the Term Loan 
A maturity, the Group is confident in 
ongoing lender support, and also plans  
to refinance the facilities well in advance  
of the August 2023 facility end dates.
	
– The government will not change its 
existing policy towards utilising private 
provision of social care services to 
supplement the local authorities offering 
(which we consider to be low likelihood).
Based on this consideration of principal risks 
and the forecasting exercise completed, the 
Board has a reasonable expectation that the 
Group will be able to withstand the impact  
of the specific scenarios considered over  
the three-year period assessed. 
Operating profit and profit before tax
The Group presents operating profit and profit 
before tax as both underlying and statutory 
results. Underlying operating profit increased 
by 9.4% to £80.5m. 
The depreciation charge is £19.5m (2020: 
£17.0m) reflecting the investment in land 
and buildings, motor vehicles and fixtures, 
fittings and equipment and the share-based 
payments’ charge of £473k (2020: £330k) 
reflecting the issuance of shares under the 
ExSOP in November 2019.
Non-underlying items include the write back 
of a provision of £11.8m following the final 
judgement by the Supreme Court that social 
care staff are not entitled to the National 
Minimum Wage for sleep-in shifts, a £5.8m 
gain on the bargain purchase of seven sites 
transferred from The Huntercombe Group 
given the transaction was structured with 
no capital outlay, offset by amortisation of 
£10.3m, restructuring costs of £4.8m relating 
to the integration costs associated with 
Cambian, Smartbox and assets transferred 
from The Huntercombe Group, acquisition 
costs of £0.8m, a net £1.5m on COVID-19 
related expenditure and a £1.2m donation  
to the CareTech Charitable Foundation. 
During the year, the Group has adopted 
strict precautions in line with government 
and public health guidelines for all our 
sites which included enhanced levels of 
cleaning, additional hygiene facilities and 
social distancing. Adult social care providers 
have been able to access funding from 
local authorities to support the provision of 
additional resources and associated costs 
necessary to halt transmission of COVID-19. 
Funding of £2.7m was received for the year, 
which almost covered the additional costs 
associated with COVID-19 of £4.2m. 
Underlying financial expenses decreased 
to £12.2m (2020: £13.9m) reflecting the 
accelerated deleveraging and reduction in 
banking covenants. Non-underlying financial 
expenses of £1.1m (2020: £1.6m) were 
incurred relating to the non-cash movement 
in derivative financial instruments.
Underlying profit before tax increased by 
14.6% to £68.3m (2020: £59.7m) and statutory 
profit before tax increased by 75.1% to £66.2m 
(2020: £37.8m). 
Taxation 
The effective underlying tax rate was 17.4% 
(2020: 18.7%) and reflects management’s 
expectations of future capital investment 
through organic developments and 
reconfigurations relative to available  
capital allowances. 
On 24 May 2021, legislation was substantively 
enacted in the UK to increase the corporate 
tax rate to 25% with effect from 1 April 2023. 
As a result of the change, an exceptional  
tax charge of £21.7m was recognised for  
the year ended 30 September in relation  
to the reassessment of deferred tax assets  
and liabilities. 
Earnings per share
The weighted average number of shares 
in issue rose to 110.8m. Underlying basic 
earnings per share increased by 13.3% to 
47.87p from 42.26p in 2020 and statutory 
basic earnings per share increased by  
25.9% to 28.80p (2020: 22.88p).
Cash flow and net debt 
The cash flow statement and movement in net debt for the year are summarised below:
2021
 £m
2020
 £m
Underlying EBITDA 
100.5
90.9
Decrease/(increase) in working capital
(3.9)
3.3
Cash inflows from operating activities before non-underlying items
96.6
94.2
Principal payment of lease liabilities
(5.8)
(6.7)
Tax paid 
(6.0)
(3.9)
Interest paid
(10.6)
(10.7)
Dividends paid
(17.3)
(13.0)
Capital expenditure
(31.5)
(26.8)
Proceeds from disposal of fixed assets
1.3
1.5
Payments for business combinations
(5.4)
(2.0)
Non-underlying cash flows 
(7.7)
(5.9)
Contingent consideration paid
(1.5)
(0.7)
Shareholder loan
0.0
(1.8)
New HP arrangements
(2.5)
(2.0)
Proceeds from share issue
0.9
0.0
Movement in net debt
(10.5)
(22.2)
Opening net debt
268.9
291.1
Closing net debt
258.7
268.9
The Group continues to have a strong financial position, with net debt at 30 September 2021 
being £258.7m compared with £268.9m at 30 September 2020. 
Strong operating cash flow has been deployed to purchase 25 new properties, to acquire 
Smartbox for £5.4m (net of cash acquired), payment of contingent consideration in relation 
to the AS Group of £1.5m, integration and restructuring costs of £4.2m associated with the 
acquisition of Smartbox, the restructuring of assets transferred from The Huntercombe Group 
and integration costs associated with Cambian. 
Group Financial Review continued
74
75
CareTech Holdings PLC  /  Annual Report and Accounts 2021
Strategic Report

GOVERNANCE
Corporate Governance Report
BOARD AND COMMITTEE MEETINGS
THE BOARD
	
– Professor Moira Livingston (Chair)
	
– Karl Monaghan
	
– Jamie Cumming
Promotes a culture of high-quality 
and the safe care of service users. 
Responsible for monitoring specific 
non-financial risks and their 
associated processes, policies  
and controls.
CARE QUALITY AND 
GOVERNANCE COMMITTEE
	
– Karl Monaghan (Chair)
	
– Professor Moira Livingston
	
– Jamie Cumming
Responsible for ensuring our Board 
and its Committees have the right 
balance of skills, knowledge and 
experience and ensuring adequate 
succession plans are in place.
NOMINATIONS COMMITTEE
STAFF CONSULTATIVE COMMITTEE
	
– Jamie Cumming (Chair)
	
– Professor Moira Livingston
	
– Karl Monaghan
The role of the Remuneration 
Committee includes details 
of Directors’ remuneration, 
shareholdings and share options 
scheme information. A key Group 
strategy is to attract and retain 
talented and committed staff at  
every level of the business and the 
Remuneration Committee aims to 
foster remuneration philosophy, 
policies and procedures to  
achieve this.
During the financial year, CareTech established a Staff Consultative Committee 
for the purposes of workforce engagement in accordance with the 
recommendations of the 2018 UK Corporate Governance Code. 
The aim of the Staff Consultative Committee is to monitor and facilitate 
workforce engagement within the Group in order to foster a meaningful 
dialogue between the Board and its employees, and the awareness of  
employee matters will aid the Board’s decision-making process. 
REMUNERATION COMMITTEE
	
– Karl Monaghan (Chair)
	
– Professor Moira Livingston
	
– Jamie Cumming
Responsible for reviewing and 
reporting to the Board on the 
Group’s financial reporting, 
maintaining an appropriate 
relationship with the Group’s  
auditor and monitoring the  
internal control systems.
AUDIT COMMITTEE
GROUP EXECUTIVE TEAM
The Board delegates the execution of the strategy and the day-to-day 
management of the Group to the Group Executive Team, which operates  
under the direction and authority of the Group CEO. The team generally  
meet once a month.
Farouq Sheikh OBE
Introduction
This is our Corporate Governance Report, which sets out how the Board and its Committees 
operate and how we are committed to maintaining the highest level of corporate governance. 
The Board firmly believes that an effective corporate governance framework is essential to 
underpin the success of the business, supporting management while ensuring an appropriate 
level of challenge and exercising proper oversight while facilitating decision-making.
The Board is focused on taking steps to enhance standards of governance and disclosure 
towards the levels required for Premium Listed companies, should the Board ultimately  
decide to take that step. 
The Board remains committed to achieving the highest standards of integrity, ethics, 
professionalism and business practice throughout Group operations. Therefore, the Group 
has aligned its governance with best practice and is therefore adopting the provisions of the 
UK Corporate Governance Code 2018 on a comply or explain basis. The Code and associated 
guidance is available on the Financial Reporting Council website at www.frc.org.uk. We have 
noted the Code provisions below where the Group does not comply with the Corporate 
Governance Code in full. 
The Board has delivered sustainable and 
reliable growth since its admission to  
trading on AIM. CareTech has aimed to be  
a defensible stock even in difficult times and 
has adopted a progressive dividend policy.  
The Group has also had direct involvement  
in a variety of community-based programmes 
further improving our corporate and services 
reputation and helping to foster strengthened 
relationships with commissioners.
CareTech’s key strategic priorities include 
building the industry’s best leadership and 
workforce, a continual focus on improving 
the quality and scope of our Care Pathway 
and accelerating digital adoption in UK social 
care. Achieving these strategic priorities 
will increase our market share and deliver 
shareholder value. The Board ensures that the 
Group is appropriately funded to deliver its 
strategy. The Board appreciates that effective 
communication and engagement with the 
Group’s shareholders and the investment 
community as a whole is a key objective. 
The views of both institutional and private 
shareholders are important. The Group 
Executive Chairman has overall responsibility 
for ensuring this communication is effectively 
conveyed, and for making the Board fully 
aware of key shareholders’ views, comments 
and opinions.  
1. Principles A–E: Board leadership and Company purpose
Contact with investors throughout the year 
is a priority and the Board strives to look 
after their interests. General presentations to 
major shareholders following the publication 
of the Group’s annual and interim results are 
conducted by the Group Executive Chairman 
and the Group Chief Financial Officer, as are 
regular meetings through the year with fund 
managers and investment analysts.
Effective communication with employees and 
commissioners is also vital to the achievement 
of the Group’s strategy. The Group has a 
number of initiatives and policies to engage its 
employees through training and development, 
supervision, recognition of achievement 
through staff awards, staff engagement 
surveys, the Staff Consultative Committee 
and development of a communication 
plan. The Board believe that its workforce 
policies, including its in-house training and 
HR systems support the Group’s focus on 
the provision of quality services and allow 
for sustainable growth. The Board believe 
the effectiveness of its staff engagement 
procedures is reflected in its staff turnover 
levels, which are below the industry average 
and in the Group’s quality ratings, which are 
above the industry average. The Board also 
believe the Group’s business development 
and marketing function have established 
strong relationships with commissioners and 
actively strives to maintain these relationships. 
Being a socially responsible organisation with 
a focus on ethical standards aligned with 
commercial objectives remains a core aim. 
The Board believes that behaving responsibly 
and maximising the benefits of a strong 
relationship with its stakeholders is an integral 
part of a continuing process of building  
long-term value.
The Group’s framework of controls includes 
identification and management of any 
conflicts of interests. The Board follows 
specific procedures to identify potential 
conflicts of interest, including those in relation 
to significant shareholders. Firstly, only 
independent Directors (i.e. those that have 
no interest in the matter under consideration) 
are able to take relevant decisions. Secondly, 
in taking the decision the Directors must act 
in a way they consider, in good faith, will be 
most likely to promote the Group’s success. 
In addition, Directors can impose limits or 
conditions when giving authorisation if they 
think this is appropriate. It remains the Board’s 
intention to report annually on the Company’s 
procedures for ensuring that the Board’s 
power of authorisation in respect to conflicts 
is operated effectively and that procedures 
have been followed.
The Board focuses primarily upon 
strategic and policy issues, and is 
responsible for:
	
– Leadership of the Group.
	
– Implementing and monitoring 
effective controls to assess and 
manage risk.
	
– Supporting the Group Executive 
Team to formulate and execute  
the Group’s strategy. 
	
– Monitoring the performance  
of the Group.
	
– Setting the Group’s values  
and standards.
The Board delegates matters to its four principal committees.
76
77
CareTech Holdings PLC  /  Annual Report and Accounts 2021

GOVERNANCE
BOARD OF  
DIRECTORS
APPOINTED
SKILLS AND 
EXPERIENCE
Farouq Sheikh OBE
Group Executive Chairman
Aged 63
Haroon Sheikh
BSc Group Chief  
Executive Officer
Aged 65
Christopher Dickinson
Chief Financial Officer
Aged 43
Mike Adams OBE
Executive Director
Aged 50
Jamie Cumming
Non-Executive Director
Aged 71
Karl Monaghan
Non-Executive Director
Aged 59
Prof. Moira Livingston
Non-Executive Director
Aged 59
Farouq has been a key architect in 
CareTech’s growth, having co-founded 
the Group and been involved in the vision 
and strategy from the outset in 1993. 
With a background in law and a good 
understanding of finance and commerce, 
Farouq has been instrumental in securing 
debt and equity funding for the Group as 
well as leading the management team in 
winning a number of long-term contracts 
from local authorities and health 
commissioners.
Farouq is a leading business entrepreneur, 
philanthropist and investor, and has 
initiated and overseen the successful 
equity investments and the subsequent 
exits for 3i Group PLC (in 1996 and 2002) 
and Barclays Private Equity (in 2002 and 
2005). His intimate knowledge of the 
social care sector and his commercial  
and negotiating expertise has guided  
the Group’s growth.
Farouq was honoured with an OBE in 
2020 for his services to social care, and 
has been presented with a number of 
Entrepreneur of the Year awards by 
prestigious organisations including 
Laing and Buisson, Coutts Bank and 
Ernst & Young. He also presents widely 
at healthcare conferences, raising 
awareness of the specialist social  
care sector.
As Patron and Enterprise Fellow of the 
Prince’s Trust and a member of the 
Mosaic National Advisory Board, Farouq 
supports young people by passing on his 
experience to inspire the next generation 
of entrepreneurs. He is a Founder Trustee 
of the CareTech Charitable Foundation 
formed in 2017.
Mike has a significant track record in 
the social care, health and disability 
sectors. He is CEO of Purple Zest 
Limited, a Group disability business, 
and an Executive Director of CareTech. 
In previous roles he was Director 
of the National Disability Team, 
responsible for policy and practice 
for disabled students in higher 
education; Director of Operations for 
the Disability Rights Commission for 
two years; and Chief Executive Officer 
of ecdp, an Essex-based user-led 
disability organisation. Mike spent 
nine months as acting Chair of a large 
acute hospital trust in Essex and has 
previously chaired an expert panel  
on Access to Work, the Government’s 
flagship disability employment 
programme. Mike has been awarded 
an Honorary Doctor of Education  
for disability leadership from Anglia 
Ruskin University.
Mike was honoured with an OBE in 
2012 for his services to disability and 
became a Trustee of the CareTech 
Charitable Foundation in 2017.
Founder
June 2010
Prior to joining CareTech, Chris was a 
Managing Director at Jefferies where he 
acted for the Group on its acquisition of 
Cambian. Prior to Jefferies, Chris spent 
14 years at J.P. Morgan advising on many 
significant M&A transactions and debt 
and equity raises. Chris is a chartered 
accountant, having been admitted as a 
member of the ICAEW in 2004 and as 
a Fellow in 2014, and has a degree in 
Computer and Management Science 
from the University of Warwick.
After graduating from University 
College Dublin with a Bachelor of 
Commerce degree, Karl trained as 
a chartered accountant with KPMG 
in Dublin. He has worked in the 
corporate finance departments 
at a number of merchant banks 
and stockbrokers, latterly at Credit 
Lyonnais Securities for seven years 
and Robert W. Baird for two years until 
June 2002. Karl set up Ashling Capital 
LLP in December 2002 to provide 
consultancy services to quoted 
and private companies. He sits on a 
number of AIM quoted and private 
company boards.
January 2020
October 2005
Haroon is amongst the most experienced 
CEOs in the health and social care 
sector and one of the UK’s leading 
entrepreneurs and philanthropists. Along 
with his brother Farouq, he co-founded 
CareTech. As Group CEO he actively leads 
the day-to-day running of the Group 
and its international expansion, and has 
been instrumental in assembling a highly 
talented leadership team, to support 
the continued growth of the business. 
Haroon brings commercial acumen, 
related industry experience and property 
knowledge. He has a deep commitment 
and passion for delivering high-quality 
care and support to people with  
complex needs. 
Haroon is Patron and Enterprise Fellow of 
the Prince’s Trust and is a member of the 
UK Advisory Council of the British Asian 
Trust under the patronage of HRH The 
Prince of Wales.
In 2008, Haroon and Farouq were 
winners of the highly valued Coutts 
Family Business Prize and widely 
applauded for the quality and social 
integrity of the business they created. 
In 2009, they were both finalists in the 
Ernst & Young Entrepreneur of the Year 
Awards and in 2016 they received the 
Outstanding Contribution Award at 
the Laing & Buisson Annual Healthcare 
Awards. In 2019, Haroon and Farouq were 
winners of the 'Asian Business of the Year'.
Haroon, a graduate of the University 
of London, is a Founder Trustee of the 
CareTech Charitable Foundation formed 
in 2017, and is Chairman of the Trustees, 
working closely with the Foundation’s 
CEO and independent Trustees.
Jamie joined the Board as a Non-
Executive Director in 2013. Following 
a long career in corporate advisory 
and broking in the City, including 
acting as Chief Executive Officer of 
N+1Brewin LLP, and latterly as Senior 
Adviser to Cantor Fitzgerald Europe, 
Jamie has significant experience in 
working with small and mid-sized UK 
companies. Jamie currently utilises his 
commercial experience in supporting 
growth companies in non-executive 
roles, is an associate of Ruffena Capital 
and has qualified as a fellow of the 
Chartered Institute of Securities & 
Investment.
Moira has been involved in health 
and social care for 35 years. Moira 
spent many years working initially 
as a Doctor in the field of older-age 
psychiatry and latterly as a senior 
clinical leader and manager in the 
NHS.
Moira has held a number of Director- 
level leadership roles in the healthcare 
sector. Moira has led national 
programmes for the Department of 
Health and was a specialist adviser 
with the CQC. Moira is also a Non-
Executive Director at Leeds Teaching 
Hospitals NHS Trust, where she is 
a member of the Audit committee 
and chairs the Quality Assurance 
Committee.
Founder
March 2013
May 2019
C
C
C
C
COMMITTEE MEMBERSHIP KEY
Care Quality and Governance Committee
Audit Committee
Nominations Committee
Remuneration Committee
Corporate Governance Report continued
78
79
CareTech Holdings PLC  /  Annual Report and Accounts 2021

GOVERNANCE
Corporate Governance Report continued
The Directors attended the following meetings in the year to 30 September 2021:
Board 
(10 meetings)
Audit Committee 
(2 meetings)
Remuneration 
Committee 
(6 meetings)
Care Quality 
and Governance 
Committee 
(4 meetings)
Farouq Sheikh OBE
10
–
–
–
Haroon Sheikh
10
–
–
–
Christopher Dickinson
10
2
6*
–
Karl Monaghan
10
2
6
4
Mike Adams OBE
10
–
–
–
Jamie Cumming
10
2
6
4
Prof. Moira Livingston
10
2
6
4
* By invitation 
Shareholder engagement
Through presentations and regular meetings 
between the Executive Directors, analysts 
and institutional shareholders, including those 
following the announcements of the Group’s 
annual and interim results, the Board seeks to 
understand the objectives of our shareholders. 
Copies of the Annual Report and Financial 
Statements are issued to all shareholders 
where requested and copies are available 
on the Group’s website (www.caretech-uk.
com). The Group also uses its website to 
provide information to shareholders and other 
interested parties. The Company Secretary 
deals with correspondence as and when it 
arises throughout the year.
Further details on the Group’s engagement 
with shareholders is contained in the s.172 
statement on page 52. 
Workforce policies and practices
Our reputation for acting responsibly plays 
a critical role in the Group’s success as a 
business and our ability to generate value 
for shareholders. We maintain high ethical 
conduct that is reflected in policies that are 
embedded across the Group including the 
Modern Slavery Act, and anti-bribery and 
corruption policy.
Modern Slavery Act 2015
The Modern Slavery Act 2015 came into force 
in October 2015 consolidating legislation 
surrounding modern slavery and human 
trafficking. We have a zero-tolerance approach 
towards modern slavery or human trafficking 
across all areas of our business including in 
our supply chain and are committed to acting 
ethically and with integrity throughout all of 
our dealings. 
We aim to work in partnerships with all of 
our contractors, suppliers and other business 
partners to ensure that they share and work 
towards the same values we hold against 
slavery and human trafficking. 
A full version of our Anti-Slavery and 
Trafficking Statement can be found on  
our website. 
Anti-bribery and corruption
The Group maintains a policy for anti-
bribery and corruption and has a zero 
tolerance towards such activities, and requires 
compliance with the laws of the UK, including 
the Bribery Act 2010 in respect of Group 
conduct both in the UK and overseas. 
Internally we operate a suite of policies that 
are embedded into our culture and help 
govern our activities. Examples of these 
include:
	
– Code of Conduct Policy, which sets out 
the behaviours we expect of our staff  
when acting for the Group.
	
– Recruitment Policy, all of UK employees 
are recruited after a robust recruitment 
process in line with UK employment laws 
and are required to undertake appropriate 
Disclosure and Barring Service checks.
	
– Whistleblowing Policy, we want staff 
to feel confident and empowered to 
raise any issues or concerns and have 
a whistleblowing policy in place. Our 
whistleblowing policy helpline is managed 
by a third-party provider, enabling staff to 
raise concerns about issues of safety or 
wrongdoing, anonymously if necessary. 
All such concerns received through 
the helpline are sent to the Head of 
Compliance for review, and to ensure that 
they are appropriately investigated and 
concluded. The Board is provided with 
updates on material whistleblowing events 
as they are reported from time to time  
to the Executive Leadership Team.
We also continue to regularly monitor the 
risks we face. All risks are reviewed by either 
our Audit Committee or our Care Quality and 
Governance Committee.
General Data Protection Regulations 
('GDPR')
We take our responsibilities as a data 
controller/processor very seriously and are 
committed to operating within the boundaries 
of any necessary data security regulations 
to include the Data Protection Act. We are 
conversant with the requirements of both 
the GDPR and the Data Protection Bill and 
are constantly updating our Information 
Governance practices. 
2. Principles: F–I: Division of 
responsibilities
Ultimate responsibility for the management  
of the Group rests with the Board of Directors. 
Details of the Board are set out on pages 78  
to 79.
The Board focuses primarily upon strategic 
and policy issues and is responsible for:
	
– Leadership of the Group.
	
– Implementing and monitoring effective 
controls to assess and manage risk.
	
– Supporting the senior leadership team to 
formulate and execute the Group’s strategy.
	
– Monitoring the performance of the Group.
	
– Setting the Groups’ values and standards.
The Board consists of three independent 
Non-Executive Directors and four Executive 
Directors. The Board does not currently 
comply with provision 2.11 of the UK 
Corporate Governance Code and this  
is under review. 
Business review meetings are held monthly 
with attendance of Executive Directors at 
these meetings. These meetings provide the 
Executive Directors with a comprehensive 
understanding of the current performance 
of, and the key issues affecting, the Group’s 
operations. The Board also visits sites and have 
continued to do this virtually during COVID-19. 
At every board meeting the Board covers an 
AIM-continuing obligations questionnaire and 
declaration of connected party transactions. 
This sets the tone for corporate behaviour  
and helps makes governance meaningful  
and focused on improving the business  
and protecting shareholder value.
Matters reserved for the Board
The Board delegates certain of its 
responsibilities to Board committees, 
individual Directors or Executive management 
where appropriate. However, there are certain 
matters that are considered to be so important 
to the long-term success of the Group that 
they are reserved to the Board for specific 
consideration and decision including:
	
– Financial reporting and controls including 
statutory matters such as the approval of 
final and interim financial statements and 
dividend declarations.
	
– Board membership and other senior,  
key personnel, appointments.
	
– Review of corporate governance 
arrangements.
	
– Group strategy matters including the 
approval of annual budgets, acquisitions 
and disposals.
	
– Review of the processes for monitoring  
and evaluating risk and the effectiveness  
of the Group’s system of internal control 
and operational efficiency.
	
– Review and supervision of treasury and 
financial policies.
	
– Shareholder communications.
How do we manage our internal 
controls and risks?
The Board is ultimately responsible for the 
Group’s system of internal controls and 
for reviewing its effectiveness. The role of 
management is to implement Board policies 
on risk and control. The system of internal 
controls is designed to manage rather than 
eliminate the risk of failure of the achievement 
of business objectives. In pursuing these 
objectives, internal controls can only provide 
reasonable and not absolute assurance against 
material misstatement or loss.
The recent challenging business climate has 
resulted in a sustained focus on the approach 
to risk. The Directors consider robust risk 
management to be crucial to the Group’s 
success and give a high priority to ensuring 
that adequate systems are in place to evaluate 
and limit risk exposure. They have overseen 
the further development of processes and 
procedures for identifying, analysing and 
managing the significant risks faced by the 
Group. During the year the Board undertook 
an in-depth assessment of the emerging and 
principal risks facing the Group and specifically 
those that might threaten the delivery of  
its strategic business model. These risks 
have been discussed in the Strategic Report 
on page 68 to 71. Processes have been 
implemented during the year under review 
and up to the date of approval of this 
Annual Report and Financial Statements. 
The processes and procedures are regularly 
reviewed by the Board.
A process of control and hierarchical reporting 
provides for a documented and auditable 
trail of accountability. These procedures are 
relevant across all Group operations and they 
provide for successive assurances to be given 
at increasingly higher levels of management 
and, finally, to the Board.
How do we deal with conflicts of 
interest?
Following amendments to the Company’s 
Articles of Association in 2008 to reflect 
certain provisions of the Companies Act 2006 
relating to conflicts of interest that came 
into force on 1 October 2008, the Board will 
follow a specific procedure when deciding 
whether to authorise a conflict or potential 
conflict of interest. Firstly, only independent 
Directors (i.e. those that have no interest in 
the matter under consideration) will be able to 
take the relevant decision. Secondly, in taking 
the decision the Directors must act in a way 
they consider, in good faith, will be most likely 
to promote the Group’s success. In addition, 
the Directors will be able to impose limits or 
conditions when giving authorisation if they 
think this is appropriate. It remains the Board’s 
intention to report annually on the Group’s 
procedures for ensuring that the Board’s 
power of authorisation in respect of conflicts 
is operated effectively and that procedures 
have been followed.
80
81
CareTech Holdings PLC  /  Annual Report and Accounts 2021

GOVERNANCE
Detailed briefing papers containing financial 
and operational summaries and an agenda 
are provided to the Directors in advance of 
each Board, Committee or business review 
meeting. The Directors are able to seek 
further clarification and information on any 
matter from any other Director, the Company 
Secretary or any other employee of the Group 
whenever necessary.
The Company Secretary is responsible for 
advising and supporting the Group Executive 
Chairman and the Board on corporate 
governance matters as well as assisting the 
Group Executive Chairman in ensuring a 
smooth flow of information to enable effective 
decision-making. All Directors have access 
to the advice and services of the Company 
Secretary and, through him, have access to 
independent professional advice in respect 
of their duties, at the Group’s expense. The 
Company Secretary, supported by the Group 
Company secretariat, acts as secretary to 
the Board, the Audit Committee and the 
Remuneration Committee.
The Group provides its Directors and officers 
with the benefit of appropriate insurance, 
which is renewed annually.
The Directors’ biographies appear on pages 78 
to 79 and detail their experience and suitability 
for leading and managing the Group.
The roles and responsibilities of certain 
members of the Board and Company 
Secretary are explained and their respective 
responsibilities summarised below.
Group Executive Chairman
As Group Executive Chairman, Farouq Sheikh 
OBE leads the Board and is responsible for  
its effective running.
Farouq Sheikh OBE leads the Company's 
strategic development and takes a special 
responsibility in respect of acquisitions and 
investor relations.
The Non-Executive Directors are responsible 
for:
	
– Constructively challenging the Executive 
Directors and supporting the Group to 
develop its strategy.
	
– Satisfying themselves as to the integrity of 
the financial information and that there are 
effective systems of risk management and 
financial control.
	
– Chairing and/or serving on relevant 
Committees.
Senior Independent Non-Executive Director
	
– Acting as a sounding board for the Group 
Executive Chairman.
	
– Available to shareholders if they have 
concerns which cannot be resolved 
through the Group Executive Chairman  
or other executive management.
	
– Acting as an intermediary for the Directors 
where necessary.
Corporate governance framework and 
terms of reference 
The Board has an overarching corporate 
governance framework to ensure continued 
alignment of the Board and Committee 
members’ roles and division of responsibilities. 
Each member of the Board is provided with a 
copy of the Company’s corporate governance 
framework, which they review, discuss and 
update regularly. Each of the Committees  
have their own written terms of reference.  
The Company Secretary supports the 
Committees in updating these terms of 
reference in order to comply with the  
Code and other good corporate practice.
Farouq Sheikh OBE is responsible for:
	
– The effective running of the Board.
	
– Promoting high standards of Corporate 
Governance.
	
– Ensuring Board agendas take full account 
of relevant issues and Board members’ 
concerns.
	
– Ensuring the Directors receive accurate and 
timely information.
Farouq Sheikh OBE is the co-founder of 
the Group and is integral to its success and 
growth. Whilst, the Group Executive Chairman 
is not independent and therefore currently 
does not comply with provision 2.9, the Board 
believe Farouq Sheikh, as co-founder, provides 
effective leadership in directing the Group and 
facilitates a culture of openness and debate.
Group Chief Executive Officer
Haroon Sheikh is the Group CEO and 
accountable to the Board for the day-to-day 
running of the Group and management of  
the strategic plan.
Haroon Sheikh is responsible for the following:
	
– Executive leadership of the Group’s 
business on a day-to-day basis.
	
– Developing the overall commercial 
objectives, and proposing and developing 
the strategy in conjunction with the Board 
as a whole.
	
– Responsibility, together with the senior 
management team, for the execution  
of the strategy and implementation of 
Board decisions.
	
– Recommendations on senior appointments 
and development of the management 
team.
	
– Ensuring that the affairs of the Group are 
conducted with the highest standards of 
integrity, probity and corporate governance.
3. Principles: J–L: Composition, 
succession and evaluation
Matters are delegated to Board Committees, 
individual Directors or Executive management 
where appropriate. To date, given the stage of 
the Group’s development, it has been felt the 
functions of a Nominations Committee can 
be adequately fulfilled by deliberation of the 
full Board; this will nevertheless be kept under 
review (non-compliant with 3.17 and 3.23 
of the Corporate Governance Code 2018). 
When the need for additional Non-Executive 
Directors are identified, the Board appoints 
advisers to nominate experienced relevant 
and appropriate candidates. Currently Board 
members meet the candidates and come to  
a collective view on appointments.
Currently all Directors are required to submit 
themselves for re-election at least every 
three years (non-compliant with 3.18 of the 
Corporate Governance Code 2018) and 
new Directors are subject to election by 
shareholders at the first opportunity  
following their appointment.
Whilst the performance of each of the 
Directors is kept under review, no formal 
evaluation is currently conducted by the 
Group. The Board does not believe the 
requirement is commensurate with the size 
and nature of the business but is aware that 
this does not comply with the Code provision 
3.21–3.22 and will therefore keep under review.
CareTech is committed to developing a 
working environment and culture that 
promotes fairness and inclusivity. We launched 
our Equality, Diversity & Inclusion Programme 
with work now underway to embed this 
into practices and culture. We initiated the 
inaugural Staff Consultative Committee during 
this period with representation from across 
the organisation to focus on the staff voice 
and workforce matters with this engagement 
shaping our People Strategy.
Group Chief Financial Officer
Christopher Dickinson is accountable to the 
Board for all financial matters and responsible 
for:
	
– Preparation and integrity of financial 
information.
	
– Operating effective systems of risk 
management and control.
	
– Developing and implementing the  
financial strategy and policies.
Executive Director
Mike Adams OBE, Executive Director, is  
a champion of disability and the needs  
of disabled people; adding to the Board  
a wealth of knowledge around the sector  
with responsibility for policy and practice.  
In addition, Mike is CEO of Purple Zest  
Limited, a disability business wholly owned 
by the Group, which supports both disabled 
people and businesses.
Non-Executive Directors
Collectively, the Non-Executive Directors 
bring a valuable range of expertise and 
experience in assisting the Group to achieve 
its strategic aims and provide constructive 
challenge and strategic guidance. In the 
furtherance of their duties, all Directors are 
able to take independent professional advice 
at the expense of the Group and those 
newly-appointed are made aware of their 
responsibilities by the Company Secretary.  
The Board approves the appointment and 
removal of the Company Secretary.
The Non-Executive Directors comprise Jamie 
Cumming, Karl Monaghan and Professor 
Moira Livingston and are considered to be 
independent. Although Karl Monaghan has 
served on the Board for more than nine  
years, the Board are satisfied that there are  
no matters which affects the independence  
of his judgement and as such Karl continues  
to act independently.
The Board maintains regular focus on 
succession planning for both Board and 
senior leadership roles. During the year, 
the Board has considered the desired skills, 
personal attributes and experience that would 
be of benefit to the Board in future Non-
Executive Directors. A number of members 
of the Executive Committee have attended a 
number of Board meetings at which they have 
presented their respected strategies. We will 
continue to review our succession planning 
strategy to ensure the Board composition and 
that of the Group Executive team reflects and 
aligns with the needs of the business. 
4. Provisions M–O: Audit, risk and 
internal control
The Board has established an Audit 
Committee comprising Karl Monaghan 
(Chairman), Professor Moira Livingston and 
Jamie Cumming. The Group Chief Financial 
Officer and representatives of the external 
auditor attend meetings by invitation as 
required.
The Committee meets at least twice each 
year and receives reports from the Group’s 
management and external auditor relating 
to the annual and interim accounts and the 
accounting and internal control systems 
throughout the Group. The Committee has 
direct and unrestricted access to the external 
auditor and reviews all services being provided 
by them to evaluate their independence and 
objectivity, taking into consideration relevant 
professional and regulatory requirements in 
order to ensure that said independence and 
objectivity are not impaired by the provision 
of permissible, non-audit services. The 
Committee has carefully considered the level 
of non-audit services and has concluded that 
this does not impact on the independence of 
the auditors.
Corporate Governance Report continued
82
83
CareTech Holdings PLC  /  Annual Report and Accounts 2021

GOVERNANCE
The Board, as advised by the Audit Committee, 
is ultimately responsible for the Group’s risk 
management policy and system of internal 
controls and for reviewing its effectiveness. 
The role of management is to implement 
Board policies on risk management and 
control. The system of internal controls is 
designed to manage rather than eliminate the 
risk of failure of the achievement of business 
objectives. In pursuing these objectives, 
internal controls can only provide reasonable 
and not an absolute assurance against material 
misstatement or loss.
The Directors consider robust risk 
management to be crucial to the Group’s 
success and give a high priority to ensuring 
that adequate systems are in place to evaluate 
and limit risk exposure. They have overseen 
the further development of processes and 
procedures for identifying, analysing and 
managing the significant risks faced by the 
Group. Risks facing the Group are described 
on pages 68 to 71 in this report. These 
processes have been implemented during 
the year under review and up to the date of 
approval of this Annual Report and Financial 
Statements. The processes and procedures  
are regularly reviewed by the Board and the 
Audit Committee.
A process of control and hierarchical reporting 
provides for a documented and auditable 
trail of accountability. These procedures are 
relevant across all Group operations: they 
provide for successive assurances to be given 
at increasingly higher levels of management 
and, finally, to the Board.
The new General Data Protection Regulations 
have changed how the Group manages, 
protects and administers data. A team of 
Senior Managers are responsible for how 
data flows in and out, and where it is stored 
throughout the Group.
5. Provisions P–R: Remuneration
The composition and role of the 
Remuneration Committee is set out in the 
Remuneration Report on pages 92 to 94. 
Also detailed in that report are Directors’ 
remuneration, shareholdings and share 
options scheme information. 
The composition and role of the 
Remuneration Committee includes details  
of Directors’ remuneration, shareholdings  
and share options scheme information.  
A key Group strategy is to attract and retain 
talented and committed staff at every level 
of the organisation and the Remuneration 
Committee aims to foster remuneration 
philosophy, policies and procedures to  
achieve this.
The Group operates in a highly competitive 
environment. For the Group to continue to 
compete successfully, it is essential that the 
level of remuneration and benefits offered 
achieve the objectives of attracting, retaining, 
motivating and rewarding the necessary high 
calibre of individuals at all levels across the 
Group. In November 2020, AON Hewitt were 
commissioned to prepare a benchmarking 
report which has been used to provide 
a useful analysis of the market for each 
element of pay. The Group therefore sets 
out to provide competitive remuneration to 
all its employees, appropriate to the business 
environment in the market in which it 
operates. To achieve this, the remuneration 
package is based upon the following principles 
– total rewards should be set to provide a 
fair and attractive remuneration package – 
appropriate elements of the remuneration 
package should be designed to reinforce 
the link between performance and reward; 
and Executive Directors’ incentives should 
be aligned with the interests of shareholders. 
The remuneration strategy is designed to be 
in line with the Group’s fundamental values of 
fairness, competitiveness and to support the 
Group’s corporate strategy. A cohesive reward 
structure consistently applied and with links  
to corporate performance, is seen as critical  
in ensuring attainment of the Group’s  
strategic goals.
The processes used by the Board to review the 
effectiveness of the system of internal controls 
include the following:
	
– Annual budgets are prepared for each 
operating business. Monthly management 
reporting focuses on actual performance 
against these budgets for each operating 
business.
	
– Management reports and external audit 
reports on the system of internal controls 
and any material control weaknesses that 
are identified.
	
– The whistleblowing helpline is managed 
by a third-party provider, enabling staff to 
raise concerns they may have about issues 
of safety or wrongdoing, anonymously 
if necessary. All such concerns received 
through the helpline are sent to the Head  
of Compliance for review, and to ensure 
that they are appropriately investigated  
and concluded.
	
– Discussions with management including 
those on the actions taken on problem 
areas identified by the Board members  
or in the external audit reports.
	
– Policies and procedures for such matters 
as delegation of authorities, capital 
expenditure and treasury management  
as well as regular updates.
	
– Review of the adequacy of the level 
of experienced and professional staff 
throughout the Group and the expertise 
of individual staff members so that they 
are capable of carrying out their individual 
delegated responsibilities.
	
– Review of the external audit work plans.
	
– Audit Committee receive the audit report 
and discusses the impact in the meetings  
of the Board.
	
– Audit Committee review APMs to ensure 
it is easy for investors, analysts and other 
stakeholders to understand our business.
The Group therefore sets out to provide 
competitive remuneration to all its employees, 
appropriate to the business environment in  
the market in which it operates. To achieve 
this, the remuneration package is based  
upon the following principles:
	
– Total rewards should be set to provide a fair 
and attractive remuneration package.
	
– Appropriate elements of the remuneration 
package should be designed to reinforce 
the link between performance and reward.
	
– Executive Directors’ incentives should be 
aligned with the interests of shareholders.
The Remuneration Committee’s principal 
duties are to review the scale and structure  
of the remuneration and service contracts for 
Executive Directors and Senior Management 
and it also administers the Company’s share 
option schemes. The Committee takes 
into consideration ESG issues in relation 
to corporate performance, when setting 
the remuneration of Executive Directors 
and takes steps to ensure that the incentive 
structure for Senior Management does not 
raise ESG risks by inadvertently motivating 
irresponsible behaviour. The remuneration 
for Non-Executive Directors is set by the 
full Board on the recommendation of the 
Executive Directors. In line with the UK 
Corporate Governance Code, remuneration 
for Non-Executive Directors does not include 
share options or other performance-related 
elements.
Pensions for Executive Directors are based 
on their basic salary but pension contribution 
rates are not aligned with those available to 
the workforce.
By order of the Board
Farouq Sheikh OBE
Group Executive Chairman
6 December 2021
	
– Reports from management on significant 
matters are reviewed and challenged, and 
the impact on the financial statements  
and the statutory audit are considered.  
In the year, going concern and viability  
statement, impairment of assets and  
control assessment have been reviewed.
The Group continues to review its system of 
internal controls to ensure compliance with 
best practice and Code guidance, whilst also 
having regard to our size and the resources 
available. The external auditor obtained an 
understanding of our internal controls for  
the purposes of forming their audit opinion 
as set out on pages 102 to 113. No significant 
deficiencies in our internal controls were 
reported by our external auditor in the course 
of their external audit. The Committee, 
taking into account the current nature of 
the operations and the experience and skill 
of the management team, believes that 
management is able to discharge their duties 
in the management of the Group without the 
need for an internal Audit function. This matter 
will continue to be actively reviewed by the 
Committee. 
The Group has in place a whistleblowing 
policy which sets out the formal process by 
which an employee of the Group may, in 
confidence, raise concerns about possible 
improprieties in financial reporting or other 
matters. Any material whistleblowing matters 
in relation to financial reporting are on the 
Committee’s agenda. During the year, there 
were no major incidents for consideration.
Corporate Governance Report continued
84
85
CareTech Holdings PLC  /  Annual Report and Accounts 2021

GOVERNANCE
Care Quality and Governance Committee
Professor Moira Livingston 
Chair of the Care Quality and 
Governance Committee
Delivering the highest standards of education, 
support and care and striving to continually 
improve the outcomes for children, young 
people and adults is the golden thread linking 
the Board to our front-line services.
Ambition
Though COVID-19 has continued to impact 
on all of our activities, we remain committed 
to becoming the highest quality provider 
of care, education and therapeutic support 
across the UK and internationally. We provide 
services to over c.5,000 adults and children 
across over 550 locations. We work with 
the majority of commissioners in England, 
Scotland and Wales, and have begun to 
engage with international markets. We  
employ approximately 11,000 people. 
Our mission is to provide every service  
user with Extraordinary Days, Every Day.
Quality framework
Quality is assured through a 'three-line  
of defence' framework.
1st line – Our operational team
Each part of the Group has a clear operating 
model. Our Head of Children’s Services and 
Head of Adult Services each line manages 
a number of Managing Directors who each 
hold accountability and responsibility for the 
day-to-day performance of their portfolio of 
services. Each Managing Director leads a team 
of site managers, regional/locality managers 
and operations directors. Our approach is 
to embed quality throughout the Group’s 
operations and employ well-qualified and 
skilled professionals who operate within a 
quality framework.
2nd line – Quality monitoring 
and independent visiting
Our quality improvement team oversee 
our policies and procedures, performance 
KPIs, our Dynamic Line of Sight (‘DyLOS‘), 
improvement programme, data analysis and 
our independent visiting contract (delivered 
through the NYAS. Further we operate a 
programme of site visits by our Non-Executive 
members of our Care Quality and Governance 
Committee with the collective learning being 
fed back to operational practice.
3rd line – Compliance and regulation
Our experienced internal compliance and 
regulation team operates across all divisions, 
reporting to our Group Executive Director 
– Compliance. The team undertakes a 
programme of regular service inspections and 
thematic reviews, assessing against an internal 
quality assurance framework.
These three lines of defence form our quality 
framework which aims to ensure the Group 
operates to the highest professional standards. 
Strategic oversight of the quality of our 
services is provided by our independent Care 
Quality and Governance Committee. The 
Committee has oversight of all aspects of 
care, safety and service-user wellbeing.
Regulatory data and performance 
Whilst the majority of our Group’s 550+ 
services are located in England, we also have  
a strong presence within Scotland and Wales. 
As such we operate under a number of 
different regulators. 
We continue to work closely with our 
regulators and commissioners across England, 
Scotland and Wales. In addition to localised 
links with inspectors, we have held meetings 
with senior leaders from our two main 
regulators – CQC and Ofsted, to review the 
performance of our portfolio. In addition, 
during 2021 we have shared and discussed  
our approach to managing COVID-19.
“Quality is defined 
by the level of 
service we deliver 
and the outcomes 
we achieve for 
children, young 
people and adults 
and the Group  
as a whole.”
Our Adults Services and a small number of 
our Children’s Services residential and college 
portfolio are regulated by the CQC who 
assess the services against approved essential 
standards of quality and safety. The regulators 
test and publicly record whether services are 
compliant or non-compliant against those 
standards.
Adults Services in Wales are regulated under 
different national legislation and are not 
currently rated on any form of scale,  
though all are compliant.
The Foster Care services in England are 
regulated by Ofsted and 100% services are 
rated Good.
In Wales, the services are regulated by the 
Care Inspectorate Wales (‘CIW‘) and are  
not currently rated on any form of scale. 
The Care Inspectorate of Scotland who 
regulate both Adults and Children’s Services 
have the majority of the Group’s rated 
residential services as Excellent or Very Good 
for both the established services and the 
acquired services in Scotland.
Regulators in England, Scotland and Wales 
have worked to an amended regulatory 
programme from October 2020 to April 2021. 
There were few service inspections and a 
focus on remote/desk top assessments for 
most Adults and Children’s services.
From April 2021, a more regular programme 
of inspection was reinstated by CQC and 
Ofsted but with a continued focus on services 
that had not had external inspection during 
the previous year or services where there was 
information to indicate potential compliance 
concerns.
The CQC have introduced aspects of their 
new three-year strategy that sees a more 
flexible and agile approach to inspection  
and regulation. This will potentially see  
more frequent changes in service ratings.
CQC
We have 162 CQC-registered services, of 
which 159 have been graded. The statistics 
below show that we continue to operate 
above the national averages for the Adult 
social care sector. 
Over the last four years we have consistently 
operated above national average ratings for 
the Adult care sector. Whilst the impact of 
COVID-19 on our capacity to provide excellent 
services, cannot be over-stated, we continue 
to out-perform the national average with  
86% of services rated Good/Outstanding. 
Ofsted
The majority of our Children’s Services are 
regulated by Ofsted in England and these 
services are rated as Outstanding, Good, 
Requires Improvement or Inadequate.
We have 232 Ofsted registered services.  
Our Group’s blended position is 80% Good  
or Outstanding in line with national averages. 
Quality governance and strategy
The Care Quality and Governance Committee 
is chaired by Professor Moira Livingston and 
has continued to meet through 2020/21.  
The terms of reference and membership of 
the Committee were reviewed in the summer 
of 2021 to reflect changes at the Executive 
team and to recognise in particular the quality 
theme on Clinical Governance. Membership is 
now Karl Monaghan and Jamie Cumming as 
NEDs, and Amanda Sherlock, Group Executive 
Director – Compliance.
The purpose of the Committee is to lead the 
development of the Group’s quality strategy 
and be responsible for the strategic oversight 
and assurance of care standards across the 
Group. In particular, to hold the Executive 
to account for the governance, risk and 
assurance process in place to identify, mitigate 
and manage risk and to maintain and improve 
the quality and safety of Group services.
During 2020/21 the Committee met four 
times to provide oversight and assurance on 
the quality strategy, quality standards, safety 
and compliance of the Group on behalf of 
the Board. In addition to standard business, as 
with previous years the Committee has invited 
operational directors to attend and present 
on topics ranging from restraint reduction 
strategy, safeguarding deep dive and clinical 
governance strategy.
Throughout 2020/21 we continued to deliver 
upon our existing programme of quality 
improvement. Key achievements, set out  
by current workstreams are as follows:
Workstream 1: Child, young person and 
adult-centred outcomes
	
– Trained staff and continued the 
implementation of Mind of My Own (Voice 
of the Child) across every Children’s service.
	
– Trained staff across our Children’s specialist 
mental health services in our chosen 
outcome framework (‘CANS‘) and began 
the implementation.
Workstream 2: Improving quality standards, 
policies and procedures
	
– Implemented our corporate policy review 
cycle and reviewed key policies.
	
– Commenced an audit of our existing 
suite of policies with plans to identify key 
corporate policies that can operate across 
the whole of CareTech.
	
– Developed and maintained a suite of 
COVID-19 related policies to provide clear 
guidance throughout the pandemic.
86
87
CareTech Holdings PLC  /  Annual Report and Accounts 2021

GOVERNANCE
Workstream 7: Strong and robust site  
to Board governance
	
– New Clinical Governance Committee 
launched.
Our commitment to improving quality
Building on our existing quality framework 
programme, the three lines of defence 
framework, and recognising the evolving 
shape of our Group service portfolio, we have 
established five key quality and compliance 
themes to guide our priorities:
1.	 Review and re-set of our quality strategy 
and Group quality objectives
2.	Implementation of a Group-wide Clinical 
Governance Framework
3.	Review and development of our approach 
to corporate risk and Board assurance
4.	Becoming an open, just and learning 
organisation
5.	Improving our incident and safeguarding 
management
The five ‘themes’ enable a clear line of sight 
for the Board and Executive to monitor key 
quality projects and programmes that have 
the maximum impact on delivering our quality 
ambition.
The Group have invested further in both 
its internal compliance resource but also 
creating a new Executive role to drive quality 
improvement. Working with our operational 
teams, independent visitor programme for 
Children’s services and with regulators, we 
have moved to an approach to quality that 
goes ‘beyond ratings’ and puts personalisation 
and outcomes for individuals at the heart of 
our approach.
Workstream 3: Recruitment, retention and 
development of skilled professionals
	
– Implemented our new safer recruitment 
policy.
	
– Supervision process being integrated  
into our Myrus system.
Workstream 4: Quality monitoring and 
assurance
	
– Quality framework operating across our 
CQC and Children’s residential services.
	
– DyLOS operational across 75% of our 
portfolio with remaining sites going live 
before the end of 2021.
Workstream 5: Embedding a culture of 
continuous improvement
	
– Quality Improvement Plans (‘QIP‘) format 
refreshed and being implemented across  
all Children’s Services sites.
	
– Responsible Individual Forum has met three 
times across 2021 independently chaired 
with new RI competency framework 
launched.
	
– Safeguarding Boards operating across 
Education, Fostering and Children’s 
residential.
	
– New PMO function launched in Quality 
Improvement team.
Workstream 6: Management Information 
Systems (‘MIS‘) enabling data-informed 
practice and decision-making
	
– New MIS (Behaviour Watch) implemented 
across all CareTech schools with phase 1 
focusing upon incident management and 
safeguarding.
	
– MIS (Charms) implemented across our 
Fostering business.
	
– CareTech KPI preparation completed with 
launch expected before the end of 2021.
Our existing seven quality improvement 
workstreams will realign to these five priorities 
as we move forward and we will report on 
progress under these five headings going 
forward.
We are committed to this journey of 
improvement and our aspiration to become 
the highest quality provider in our sector. 
Professor Moira Livingston
Non-Executive Director
6 December 2021
Care Quality and Governance Committee continued
The Directors present their Report and the 
audited Group Financial Statements for the 
year ended 30 September 2021.
Principal activities
The principal activity of the Group is the 
provision of high-quality support and care for 
individuals who often have complex needs. 
Business review and future 
developments
The results for the financial year ended 
30 September 2021 are set out in the 
consolidated statement of comprehensive 
income detailed on pages 115 to 116. Revenue 
for the year amount to £489.1m, operating 
profit for the year before non-underlying items 
amounted to £80.5m and operating profit 
after non-underlying items amounted  
to £79.5m.
The information that fulfils the requirements 
of the business review, including details of 
the 2021 results, key performance indicators, 
principal risks and uncertainties and the 
outlook for future years, is set out in the 
Group Executive Chairman’s Statement 
(pages 14 to 17), the Group Chief Executive's 
Statement and Performance Review (pages 
20 to 25), the Strategic Report (pages 1 to 75) 
and the Group Financial Review (pages 72 
to 75) including Key Performance Indicators 
(pages 43 to 45) and Principal Risks and our 
Strategic Response (pages 68 to 71).
Key risks and uncertainties
There are a number of risks and uncertainties 
which could impact on the Group’s long-
term performance. These are set out in the 
Strategic Report on pages 68 to 71.
Employee engagement
Details in relation to employment policies, 
employee involvement, development, 
together with details of some of the human 
resource improvement initiatives implemented 
during the year and priorities for the year 
2021/22 are shown in the Strategic Report,  
all of which are incorporated by reference  
into this Directors’ Report.
Business relationships
Details of the Group’s commissioners, service 
users, regulators and suppliers, and how 
we engage with them are described in the 
Strategic Report, all of which are incorporate 
by reference into the Directors’ Report.
Environmental
The Group is committed to developing a 
business that is built on the foundations of 
responsibility. In 2021, we developed our new 
Responsibility Strategy – CARE4, which is set 
out on page 10.
Details of the Group’s Greenhouse gas 
emissions and the methodology used to 
calculate such emissions are set out on  
page 55 which is incorporated by reference 
into this Directors’ Report. 
Dividends
Dividends of £14.4m have been paid during 
the year. The Directors propose a final 
dividend of 9.5p per share (2020: 8.75p) 
subject to the approval at the forthcoming 
Annual General Meeting.
Share listing
The Group’s Ordinary Shares are admitted to 
and traded on AIM, a market operated by the 
London Stock Exchange. Further information 
regarding the Group’s share capital, including 
movements during the year, are set out in note 
26 to the financial statements.
Directors
The names of the current Directors together 
with brief biographical details are shown on 
pages 78 to 79.
In accordance with the Articles of Association, 
Jamie Cumming retires by rotation and, being 
eligible, will offer himself for re-election. 
The names of all Directors who held office  
in the year are as follows:
Director’s name
Title
Farouq Sheikh OBE
Group Executive Chairman
Haroon Sheikh 
Group Chief Executive Officer 
Christopher Dickinson Group Chief Financial Officer
Mike Adams OBE
Executive Director
Karl Monaghan
Non-Executive Director
Jamie Cumming
Non-Executive Director
Professor Moira 
Livingston 
Non-Executive Director
The terms of the Directors’ service contracts 
and details of the Directors’ interests in the 
shares of the Group, together with details of 
share options granted and any other awards 
made to the Directors, are disclosed in the 
Remuneration Report commencing on  
page 92.
Directors’ insurance
The Company maintains appropriate Directors’ 
and Officers’ liability insurance, as permitted 
by the Companies Act 2006.
Directors’ Report
88
89
CareTech Holdings PLC  /  Annual Report and Accounts 2021

GOVERNANCE
Employees
The Directors recognise the benefits which 
arise from keeping employees informed of the 
Group’s progress and plans and through their 
participation in the Group’s performance. The 
Group is therefore committed to providing its 
employees with information on a regular basis, 
to consulting with them on a regular basis 
so that their views and/or concerns may be 
taken into account in taking decisions which 
may affect their interests, and to encouraging 
their participation in schemes through which 
they will benefit from the Group’s progress 
and profitability. The Group aims to foster a 
working environment in which all employees 
are treated with courtesy and respect and 
seeks at all times to provide opportunities  
to develop and reach their full potential.
The Group established Sharesave share option 
schemes for eligible employees in both 2016, 
2017 and 2020, details of which can be found 
in note 25 along with options remaining on 
previous schemes. The Board feels that share 
ownership among employees fosters team 
spirit and motivation and will contribute to  
the ultimate success of the Group.
It is the Group’s policy to ensure that disabled 
persons are treated fairly and consistently 
in terms of recruitment, training, career 
development and promotion and that their 
employment opportunities should be based 
on a realistic assessment of their aptitudes 
and abilities. Wherever possible, the Group 
will continue the employment of persons who 
become disabled during the course of their 
employment through retraining, acquisition of 
special aids and/or equipment or the provision 
of suitable alternative employment.
Share capital
Substantial shareholdings
As at 6 December 2021, being the date of 
the preliminary results announcement, the 
Group had been notified of, or was otherwise 
aware of, the following substantial interests 
of 3% or more in the Ordinary Share capital 
of the Group, other than those in respect 
of the Directors which are set out in the 
Remuneration Report on page 99.
No. of 
Ordinary 
Shares of 
0.5p
Percentage 
%
Liontrust Asset Mgmt
16,786,870
14.8
Lombard Odier Asset Mgmt
13,031,755
11.5
Canaccord Genuity  
Wealth Mgmt 
11,500,268
10.2
Kempen Capital Mgmt
9,082,784
8.0
Mr Richard Griffiths
5,831,945
5.2
Capital structure
As at 30 September 2021, the Group had 
113,327,459 issued Ordinary Shares of  
0.05p each. The Company has, and as  
at 30 September 2021, had, one class of 
Ordinary Shares and each share carries the 
right to one vote at General Meetings of the 
Group and to participate in any dividends 
declared in accordance with the Articles  
of Association. No person has any special 
rights of control over the Group’s share 
capital. 
Financial instruments
The Group is exposed to a combination 
of price, credit, interest rate and cash flow 
risks. The Group uses financial instruments 
including cash, borrowings and interest rate 
swaps, the main purpose of which are to 
raise finance for the Group’s activities and 
to manage interest rate risks. Disclosures in 
respect of these instruments are set out in 
note 29 to the financial statements.
Authority to allot shares
Pursuant to resolutions approved at the 
Annual General Meeting on 9 March 2021 
the Directors were granted authority to allot 
shares with an aggregate nominal value of up 
to the value of one third of the share capital  
of the Group.
Resolutions for the renewal of the above 
will be proposed at the forthcoming Annual 
General Meeting and also a resolution to give 
the Directors authority to allot equity securities 
for cash to the holders of Ordinary Shares as 
the Directors may determine on the register 
on a fixed record date in proportion (as nearly 
as may be) to their respective shareholding 
or in accordance with the rights attached 
thereto. Further details of which, together with 
explanations of the resolutions to be proposed 
at the meeting, appear in the 'Notice of AGM 
and explanatory circular to shareholders' 
which will be sent to shareholders in good 
time prior to the meeting.
Post balance sheet events
On 19 November 2021, an interim dividend  
of 4.6p per share was paid to shareholders. 
On 29 November 2021, Smartbox Holdings 
Ltd (‘Smartbox’) announced the acquisition 
of REHAVISTA and its subsidiary company 
LogBUK. REHAVISTA is Germany’s largest 
provider of augmentative and alternative 
communication (‘AAC’) products and 
services. LogBUK is a subsidiary company to 
REHAVISTA, providing independent speech 
and language therapy to help AAC users 
achieve the best outcomes through specialist 
clinical support. Smartbox paid €10m in cash 
on completion, funded by the Group’s debt 
facility and post completion, CareTech will 
own 83% of Smartbox with the remaining 
minority ownership held by the Smartbox 
management team. 
Directors’ Report continued
Going concern
The Group’s business activities together 
with the factors likely to affect its future 
development, performance and position are 
set out in the Group Executive Chairman’s 
Statement, Group Chief Executive’s Statement 
and Performance Review on pages 14 to 17 
and pages 20 to 25 and Viability Statement on 
page 75. The financial position of the Group, 
its cash flows, liquidity position and borrowing 
facilities are described in the Group Financial 
Review on pages 74 to 75. In addition, note 
29 to the financial statements includes the 
Group’s objectives, policies and processes 
for managing its capital, its financial risk 
management objectives, details of its financial 
instruments and hedging activities and its 
exposures to credit risk, interest rate risk and 
liquidity risk. As highlighted in that note, the 
Group meets its day-to-day working capital 
requirements through cash flow from profits 
which together with existing bank facilities are 
sufficient to fund present commitments. Term 
facilities are utilised to fund capital expenditure 
and short-term flexibility is achieved by the 
utilisation of cash resources in respect of 
financial liabilities, which are shown in the 
table in note 29 and indicates their contractual 
cash flow maturities. 
The Group has banking facilities with a 
consortium of eight banks (Barclays Bank 
plc, HSBC UK Bank plc, Santander UK plc, 
AIB Group (UK) plc, Clydesdale Bank plc 
and Credit Suisse AG, Lloyds Bank plc and 
National Westminster Bank plc) for committed 
financing by way of term loans, none of 
which are repayable before August 2023. In 
addition to the term loans, a £25m revolving 
credit facility is available to provide working 
capital for the Group together with a day-
to-day overdraft facility of £2m. There are a 
number of Banking Covenants which ratchet 
depending on time and Group performance. 
The Directors forecast that they are able 
to meet all Banking Covenants, which are 
reviewed regularly.
The Group’s underlying operating business 
is cash generative, much of the business has 
a long-term profile with both debtor days 
and creditor days comparatively low. As at 
the balance sheet date, the Group had cash 
balances of £65.6m.
The Directors have prepared a cash flow 
forecast taking into account all expected cash 
flows for 12 months from the date of signing 
these financial statements. The Group has 
run downside scenarios including, but not 
limited to, a reduction in revenue, site closures 
and a cyberattack. This is done to identify 
risks to liquidity and covenant compliance. 
After making due enquiries and applying the 
downside sensitivities both individually and in 
combination, the Directors have not identified 
any material uncertainties to the Group and 
the Parent Company’s ability to continue to 
operate over a period of at least 12 months 
from the date of approval of the financial 
statements. Therefore the Directors consider 
it appropriate to adopt the going concern 
basis of accounting in preparing the financial 
statements.
Disclosure of information to auditor 
The Directors who held office at the date of 
approval of this Annual Report confirm that, so 
far as they are each aware, there is no relevant 
audit information of which the Company’s 
auditors are unaware; and each Director has 
taken all the steps that he or she ought to have 
taken as a Director to make himself or herself 
aware of any relevant audit information and 
to establish that the Company’s auditors are 
aware of that information.
Auditor
Grant Thornton UK LLP have expressed 
their willingness to continue in office and, 
in accordance with section 489 of the 
Companies Act 2006, a resolution for their 
reappointment will be proposed at the 
forthcoming Annual General Meeting.
By order of the Board
Farouq Sheikh OBE
Group Executive Chairman
6 December 2021
90
91
CareTech Holdings PLC  /  Annual Report and Accounts 2021

GOVERNANCE
Dear Shareholder, 
On behalf of the Board, I am pleased to 
present the Directors’ Remuneration Report 
for the year ended 30 September 2021 and the 
implementation of our remuneration policy 
for the year ended 30 September 2022. The 
Group is listed on the Alternative Investment 
Market (’AIM’) market of the London Stock 
Exchange and the information provided is 
disclosed to fulfil the requirements of AIM  
Rule 19. This report is split into two main parts: 
	
– this statement to shareholders which 
includes a summary of our approach to 
pay, our policy, remuneration outcomes for 
the year just ended and how we intend to 
operate remuneration arrangements for  
the year ahead; and
	
– the Annual Report on remuneration which 
provides more detail on the above, as well 
as setting out other remuneration-related 
disclosures.
The Remuneration Report was resoundingly 
approved by shareholders at the 2021 Annual 
General Meeting with 97.6% vote ‘For’ and 
I would like to thank shareholders for their 
continued support. 
Remuneration Committee 
The Remuneration Committee currently 
comprises three Non-Executive Directors, 
Jamie Cumming (Chair), Karl Monaghan  
and Professor Moira Livingston. The 
Committee met six times in 2021, and its  
main responsibilities are set out below. 
Main Committee responsibilities
	
– Review the scale and structure of the 
remuneration and service contracts  
for Executive Directors.
	
– Governing all share plans.
	
– Ensure that the incentive structure for 
senior management does not raise 
ESG risks by inadvertently motivating 
irresponsible behaviour.
	
– Review workforce remuneration and related 
policies and the alignment of incentives and 
rewards with culture.
	
– Approve the design and determine targets 
for Executive Directors’ and other senior 
executives’ incentive arrangements.
	
– Appoint remuneration consultants.
The Committee members have no personal 
financial interest, other than as shareholders, 
in the matters to be decided and all are 
considered to be independent Directors of 
the Group. They have no conflicts of interest 
arising from cross-directorships or from being 
involved in the day-to-day business of the 
Group. They do not participate in any bonus, 
share option or pension arrangements.
Business performance and  
incentive outcomes for 2021
CareTech has 16 years on the public markets 
and grown to over 550 services supporting 
close to 5,000 service users. The business has 
increased its range of services to offer a broad 
Care Pathway which was expanded during 
the year with the acquisition of Smartbox and 
the creation of a Digital Technology division. 
Continuing to be innovative and develop a 
range of Care Pathways will continue to help 
many of the adults, young people and children 
we support to live more independently. 
For the 2020/21 year, the Group’s performance 
has been strong and demonstrating 
considerable resilience. Trading performance 
was significantly ahead compared with the 
same period last year. As with all businesses, 
the Group was affected by the COVID-19 
pandemic and the Executive Directors have 
prioritised the safety and health of those we 
care for and our employees. Through their 
leadership and dedication of our staff, support 
teams and management, the Group has 
continued to provide excellent quality care.
Directors’ Remuneration Report 
Jamie Cumming 
Chairman of the  
Remuneration Committee
Number of meetings  
held during the year
6
Committee members  
and meeting attendance
Jamie Cumming (Chair) (6/6)
Karl Monaghan (6/6)
Professor Moira Livingston (6/6)
STATEMENT FROM THE CHAIRMAN  
OF THE REMUNERATION COMMITTEE
Annual bonus
The annual bonus scheme in which the 
Executive Directors participate is based on 
the achievement of pre-IFRS 16 adjusted 
underlying EBITDA, pre-IFRS 16 EPS and 
Quality performance. For 2020/21, the 
maximum bonus for the Group Executive 
Chairman and Group Chief Executive Officer 
was 100.0% of salary, 66.6% for the Group 
Chief Financial Officer and 50% for the 
Executive Director. In light of the performance 
of the Group in the financial year, as reflected 
in a significant increase in shareholder value, 
88.8% of the maximum bonus entitlement was 
achieved by the Group Executive Chairman, 
Group Chief Executive Officer and Group 
Chief Financial Officer. 
Long-Term Incentive Plan (’LTIP’)
In December 2020, the Remuneration 
Committee approved the implementation  
of a new Long-Term Incentive Plan. The LTIP 
replaces the Group's existing executive share 
option scheme and has been established with 
a view to encourage long-term value creation 
for the Group's shareholders and to align  
the interests of the Executive Directors and 
senior leadership team with shareholders.  
The Remuneration Committee believes that 
the implementation of the LTIP will also assist 
the Group in attracting and retaining high-
calibre individuals for the future.
Awards will normally vest on the third 
anniversary of the date of grant, subject to  
the satisfaction of any performance conditions 
and the grantee's continued service. Upon 
vesting, 50% of the Award shares are subject 
to a holding period of four years from the 
date of grant, with the remaining 50% of the 
Award shares subject to a holding period of 
five years from the date of grant, ensuring 
further alignment with shareholders. During 
the holding period, restrictions will apply to 
the sale or other disposal of the shares. Malus 
and clawback provisions are also in place to 
reduce or recover the awards in circumstances 
such as any material misstatement of the 
financial statements, or a serious breach  
of the Company's code of ethics.
The first LTIP award was granted to participants in December 2020. The LTIP awards were set 
at 150% of salary for the Group Executive Chairman, Chief Executive Officer and Group Chief 
Financial Officer and 75% for the Executive Director and subject to EPS growth over the  
three- year performance period. Further details are set out later on in this report. 
Remuneration decisions for 2022 
Salaries
The following table sets out salaries for Executive Directors for the year ended 30 September 
2021 and intended salaries effective for the year ending 30 September 2022. 
Executive Directors
Salary with  
effect from  
1 October 2020
Salary with  
effect from  
1 October 2021
Group Executive Chairman
Farouq Sheikh OBE
£400,000
£400,000 (+0%)
Group Chief Executive Officer 
Haroon Sheikh
£450,000
£450,000 (+0%) 
Group Chief Financial Officer
Christopher Dickinson
£300,000
£300,000 (+0%)
Executive Director
Mike Adams OBE
£125,000
£125,000 (+0%) 
Benefits
There will be no changes to benefits provided 
to the Executive Directors.
Relocation allowance
In order to grow and develop CareTech in 
the Gulf region, the Group Chief Executive 
Officer has relocated on a temporary basis 
to the United Arab Emirates. The Group 
Chief Executive Officer has retained all of his 
current responsibilities, with the international 
development of the business representing an 
expansion of his duties and responsibilities.  
A relocation allowance of £12,000 per month 
has been approved by the Remuneration 
Committee to cover his move and included 
visa and immigration support, flights, housing 
and education fees.
Annual bonus
The maximum bonus opportunity remains  
at 100% of salary for the Group Executive 
Chairman and Group Chief Executive 
Officer. The maximum bonus opportunity 
has increased to 100% for the Group Chief 
Financial Officer and remains at 50% for the 
Executive Director. 
The measures and weightings have been 
reviewed and the FY22 bonus will use the 
same mix of three measures as FY21, with a 
weighting of a third each on Underlying basic 
EPS, Underlying basic EBITDA and Quality. 
In line with our approach for the FY21 bonus, 
we will retrospectively set out the targets and 
performance achieved in next year’s Annual 
Report on Remuneration. 
LTIP
The maximum opportunity remains at 150% 
of salary for the Group Executive Chairman, 
Group Chief Executive Officer and Group 
Chief Financial Officer and 75% for the 
Executive Director. The measures have been 
reviewed and we believe earnings remain 
strongly aligned to our strategic priorities. 
Further information is set out later on in  
this report. 
92
93
CareTech Holdings PLC  /  Annual Report and Accounts 2021

GOVERNANCE
Directors’ Remuneration Report continued
STATEMENT FROM THE CHAIRMAN  
OF THE REMUNERATION COMMITTEE CONTINUED
2018 UK Corporate Governance Code
Our remuneration policy is designed to support an effective pay-for-performance culture which enables the Company to attract, retain  
and motivate Executive Directors who have the necessary experience and expertise to execute our strategy and deliver value to shareholders. 
The Company chooses to adopt best practice and the 2018 UK Corporate Governance Code on a comply or explain basis and below is an 
explanation of how the Committee has addressed the principles prescribed in Provision 40.
Principle
How the Committee has addressed the principle
Clarity and simplicity
The Committee ensures that remuneration arrangements are transparent, comprising 
a simple incentive structure that is commonplace in the market and best practice 
remuneration provisions.
Risk
The Committee promotes long-term sustainable performance through sufficiently stretched 
targets, whilst ensuring that the incentive structure does not encourage Executive Directors 
to take inappropriate risks.
Predictability
The ‘illustration of application of remuneration policy’ chart on page 96 indicates the 
potential values that may be earned through the remuneration arrangements.
Proportionality
The Committee believes how each element of remuneration links to the delivery of our 
strategy is set out in this report. 
Alignment to culture
The Committee believes that the incentive arrangements are consistent with the Group’s 
values:
Honesty and Transparency: The incentive arrangements are simple, transparent and in line 
with market practice.
Respect and Responsibility: The Committee has recourse to recover incentive payments  
in certain circumstances.
Creating Value: The incentives are aligned to shareholders for delivering exceptional 
performance.
Conclusion
We remain fully committed to continuing an open and transparent disclosure of our remuneration policy. We believe that the policy operated 
as intended in 2021 and we consider that the remuneration received by Executive Directors during the year was appropriate taking into account 
Group and personal performance. 
By order of the Board
Jamie Cumming
Chairman of the Remuneration Committee
6 December 2021
EXECUTIVE REMUNERATION AT A GLANCE 
This table summarises the approach to remuneration arrangements for Executive Directors for FY21 and intended operation for FY22.
Element of remuneration 
Year ended 30 September 2021
Year ending 30 September 2022
Salary
Exec Chair – £400,000 
Group CEO – £450,000
Chief Financial Officer – £300,000
Executive Director – £125,000 
Group Exec Chair – £400,000 (+0%) 
Group CEO – £450,000 (+0%)
Chief Financial Officer – £300,000 (+0%)
Executive Director – £125,000 (+0%)
Maximum discretionary 
bonus opportunity 
Group Exec Chair & Group CEO – 100% of salary payable in cash 
Group Financial Officer – 66% of salary payable in cash
Executive Director – 50% of salary payable in cash
Group Exec Chair & CEO – 100% of salary payable in cash 
Group Financial Officer – 100% of salary payable in cash
Executive Director – 50% of salary payable in cash
Bonus performance 
measures 
Three measures each with equal weighting: 
	
– Underlying basic EPS; Underlying EBITDA; and quality of regulatory reports
LTIP
Grants made in December 2020:
	
– Group Exec Chair, Group CEO, Group Chief Financial Officer –  
150% of salary 
	
– Executive Director – 75% of salary
Grants expected:
	
– Group Exec Chair, Group CEO, Group Chief Financial Officer –  
150% of salary 
	
– Executive Director – 75% of salary
LTIP performance 
measures
Underlying Basic Earnings per share (100%)
Pension  
arrangements
15% of salary pension contribution
(which can be taken as 13% of salary cash allowance)
15% of salary pension contribution
Directors’ service agreements 
All Executive Directors’ service contracts are subject to a 6 or 12 months’ notice (period) of termination on either side.
The Non-Executive Directors have each been appointed under contracts, which are subject to three months’ notice of termination  
on either side.
94
95
CareTech Holdings PLC  /  Annual Report and Accounts 2021

GOVERNANCE
EXECUTIVE REMUNERATION AT A GLANCE CONTINUED
Illustration of application of remuneration policy for 2021/22
The remuneration package for the Executive Directors is designed to provide an appropriate balance between fixed and variable performance-
related components. The Committee is satisfied that the composition and structure of the remuneration package is appropriate, clearly supports 
the Group’s strategic ambitions and does not incentivise inappropriate risk taking. This is reviewed on an annual basis. 
The chart below sets out illustrations of each Executive Director’s remuneration package, should they achieve minimum, on-target or maximum 
performance. A fourth scenario, which assumes 50% share price growth over the LTIP vesting period, is also included. The chart is for illustrative 
purposes only and actual outcomes may differ from those shown. In accordance with disclosure regulations, share awards have been shown  
at face value, with no dividend accrual or discount rate assumptions and share price growth modelled in the final scenarios only.
For the purposes of the above analysis, the following methodology has been used: 
Minimum performance
Fixed remuneration only
On-target performance
Fixed remuneration 
50% of maximum annual bonus is earned
50% of maximum LTIP vests
Maximum performance
Fixed remuneration 
100% of maximum annual bonus is earned
100% of maximum LTIP vests
Maximum performance  
+ 50% share price growth
As per the Maximum performance illustration, but also assumes for the  
purposes of the LTIP that share price increases by 50% over the vesting period 
Fixed remuneration comprises base salary as at 1 October 2021, benefits received and pension opportunity.
£2,500
£'000s
Group Executive Chairman – Farouq Sheikh OBE
£2,000
£1,500
£1,000
£500
£0
Minimum 
performance
On-target 
performance
Maximum 
performance
Minimum 
performance 
+ 50% share 
price growth
£2,500
£'000s
Group Chief Financial Officer – Christopher Dickinson
£2,000
£1,500
£1,000
£500
£0
Minimum 
performance
On-target 
performance
Maximum 
performance
Minimum 
performance 
+ 50% share 
price growth
£2,500
£'000s
Group Chief Executive Officer – Haroon Sheikh
£2,000
£1,500
£1,000
£500
£0
Minimum 
performance
On-target 
performance
Maximum 
performance
Minimum 
performance 
+ 50% share 
price growth
£500
£'000s
Executive Director – Mike Adams OBE
£400
£300
£200
£100
£0
Minimum 
performance
On-target 
performance
Maximum 
performance
Minimum 
performance 
+ 50% share 
price growth
Directors’ Remuneration Report continued
Salary & benefits
Cash bonus
LTIP
Share price appreciation
ANNUAL REPORT ON REMUNERATIONS 
Directors' remuneration (audited)
The table below reports a single figure of total remuneration for each of the Directors for the financial year ended 30 September 2021 and their 
comparative figures for the financial year ended 30 September 2020. 
 
Salary and fees
Benefits
Annual bonus
LTIP
Pension
Total
 
2021 
£0
2020 
£0
2021 
£0
2020 
£0
2021 
£0
2020 
£0
2021 
£0
2020 
£0
2021 
£0
2020 
£0
2021 
£0
2020 
£0
Executive Directors 
 
 
 
 
 
 
 
 
 
 
 
Farouq Sheikh OBE
400
400
37
22
356
367
0
0
52
44
845
833
Haroon Sheikh
450
450
207
58
400
413
0
0
59
50
1,116
971
Christopher Dickinson
300
198
26
10
178
91
0
0
39
26
543
325
Mike Adams OBE
125
125
10
8
56
57
0
0
0
–
191
190
 
Non-Executive Directors
 
Karl Monaghan
59
53
–
–
–
–
–
–
–
–
59
53
Professor Moira Livingston
51
45
–
–
–
–
–
–
–
–
51
45
Jamie Cumming
51
42
–
–
–
–
–
–
–
–
51
42
Total
1,436
1,371
280
101
989
928
0
0
150
126
2,855
2,527
Notes to the table: 
–	 Christopher Dickinson was appointed Group Chief Financial Officer on 13 January 2020. Remuneration details for Christopher Dickinson represent only those amounts 
in relation to his services as a Director on the Board. 
Benefits 
Benefits include car allowance (or company vehicle), vehicle expenses, healthcare insurance and relocation assistance. Relocation assistance 
with a value of £144,000 was provided to Haroon Sheikh in the year, to assist with his move to the Middle East, and included visa and 
immigration support, flights, housing and education fees.
Pension arrangements  
Executive Directors are offered a contribution of 15% of salary into a pension plan. 
£473
£973
£1,473
£1,773
£554
£1,117
£1,679
£2,017
100%
32%
50%
20%
30%
27%
41%
27%
33%
27%
40%
27%
22%
34%
17%
22%
34%
17%
49%
100%
31%
20%
£353
£728
£1,103
£1,328
£135
£244
£353
£400
100%
100%
32%
38%
27%
34%
48%
21%
27%
41%
22%
34%
17%
26%
31%
19%
27%
35%
31%
23%
12%
55%
96
97
CareTech Holdings PLC  /  Annual Report and Accounts 2021

GOVERNANCE
ANNUAL REPORT ON REMUNERATIONS CONTINUED
Annual bonus 
Annual bonus awards were made in respect of the year ended 30 September 2021. Christopher Dickinson and Mike Adams OBE were eligible 
for a maximum bonus opportunity of 66.6% and 50% of salary respectively. Farouq Sheikh OBE and Haroon Sheikh were eligible for a maximum 
bonus opportunity of 100% of salary. For the avoidance of doubt, Non-Executive Directors are not eligible to participate in any annual bonuses 
or share-based incentives at CareTech. 
The awards were structured by reference to performance against three performance measures and targets, all equally weighted. If an individual 
target is met, a third of the bonus award is payable. The following table sets out performance measures, weightings, targets and outcomes in 
respect of the bonus for the year ended 30 September 2021.
Performance measure
Weighting 
Target
Outcome
Group underlying EPS 
One third
50.2p (Pre IFRS 16)
50.4p (pre IFRS 16) resulting in one third payable
Group underlying EBITDA
One third
£93.2 (pre IFRS 16) 
£93.3m (Pre IFRS 16) resulting in one third payable
Quality
One third
See below
22.2% payable
Total 
88.8% of the maximum bonus opportunity available is payable 
In March 2020, Regulatory inspections were suspended due to the pandemic and only resumed part way during the year. The Remuneration 
Committee therefore measured the Quality performance hurdle based on three measures: vacant registered managers, Leadership and 
Management during COVID-19 (infection prevention and control) and Regulatory compliance. The Remuneration Committee used its 
discretion and determined that two out of these three measures had been met. 
Long-Term Incentive Plan (’LTIP’) 
2020 LTIP
In December 2020, the Remuneration Committee made awards to the Executive Directors (and other senior management) under the LTIP. 
Awards of 150% of salary were awarded to the Group Executive Chairman, Group Chief Executive Officer and Group Chief Financial Officer  
and 75% for the Executive Director and are subject to an EPS measured over a three-year period beginning at the date of the grant. 50% of the 
award will be subject to a one-year holding period and 50% will be subject to a two-year holding period. The performance conditions are set  
out below:
Underlying Basic EPS final year target
Vesting of element (% of maximum)
Less than 48.60p
0%
48.60p
20%
57.05p
100%
Between 50.71p and 57.05p
Between 20% and 100% on a straight-line basis
The awards to the Executive Directors were made on 20 December 2020 based on a share price of 487p:
Group Executive Chairman 	
123,203 shares
Group CEO	 	
	
	
138,604 shares
Group Chief Financial Officer	
92,402 shares
Executive Director	 	
	
19,251 shares
Malus and clawback provisions apply to the award for criteria such as any material misstatement of the financial statements, a serious breach  
of the Company's code of ethics.
Details of share options made in previous years are set out in the share options section below.
2021 LTIP
In line with the remuneration policy, the Group Executive Chairman, Group Chief Executive Officer and Group Chief Financial Officer will be 
granted awards of 150% of salary and the Executive Director will be granted an award of 75% of salary under the new Long-Term Incentive Plan 
in December 2021. The targets for the 2021 LTIP are disclosed below. The Committee considers the targets to be appropriately stretching taking 
into account internal and external forecasts and market conditions. 
Underlying Basic EPS final year target
Vesting of element (% of maximum)
<55.05p
0%
55.05p
20%
64.62p
100%
Between 55.05p and 64.62p
Between 20% and 100% on a straight-line basis
If underlying EPS at the end of the performance period is below 55.05p then no awards will vest. Furthermore, the Committee has discretion  
to amend the vesting outcome where it considers that it is not a fair and accurate reflection of business performance. 
ExSOP and Sharesave options
On 29 March 2017, the Group’s ExSOP was created. Farouq Sheikh OBE and Haroon Sheikh each own 320,000 Ordinary Shares (total 640,000 
Ordinary Shares) of 0.5p respectively under the Group’s Executive Shared Ownership Plan 2017 (see note 25) and 400,000 Ordinary Shares  
(total 800,000 Ordinary Shares) of 0.5p respectively under the Group’s Executive Shared Ownership Plan 2019. 
On 15 September 2020, the Group granted options in aggregate over 480,678 Ordinary Shares pursuant to the CareTech Holdings plc Sharesave 
Scheme 2020. This is a three-year contract with a start date of 1 November 2020, with options exercisable at a price of 355 pence per share 
between 1 November 2023 and 30 April 2024. Within the options described above, there were 5,070 options each granted to Farouq Sheikh OBE, 
Haroon Sheikh and Christopher Dickinson under the Sharesave Scheme.
Christopher Dickinson has an interest in 155,250 Ordinary Shares in CareTech pursuant to the Executive Shared Ownership Plan, details of  
which were announced on 8 November 2019.
None of the options above are subject to clawback arrangements
No other Director has any share options in the Group.
Non-Executive Director Fees 
The following sets out the current fee policy for Non-Executive Directors: 
	
– base fee of £52,500; and 
	
– additional fee of £7,500 for the role of Senior Independent Director. 
Directors’ interests
The Directors who held office at the end of the financial year had the following interests in the Ordinary Share capital of the Company according 
to the register of Directors’ interests:
30 September 2021 
Number of Ordinary 
0.5p Shares
30 September 2020 
Number of Ordinary 
0.5p Shares
Westminster Holdings Limited(1)
9,297,864
10,047,864
Cosaraf Pension Fund(2)
230,000
230,000
Sheikh Holdings Group(3)
2,642,145
2,579,145
Farouq Sheikh OBE
–
–
Haroon Sheikh
–
–
Karl Monaghan 
41,795
41,795
Jamie Cumming
2,500
2,500
Mike Adams OBE
2,145
2,145
Christopher Dickinson
–
–
Directors’ Remuneration Report continued
Notes to the table: 
(1)	Westminster Holdings Limited is a company owned by a trust, the beneficiaries 
of which include Farouq Sheikh OBE and Haroon Sheikh. 
(2)	Cosaraf Pension Fund is a self-administered scheme established for the benefit 
of Farouq Sheikh OBE and Haroon Sheikh.
(3)	Grosvenor UK Limited is beneficially interested in these shares via a Contract for 
Difference (’CFD’) which was effected at a price of 350p per share. Grosvenor 
UK Limited is a wholly owned subsidiary of Sheikh Holdings Group Investments 
Limited, which is wholly owned by Haroon and Farouq Sheikh OBE and their 
immediate family.
98
99
CareTech Holdings PLC  /  Annual Report and Accounts 2021

GOVERNANCE
Additional disclosures relating to CEO pay 
The following section sets out a number of additional disclosures relating to CEO pay, typically provided by FTSE-listed companies in their 
remuneration reports: 
	
– Percentage change in CEO remuneration.
	
– Historic CEO pay.
Percentage change in the Board’s remuneration 
The following table compares the percentage change in the CEO’s salary, benefits and annual bonus to the average percentage change in salary, 
benefits and bonus for all employees from the year ending 30 September 2020 to the year ending 30 September 2021.   
Change in remuneration
Salary
Benefits
Annual 
bonus
Chief Executive Officer
0%
267%
(3)%
Average pay of all employees 
3.3%
15%
228%
Historic CEO pay 
The following table sets out historic CEO pay over the past ten years. The single figure of total remuneration is provided, as well as the annual 
bonus expressed as a percentage of the maximum for the year. 
Year ending 30 September 
Chief Executive
Single figure of total 
remuneration 
£000
Annual 
bonus 
as a % of 
maximum
LTIP as 
a % of 
maximum
2021
Haroon Sheikh
1,116
89%
n/a 
2020
Haroon Sheikh
971
91%
n/a
2019
Haroon Sheikh
920
100%
n/a
2018
Haroon Sheikh
794
62%
n/a
2017
Haroon Sheikh
430
64%
n/a
2016
Haroon Sheikh
375
76%
n/a
2015
Haroon Sheikh
304
96%
n/a
2014
Haroon Sheikh
298
69%
n/a
2013
Haroon Sheikh
247
0%
n/a
2012
Haroon Sheikh
259
0%
n/a
Notes to the table: 
Single figure of total remuneration is as disclosed in previous Annual Reports, being the total figure in the  
relevant table plus any pension amounts disclosed in the same table. 
Directors’ Remuneration Report continued
ANNUAL REPORT ON REMUNERATIONS CONTINUED
The Directors are responsible for preparing the Annual Report and the financial statements in accordance 
with applicable law and regulations. 
Company law requires the Directors to prepare financial statements for each financial year. Under that 
law the Directors have to prepare the financial statements in accordance with international accounting 
standards in conformity with the requirements of the Companies Act 2006 (’IFRSs’). Under company law  
the Directors must not approve the financial statements unless they are satisfied that they give a true and 
fair view of the state of affairs and profit or loss of the Company and Group for that period. In preparing 
these financial statements, the Directors are required to:
	
– select suitable accounting policies and then apply them consistently;
	
– make judgements and accounting estimates that are reasonable and prudent;
	
– state whether applicable IFRSs have been followed, subject to any material departures disclosed and 
explained in the financial statements.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and 
explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position 
of the Company and enable them to ensure that the financial statements comply with the Companies 
Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking 
reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors confirm that:
	
– so far as each Director is aware, there is no relevant audit information of which the Company’s auditor  
is unaware; and 
	
– the Directors have taken all the steps that they ought to have taken as Directors in order to make 
themselves aware of any relevant audit information and to establish that the auditor is aware of that 
information.
The Directors are responsible for preparing the Annual Report in accordance with applicable law and 
regulations. Having taken advice from the Audit Committee, the Directors consider the Annual Report and 
Financial Statements, taken as a whole is fair, balanced and understandable and provides the information 
necessary for shareholders to assess the Group’s performance, business model and strategy. 
The Directors are responsible for the maintenance and integrity of the corporate and financial information 
included on the Company’s website. Legislation in the United Kingdom governing the preparation and 
dissemination of financial statements may differ from legislation in other jurisdictions.
By order of the Board 
Jamie Cumming
Chairman of the Remuneration Committee
6 December 2021
Statement of Director's Responsibilities 
100
101
CareTech Holdings PLC  /  Annual Report and Accounts 2021

Independent Auditor’s Report
to the members of CareTech Holdings PLC
Opinion
Our opinion on the financial statements is unmodified
We have audited the financial statements of CareTech Holdings PLC (‘the Parent Company’) and its subsidiaries (‘the Group’) for the year 
ended 30 September 2021, which comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, 
the Consolidated Balance Sheet, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash Flows, the 
Company Balance Sheet, the Company Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 
significant accounting policies. The financial reporting framework that has been applied in the preparation of the Group financial statements 
is applicable law and international accounting standards in conformity with the requirements of the Companies Act 2006. The financial 
reporting framework that has been applied in the preparation of the Parent Company financial statements is applicable law and United 
Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ applicable in the UK and 
Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion:
	
– the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 30 September 2021 
and of the Group’s profit for the year then ended;
	
– the Group financial statements have been properly prepared in accordance with international accounting standards in conformity with 
the requirements of the Companies Act 2006;
	
– the Parent Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted 
Accounting Practice; and
	
– the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under 
those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are 
independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial 
statements in the UK, including the FRC’s Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in 
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for  
our opinion.
Conclusions relating to going concern
We are responsible for concluding on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit 
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the 
Parent Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention 
in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our 
conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the Group 
or the Parent Company to cease to continue as a going concern.
Our evaluation of the Directors’ assessment of the Group’s and the Parent Company’s ability to continue to adopt the going concern basis of 
accounting included, but was not restricted to: 
	
– obtaining and reviewing management’s assessment of going concern and challenging the assumptions used in the cash flow forecasts,  
which have been approved by the Board; 
	
– obtaining management’s base case scenario for the period to 31 December 2022, together with supporting evidence for all key trading, 
working capital and cash flow assumptions;
	
– challenging the key assumptions in the forecasts and the scope of scenario planning undertaken. Assumptions challenged include growth 
rates in the underlying forecasts, operating cash conversation rate, progressive dividend policy, capital expenditure and the capital structure  
of the Group; 
	
– obtaining an understanding of the financing arrangements in place and management’s assessment of their adequacy and plans to manage 
these arrangements. Corroborating the arrangements by testing covenants compliance for these facilities;
	
– obtaining management’s downside scenarios, which reflect management’s assessment of uncertainties. The assumptions regarding the 
forecast period and reduced trading levels were evaluated for plausibility; and
	
– reviewing the policies and disclosures in respect of going concern given in the financial statements for appropriateness. 
In our evaluation of the Directors’ conclusions, we considered the inherent risks associated with the Group’s and the parent company’s 
business model including effects arising from macro-economic uncertainties such as Brexit and Covid-19, we assessed and challenged the 
reasonableness of estimates made by the Directors and the related disclosures and analysed how those risks might affect the Group’s and the 
Parent Company’s financial resources or ability to continue operations over the going concern period. 
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or 
collectively, may cast significant doubt on the Group’s and the Parent Company’s ability to continue as a going concern for a period of at least 
twelve months from when the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of  
the financial statements is appropriate. 
In relation to the Group’s reporting on how it has applied the UK Corporate Governance Code, we have nothing material to add or draw 
attention to in relation to the Directors’ statement in the financial statements about whether the Directors considered it appropriate to adopt  
the going concern basis of accounting.
The responsibilities of the Directors with respect to going concern are described in the ‘Responsibilities of Directors for the financial statements’ 
section of this report.
102
103
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Independent Auditor’s Report
to the members of CareTech Holdings PLC continued
Our approach to the audit
Overview of our audit approach
Overall materiality:
Group: £2.7m, which represents 5% of the Group’s normalised profit before tax, being profit before tax 
after adjustment for specific non-routine items, at the planning stage of the audit.
Parent Company: £1.7m, which represents 2% of the Parent Company’s total assets, capped at its 
component materiality.
Key audit matters were identified as:
	
– Occurrence of revenue and existence of deferred income (same as prior year);
	
– Valuation of goodwill of the Adult CGU (change in scope from the prior year: the prior year key audit 
matter was the valuation of goodwill and customer relationships across all the CGUs, whereas in the 
current year, the significant risk was in respect of the goodwill for the Adult CGU only); and
	
– Accuracy of acquisition accounting (change in scope from the prior year: the prior year key audit 
matter also included an assessment of identification of control of the acquisitions, which was not 
determined to be a significant risk this year and therefore not part of the key audit matter).
Our auditor’s report for the year ended 30 September 2020 included three key audit matters that have not 
been reported as key audit matters in our current year’s report, together with two key audit matters that 
have changed in scope:
	
– Measurement of lease assets and liabilities was a key audit matter in the previous year due to the 
transition to the new financial reporting standard IFRS 16 ‘Leases’;
	
– Valuation of non-current ‘sleep-in’ provisions is not a key audit matter this year as there has been  
a judgement from the court which has settled the matter and therefore there is no uncertainty;
	
– Going concern is not a key audit matter in the current year as the Group has not been adversely 
affected by COVID-19 and has strong cash flows;
	
– Valuation of goodwill and customer relationships has changed in scope from the prior year as only 
valuation of the goodwill allocated to the Adult CGU is considered to be a significant risk this year, 
as the headroom for the Adult CGU was determined to be sensitive to changes in key assumptions; 
and 
	
– Assessment of identification of control and accuracy of acquisition accounting is a change in 
the scope of the ‘Accuracy of acquisition accounting’ key audit matter for the current year as the 
assessment of identification of control is not considered to be a significant risk this year as there  
is no significant judgement around control of the businesses acquired.
	
– The Parent Company was identified as a significant component this year (‘Parent’) in line with  
the prior year assessment. The subsidiaries of the Parent Company, CareTech Holdings PLC,  
and Cambian Group Limited, which were identified as separate significant components in the 
previous year, have been aggregated into a single significant component this year (‘CareTech’).  
We performed full-scope audit procedures using component materiality on the financial 
information of both of these components and all the entities included therein. 
	
– By the Bridge Holdings Limited and its subsidiaries (‘By the Bridge’) has been identified as a 
significant component, similar to last year. The Group engagement team performed specific 
procedures on the financial information of By the Bridge using Group materiality to address  
risks identified at the Group level.
	
– Smartbox Holdings Limited and its subsidiaries (‘Smartbox’) were acquired in the current year. 
Smartbox was identified as a significant component and the Group engagement team performed 
specific procedures on its financial information using Group materiality to address risks identified 
at the Group level.
	
– AS Investment Holdings Limited and AS1 Investment Holdings Limited and their respective 
subsidiaries in the United Arab Emirates (the ‘AS Group’ or ‘UAE’) has been identified as a 
significant component this year. The Group engagement team engaged component auditors  
to perform specific procedures on the financial information of UAE using Group materiality  
to address risks identified at the Group level.
	
– Other non-significant components of the Group were subject to a combination of specified  
audit procedures and analytical procedures using Group materiality.
Key audit matters
Key audit matters are those matters that, in our professional judgement,  
were of most significance in our audit of the financial statements of the  
current period and include the most significant assessed risks of material  
misstatement (whether or not due to fraud) that we identified. These matters  
included those that had the greatest effect on: the overall audit strategy;  
the allocation of resources in the audit; and directing the efforts of the  
engagement team. These matters were addressed in the context of our  
audit of the financial statements as a whole, and in forming our opinion  
thereon, and we do not provide a separate opinion on these matters. 
In the graph below, we have presented the key audit matters, significant  
risks and other risks relevant to the audit.
Description
KAM
Disclosures
Audit response
Our results
High
Potential 
financial 
statement 
impact
Extent of management judgement
Low
Low
High
Occurence of  
revenue and existence 
of deferred income
Accuracy of 
acquisition 
accounting
Impairment  
of goodwill  
of Adult CGU
Intangibles
Deferred 
revenues
Share-based 
payments
Tangible 
assets
Segment 
analysis
Management  
override
Key audit matter
Significant risk
Other risk
Materiality
Scoping
Key audit matters
104
105
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Key Audit Matter – Group
How our scope addressed the matter – Group
Occurrence of revenue and existence of deferred income 
We identified occurrence of revenue and existence of deferred income 
as one of the most significant assessed risks of material misstatement 
due to fraud.
Under ISA (UK) 240 ‘The Auditor’s Responsibilities Relating to Fraud in 
an Audit of Financial Statements’, there is a rebuttable presumption that 
there are risks of fraud in revenue recognition. 
We have identified fraud risk relating to service users discharged for 
Adult/Supported services and Children revenue streams for the current 
year. We have identified the revenue associated with users who have 
been discharged in the year as susceptible to fraud risk because this is 
predominantly a manual process which requires adjustments to revenue 
billed, when notification of discharge of a service user is received.
We have focused the significant risk of occurrence in the Adult/
Supported services and Children revenue streams on revenue relating 
to service users discharged in the year. Due to the nature of the risk 
identified, this also results in a significant risk in respect of the existence 
of year-end deferred income balances. 
Fostering revenues, additional labour recharge revenues and revenues 
in the UAE are considered to have a significant risk of occurrence.
In responding to the key audit matter, we performed the following audit 
procedures:
considering the Group’s revenue recognition accounting policies to check 
these were in compliance with International Financial Reporting Standard 
(‘IFRS’) 15 ‘Revenue from Contracts with Customers’ and consistently 
applied across the Group;
performing walkthroughs to understand the key controls over material 
revenue streams and identify changes, if any, from prior year; 
evaluating and testing the design and operating effectiveness of key 
controls over the admission, discharges and fee movement during the 
year for the material revenue streams;
performing substantive testing on fostering and other smaller revenue 
streams in the significant components and on revenue in those smaller 
components, where we did not place reliance upon the operating 
effectiveness of controls;
agreeing a sample of revenue transactions to subsequent cash receipt and 
evidence of right to revenue recognition, to ensure that the service has 
been provided and accordingly the performance obligation is satisfied;
testing a sample of credit notes during the year and post year end  
to ensure they are recorded in the appropriate period; and 
testing the deferred income recognised at the end of the year and 
agreeing to supporting evidence, on a sample basis.
Relevant disclosures in the Annual Report and Accounts 2021
	
– Financial statements: Note 2(m), Revenue; and Note 4, Segmental 
Information.
Our results
Our audit testing did not identify any material misstatements in relation 
to the occurrence of revenue and existence of deferred income.
Valuation of goodwill of Adult CGU
We identified valuation of goodwill of the Adult CGU as one of the 
most significant assessed risks of material misstatement due to error.
The Group has goodwill, allocated to the Adult CGU, with a carrying 
value of £27.3m (2020: £27.9m), which have arisen as a result of 
acquisitions. 
Under IAS 36 ‘Impairment of Assets’, management is required to test 
the goodwill annually for impairment. Given the current economic 
climate, we believe impairment indicators also exist in relation to the 
other intangible assets.
Significant judgements in the determination of recoverable amount 
of an asset/CGU include the determination of the CGUs, the forecast 
growth rates and the applicable discount rates. IAS 36 requires that 
assets are not carried at more than their recoverable amount.
In responding to the key audit matter, we performed the following audit 
procedures:
	
– evaluating the Group’s accounting policy for consistency with IAS 
36 and considering whether the accounting policy has been applied 
accurately and consistently across the Group;
	
– testing the arithmetical accuracy and integrity of the models 
and underlying data used by management in their impairment 
assessment by checking the consistency of formulae used and 
agreeing the underlying forecasts to approved budgets; 
	
– challenging management’s identification of CGUs within the 
business for reasonableness;
	
– using our in-house valuation specialists as an auditor’s expert to 
assess (in respect of value-in-use assessments) the reasonableness 
of the discount rates and growth rates applied to cash flows;
	
– challenging management’s model in respect of unallocated costs 
and unallocated capital expenditure; 
	
– sensitivity analysis of key assumptions around working capital, 
allocation of central costs, growth rates and discount rates; and
	
– challenging management’s assumptions concerning forecast cash 
flows, based on historical trends and any changes in customer 
preferences and regulations.
Key Audit Matter – Group
How our scope addressed the matter – Group
Relevant disclosures in the Annual Report and Accounts 2021
	
– Financial statements: Note 2(i), Impairment (excluding deferred  
tax assets); Note 15, Intangibles.
Our results
Our audit testing did not identify any material misstatements in 
relation to the valuation of goodwill of Adult CGU. The assessment 
of potential impairment is highly sensitive to reasonable changes in 
the key assumptions and inputs. We have satisfied ourselves that the 
disclosures made are reasonable and consistent with the assessment 
performed.
Accuracy of acquisition accounting
We identified accuracy of acquisition accounting as one of the most 
significant assessed risks of material misstatement due to error.
The Group acquired controlling interests in the Smartbox and 
Huntercombe businesses.
There is significant judgement exercised in acquisition accounting under 
IFRS 3 ‘Business Combinations’, which presents a risk that a material 
error could occur in the accounting for this business combination, as 
well as judgements inherent in the fair value adjustments to recognise 
intangibles and the resulting impact on the goodwill amount.
In responding to the key audit matter, we performed the following  
audit procedures:
	
– assessing whether the Group’s accounting policy and disclosures 
relating to acquisition accounting is in compliance with IFRS 3 and 
consistently applied;
	
– inspecting documentation including the articles and memorandum 
of association and share purchase agreements to check that the 
Group controls the entities acquired and that the date of control was 
accurately recorded and reflective of when such control was achieved;
	
– evaluating the calculations and management’s judgements on the 
fair value of assets and liabilities acquired, including any identified 
intangibles arising on the acquisitions, in line with IFRS 3;
	
– engaging internal experts to assist with our audit of significant inputs 
to the fair valuation of assets identified as part of the acquisition;
	
– performing procedures over the source data used by the experts 
in their valuation to ensure the underlying forecasts and related 
assumptions were reasonable; and
	
– inspecting evidence to support the accuracy of the value of assets  
and liabilities on acquisition date.
Relevant disclosures in the Annual Report and Accounts 2021
	
– Financial statements: Note 2(r) and Note 5, Business combinations.
Our results
Our audit testing did not identify any material misstatements in relation 
to the accounting for acquisitions. 
We did not identify any key audit matters relating to the audit of the financial statements of the Parent Company.
Our application of materiality
We apply the concept of materiality both in planning and performing the audit, and in evaluating the effect of identified misstatements  
on the audit and of uncorrected misstatements, if any, on the financial statements and in forming the opinion in the auditor’s report.
Materiality was determined as follows:
Materiality measure
Group
Parent Company
Materiality for financial statements  
as a whole
We define materiality as the magnitude of misstatement in the financial statements that, 
individually or in the aggregate, could reasonably be expected to influence the economic 
decisions of the users of these financial statements. We use materiality in determining the 
nature, timing and extent of our audit work.
Materiality threshold
£2.7m, which is 5% of the Group’s normalised 
profit before tax, at the planning stage of the 
audit. Normalised profit before tax is after 
adjusting profit before tax for specific non-
routine items, including acquisition costs, 
integration costs, redundancy and site  
closure costs, and COVID-19 related costs.
£1.7m, which is 2% of the Parent Company’s 
total assets, capped at its component 
materiality, which is based on a percentage  
of Group materiality.
Independent Auditor’s Report
to the members of CareTech Holdings PLC continued
106
107
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Materiality measure
Group
Parent Company
Significant judgements made by auditor  
in determining materiality
In determining materiality, we made the 
following significant judgements: 
	
– Normalised profit before tax is considered 
the most appropriate benchmark for the 
Group because in our view, it is most 
reflective of the performance of the 
business.
Materiality for the current year is higher than 
the level that we determined for the year 
ended 30 September 2020 to reflect the 
increase in the Group’s normalised profit 
before tax this year.
In determining materiality, we made the 
following significant judgements: 
	
– Total assets is considered the most 
appropriate benchmark for the Parent 
Company because the Parent Company’s 
principal activity is that of a holding 
company that does not trade. 
Materiality for the current year is higher than 
the level that we determined for the year 
ended 30 September 2020 to reflect the 
increase in the Parent Company’s total assets 
and the capping, noted above, at a higher 
percentage of Group materiality, which was 
also higher this year.
Performance materiality used to drive the 
extent of our testing
We set performance materiality at an amount less than materiality for the financial statements as 
a whole to reduce to an appropriately low level the probability that the aggregate of uncorrected 
and undetected misstatements exceeds materiality for the financial statements as a whole.
Performance materiality threshold
£1.9m, which is 70% of financial statement 
materiality.
£1.2m, which is 70% of financial statement 
materiality.
Significant judgements made by auditor in 
determining performance materiality
In determining performance materiality, we 
made the following significant judgements:
	
– The number and magnitude of 
unadjusted misstatements made to the 
Group’s financial statements in prior 
years; and
	
– The nature and impact of significant 
control deficiencies identified in  
prior years.
In determining performance materiality, we 
made the following significant judgements: 
	
– The number and magnitude of 
unadjusted misstatements made to the 
Parent Company’s financial statements  
in prior years; and
	
– The nature and impact of significant 
control deficiencies identified in prior 
years.
Specific materiality
We determine specific materiality for one or more particular classes of transactions, account 
balances or disclosures for which misstatements of lesser amounts than materiality for the 
financial statements as a whole could reasonably be expected to influence the economic 
decisions of users taken on the basis of the financial statements.
Specific materiality
We determined a lower level of specific materiality for the following areas: 
	
– Directors’ remuneration; and 
	
– related-party transactions.
Communication of misstatements to the 
Audit Committee
We determine a threshold for reporting unadjusted differences to the Audit Committee.
Threshold for communication
£135,700 and misstatements below that 
threshold that, in our view, warrant reporting 
on qualitative grounds.
£86,200 and misstatements below that 
threshold that, in our view, warrant reporting 
on qualitative grounds.
FSM: Financial statements materiality (*Parent Company financial statement materiality was capped at its component materiality), PM: Performance materiality,  
TFPUM: Tolerance for potential uncorrected misstatements.
An overview of the scope of our audit
We performed a risk-based audit that requires an understanding of the Group’s and the Parent Company’s business, its environment and risk 
profile and in particular matters related to:
Understanding the Group, its components, and their environments, including Group-wide controls
	
– The engagement team obtained an understanding of the Group and its environment, including Group-wide controls, and assessed the risks 
of material misstatement at the Group level;
	
– Evaluating the design and implementation of controls over the financial reporting systems identified as part of our risk assessment. With 
respect to payroll and operating expenses, we evaluated the design of controls and their implementation in addition to performing substantive 
procedures. With respect to revenue recognition we evaluated the design and implementation of controls and tested their operating 
effectiveness in addition to performing substantive procedures; and
	
– Inspecting the processes management follow to prepare and report results. Management prepare and report on the results on a Group basis 
rather than on a company basis. The subsidiaries in the Group are all controlled by the Parent Company. The Parent Company provides a 
guarantee for all of the subsidiaries’ liabilities, apart from those stated in note 30 of the financial statements.
Identifying significant components and type of work performed on the identified components 
	
– Evaluation by the Group audit team of identified components to assess the significance of that component and to determine the planned 
audit response based on a measure of materiality, considering the relative size of each component as a percentage of total Group assets, 
liabilities, revenue and earnings before interest, tax, depreciation and amortisation (‘EBITDA’). If any of these benchmarks were individually 
more than 15% of the Group total, then that component was classified as ‘individually financially significant to the Group’ and an audit of the 
financial information of the component using component materiality (full-scope audit) was performed;
	
– Those components where the benchmark threshold was below 15% of the Group total but was considered to contain Group significant risks 
were classified as significant components on which specific procedures to address Group risks were performed using Group materiality;
Independent Auditor’s Report
to the members of CareTech Holdings PLC continued
Overall materiality – Group
The graph below illustrates how performance materiality interacts with our overall materiality and the tolerance for potential uncorrected 
misstatements.
Normalised profit before tax – £54.2m
Total assets – £579.7m
PM £1.9m (70%)
PM £1.2m (70%)
TFPUM £0.8m (30%)
TFPUM £0.5m (30%)
FSM – £2.7m (5%)
FSM* – £1.7m (2%)
Overall materiality – Parent Company
108
109
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

An overview of the scope of our audit continued
Identifying significant components and type of work performed on the identified components continued
	
– The Parent and CareTech components were each categorised as significant components for which we performed full scope audit procedures 
using component materiality on all entities included in the respective components; 
	
– By the Bridge, UAE (or the ‘AS Group’) and Smartbox components were each classified as significant components because they are likely to 
contain Group significant risks. For UAE, we engaged component auditors to perform specific procedures on the financial information of 
those entities, addressing the risks identified at the Group level using Group materiality. The Group engagement team performed specific 
procedures on the financial information for the By the Bridge and Smartbox components to address risks identified at the Group level using 
Group materiality; and
	
– For other smaller non-significant components, we performed a combination of specified audit procedures and analytical procedures using 
Group materiality.
Performance of our audit
	
– The audit was conducted partly remotely due to COVID-19 restrictions and social distancing requirements and partly at the Group’s head 
office. The work performed was supported through the use of software collaboration platforms for the secure and timely delivery of 
requested audit evidence. The audit team held weekly pre-scheduled conference calls throughout the audit fieldwork and visited the  
head office frequently once restrictions were lifted in August 2021.
Audit approach
No. of 
components
% coverage  
Total assets
% coverage 
Revenue
% coverage PBT
Full-scope audit
2
90
85
82
Specific-scope audit
3
–
11
15
Specified audit procedures
1
–
1
3
Analytical procedures
1
–
–
–
Total
7
90
97
100
Communications with component auditors
	
– Communications with the UAE component auditor included sending our component auditor instructions to them detailing the areas required 
to be covered and the procedures to be performed; 
	
– As UAE was a significant component, we identified that specific procedures would be performed on significant balances and transactions. 
Accordingly, we identified such balances and specified the nature, timing and extent of procedures which are required to be performed on  
the identified areas. The work to be performed included obtaining an understanding of the design of controls and the processes followed  
and then identifying items for testing; and
	
– As a result of COVID-19, we were unable to undertake our component auditor fieldwork visits, therefore, we increased the frequency of our 
communications with the UAE component auditor to monitor progress. The audit team held periodic pre-scheduled video conference calls 
throughout the audit fieldwork to monitor progress and we also used video conferencing tools and audit software platform to review the 
component auditor documentation.
Changes in approach from previous period
	
– The acquisition of controlling interests in Smartbox and Huntercombe during the year caused a change in scope of the audit. We assessed the 
accounting treatment for the acquisition and certain assets acquired as part of the acquisition as significant risks of misstatement. Smartbox 
and Huntercombe were collectively identified as significant components as they are likely to contain Group significant risks. Therefore, they 
were subject to specified procedures to address specific risks using Group materiality; and
	
– The CareTech and Cambian components were individually identified as significant components in the previous year. However, in the current 
year, the Group engagement team has identified these as a single aggregated component to better reflect the business operations and the 
way they are managed and controlled;
Other information
The Directors are responsible for the other information. The other information comprises the information included in the Annual Report and 
Accounts, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other 
information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether 
the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to 
be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 
there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have 
performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 
We have nothing to report in this regard.
Our opinion on other matters prescribed by the Companies Act 2006 is unmodified
In our opinion, based on the work undertaken in the course of the audit:
	
– the information given in the Strategic Report and the Directors’ Report for the financial year for which the financial statements are prepared  
is consistent with the financial statements; and
	
– the Strategic Report and the Directors’ Report have been prepared in accordance with applicable legal requirements.
Matter on which we are required to report under the Companies Act 2006
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, 
we have not identified material misstatements in the Strategic Report or the Directors’ Report.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if,  
in our opinion:
	
– adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from 
branches not visited by us; or
	
– the Parent Company financial statements are not in agreement with the accounting records and returns; or
	
– certain disclosures of Directors’ remuneration specified by law are not made; or
	
– we have not received all the information and explanations we require for our audit. 
Corporate Governance Report
We have reviewed the Directors’ statement in relation to going concern, longer-term viability and that part of the Corporate Governance Report 
relating to the Group’s voluntary compliance with the provisions of the UK Corporate Governance Code.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance 
Report is materially consistent with the financial statements and our knowledge obtained during the audit:
	
– the Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material uncertainties 
identified set out on page 119;
	
– the Directors’ explanation as to their assessment of the Group’s prospects, the period this assessment covers and why the period is 
appropriate set out on page 119;
	
– the Directors’ statement on whether they have a reasonable expectation that the Group will be able to continue in operation and meet its 
liabilities set out on page 119; 
Independent Auditor’s Report
to the members of CareTech Holdings PLC continued
110
111
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Corporate Governance Report continued
	
– the Directors’ statement on fair, balanced and understandable set out on page 101; 
	
– the Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 89; 
	
– the section of the Annual Report that describes the review of the effectiveness of risk management and internal control systems set out  
on page 83; and
	
– the section describing the work of the Audit Committee set out on page 77. 
Responsibilities of Directors for the financial statements
As explained more fully in the Statement of Directors’ Responsibilities, the Directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary  
to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s and the Parent Company’s ability to continue as a 
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors 
either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, 
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but  
is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements 
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the 
economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: 
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, 
outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there  
is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned 
and performed in accordance with ISAs (UK). 
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below: 
	
– We enquired of management, the finance team and the Board of Directors about the Group’s and the Parent Company’s policies and 
procedures relating to the identification, evaluation and compliance with laws and regulations and the detection and response to the risks  
of fraud and the establishment of internal controls to mitigate risks related to fraud or non-compliance with laws and regulations;
	
– We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and the Parent Company. We 
determined that the most significant laws and regulations are those related to financial reporting and taxation, being international accounting 
standards in conformity with the requirements of the Companies Act 2006 (for ‘the Group’), Financial Reporting Standard 101 ‘Reduced 
Disclosure Framework’ (for the Parent Company), the Companies Act 2006, the Listing Rules, the UK Corporate Governance Code and  
the application of local sales and use taxes and overseas permanent establishments;
	
– We enquired of management and the Board of Directors whether they were aware of any instances of non-compliance with laws and 
regulations and whether they had any knowledge of actual, suspected or alleged fraud;
	
– We assessed the susceptibility of the Group’s and the Parent Company’s financial statements to material misstatement, including how  
fraud might occur and the risk of management override of controls. Audit procedures performed by the engagement team included;
	
– Enquiring of management, the finance team and the Board of Directors about the risks of fraud at the Group and the Parent Company 
and the controls implemented to address those risks. Assessing the design and implementation of controls relevant to the audit that 
management has in place to prevent and detect fraud, including updating our understanding of the internal controls over journal entries, 
including those related to the posting of entries used to record non-recurring, unusual transactions or other non-routine adjustments;
	
– Making specific inquiries of each member of the finance team to ascertain whether they had been subject to undue pressure or had  
been asked to make any unusual postings or modifications to reports used in financial reporting;
	
– Identifying and testing journal entries, with selection based on risk profiling;
	
– Running specific keyword searches (including to related parties and of those previously connected to related entities) over the journal entry 
population to identify descriptions that could indicate fraudulent activity or management override of controls. In addition, journal entries 
by user were evaluated to identify types of entries posted that were not in line with expectations of their role. Unusual entries noted from 
these searches were agreed to supporting documentation to verify the validity of the posting;
	
– Planning specific procedures responding to the risk of fraudulent recognition of revenue as detailed within the Key Audit Matters section, 
above;
	
– Assessing the disclosures within the Annual Report, including principal and emerging risks; and
	
– Challenging assumptions and judgements made by management in its significant accounting estimates. 
	
– In assessing the potential risks of material misstatement, we obtained an understanding of the Group’s and the Parent Company’s operations, 
including the nature of income sources and of their objectives and strategies in order to understand the classes of transactions, account 
balances, expected financial statement disclosures and business risks that may result in risks of material misstatement;
	
– These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of 
not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities 
that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate 
concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from  
events and transactions reflected in the financial statements, the less likely we would become aware of it;
	
– The engagement partner’s assessment of the appropriateness of the collective competence and capabilities of the engagement team 
included consideration of the engagement team’s understanding of, and practical experience with, audit engagements of a similar nature  
and complexity, through appropriate training and participation; and
	
– Requesting component auditors to identify any instances of non-compliance with applicable laws and regulations which could give rise to a 
material misstatement. Communications with the component auditor included specific procedures to be performed to address the fraud risk 
in revenue recognition and management override of controls around journal testing, including the procedures detailed above.
Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit 
work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s 
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 
Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Rebecca Eagle
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP 
Statutory Auditor, Chartered Accountants 
London 
6 December 2021
Independent Auditor’s Report
to the members of CareTech Holdings PLC continued
112
113
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Consolidated Income Statement
for the year ended 30 September 2021
Consolidated Statement of Comprehensive Income
for the year ended 30 September 2021
Note
2021
2020
Underlying 
£000
Non-
underlying 
£000
Total 
£000
Underlying 
£000
Non-
underlying 
£000
Total 
£000
Revenue
4
489,119
–
489,119
429,966
–
429,966
Cost of sales
(323,410)
–
(323,410)
(282,029)
–
(282,029)
Gross profit
165,709
–
165,709
147,937
–
147,937
Other income
6
–
2,692
2,692
–
2,550
2,550
Administrative expenses
(85,216)
(3,681)
(88,897)
(74,356)
(22,769)
(97,125)
Operating profit
80,493
(989)
79,504
73,581
(20,219)
53,362
EBITDA
100,485
2,692
103,177
90,932
2,550
93,482
Depreciation
13,14
(19,519)
–
(19,519)
(17,021)
–
(17,021)
Amortisation of intangible assets
6,15
–
(10,273)
(10,273)
–
(10,186)
(10,186)
Acquisition expenses
6
–
(759)
(759)
–
(545)
(545)
Other non-underlying items
6
–
(5,964)
(5,964)
–
(4,497)
(4,497) 
Sleep-in provision
6
–
11,777
11,777
–
–
–
Gain on bargain purchase
6
–
5,758
5,758
–
–
–
COVID-19 costs
6
–
(4,220)
(4,220)
–
(3,422)
(3,422)
Share-based payments’ charge
(473)
–
(473)
(330)
(4,119)
(4,449)
Operating profit
80,493
(989)
79,504
73,581
(20,219)
53,362
Finance expenses
6,9
(12,158)
(1,112)
(13,270)
(13,928)
(1,611)
(15,539)
Profit before tax 
68,335
(2,101)
66,234
59,653
(21,830)
37,823
Taxation
6,10
(11,889)
(19,017)
(30,906)
(11,325)
553
(10,772)
Profit for the year
56,446
(21,118)
35,328
48,328
(21,277)
27,051
Non-controlling interest
(3,420)
–
(3,420)
(1,933)
–
(1,933)
Profit for the year attributable to  
equity shareholders of the Parent
53,026
(21,118)
31,908
46,395
(21,277)
25,118
Earnings per share
Basic
11,12
28.80p
22.88p
Diluted
11,12
27.48p
22.03p
Note
2021
2020
Underlying 
£000 
Non-
underlying 
£000
Total 
£000
Underlying 
£000
Non-
underlying 
£000
Total 
£000
Profit for the year
56,446
(21,118)
35,328
48,328
(21,277)
27,051
Item that may be subsequently reclassified to the 
income statement:
Exchange movements on overseas net assets
(424)
–
(424)
53
–
53
Items that will not be reclassified to income statement:
Exchange movements on overseas net assets of  
non-controlling interests
(320)
–
(320)
45
–
45
Other comprehensive income for the year
(744)
–
(744)
98
–
98
Total comprehensive income for the year
55,702
(21,118)
34,584
48,426
(21,277)
27,149
Non-controlling interest
(3,100)
–
(3,100)
(1,978)
–
(1,978)
Profit for the year attributable to owners of the Parent
52,602
(21,118)
31,484
46,448
(21,277)
25,171
114
115
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Consolidated Statement of Financial Position
as at 30 September 2021
Consolidated Statement of Changes in Equity
as at 30 September 2021
Note
2021  
£000
2020 
£000
Non-current assets
Property, plant and equipment
13
619,482
604,096
Right-of-use assets
14
123,231
87,790
Intangible assets
15
87,032
83,084
Goodwill
15
86,866
84,604
916,611
859,574
Current assets
Inventories
16
3,468
1,937
Trade and other receivables
17
71,606
51,055
Cash and cash equivalents
18
65,560
54,273
140,634
107,265
Total assets
1,057,245
966,839
Current liabilities
Trade and other payables
21
70,011
55,017
Lease liabilities
14
5,500
6,208
Contingent consideration payable
5
3,616
1,569
Deferred income
19
36,132
30,309
Corporation tax
17,753
14,757
133,012
107,860
Non-current liabilities
Loans and borrowings
20
319,654
318,955
Lease liabilities
14
118,781
82,480
Deferred tax liabilities
22
93,927
69,844
Provisions
23
5,540
21,286
Derivative financial instruments
24
5,414
2,198
543,316
494,763
Total liabilities
676,328
602,623
Net assets
380,917
364,216
Equity 
Share capital
26
566
565
Share premium
27
133,551
133,079
Shares held by Executive Shared Ownership Plan
27
(12,837)
(13,305)
Merger reserve
27
125,842
125,842
Foreign currency translation reserve
27
(371)
53
Retained earnings
27
121,619
107,120
Total equity attributable to equity shareholders of the Parent
368,370
353,354
Non-controlling interest
27
12,547
10,862
Total equity
380,917
364,216
These financial statements were approved by the Board of Directors and authorised for issue on 6 December 2021 and were  
signed on its behalf by:
Farouq Sheikh OBE		
	
	
Christopher Dickinson
Group Executive Chairman	
	
Group Chief Financial Officer 
Company number: 04457287
Share 
capital 
£000
Share 
premium 
£000
Shares held 
by Executive 
Shared 
Ownership 
Plan 
£000
Retained 
earnings 
£000
Merger 
reserve 
£000
Foreign 
currency 
translation 
reserve 
£000
Total 
attributable 
to owners of 
the Parent 
£000
Non-
controlling 
interest 
£000
Total equity 
£000
At 1 October 2019
545
121,304
(3,537)
90,559
125,536
–
334,407
957
335,364
Profit for the year
–
–
–
25,118
–
–
25,118
1,933
27,051
Other comprehensive income
–
–
–
–
–
53
53
45
98
Total comprehensive income
–
–
–
25,118
–
53
25,171
1,978
27,149
Issue of ordinary shares net  
of transaction costs
18
10,043
(9,997)
–
–
–
64
–
64
Redemption of share options
–
–
229
–
–
–
229
–
229
Acquisition
2
1,732
–
–
306
–
2,040
7,927
9,967
Equity-settled share-based 
payments’ charge
–
–
–
4,449
–
–
4,449
–
4,449
Dividends
–
–
–
(13,006)
–
–
(13,006)
–
(13,006)
Transactions with owners 
recorded directly in equity
20
11,775
(9,768)
16,561
306
53
18,947
9,905
28,852
At 30 September 2020
565
133,079
(13,305)
107,120
125,842
53
353,354
10,862
364,216
Profit for the year
–
–
–
31,908
–
–
31,908
3,420
35,328
Other comprehensive income
–
–
–
–
–
(424)
(424)
(320)
(744)
Total comprehensive income
–
–
–
31,908
–
(424)
31,484
3,100
34,584
Issue of ordinary shares  
net of transaction costs
1
472
–
–
–
–
473
–
473
Redemption of share options
–
–
468
–
–
–
468
–
468
Acquisitions (Note 5a)
–
–
–
–
–
–
–
1,450
1,450
Equity-settled share-based 
payments’ charge
–
–
–
1,373
–
–
1,373
–
1,373
Dividends
–
–
–
(14,431)
–
–
(14,431)
(2,865)
(17,296)
Recognition of liabilities with 
non-controlling interest (Note 24)
–
–
–
(4,351)
–
–
(4,351)
–
(4,351)
Transactions with owners 
recorded directly in equity
1
472
468
14,499
–
(424)
15,016
1,685
16,701
At 30 September 2021
566
133,551
(12,837)
121,619
125,842
(371)
368,370
12,547
380,917
116
117
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Consolidated Statement of Cash Flows
for the year ended 30 September 2021
Notes to the Financial Statements
Note
2021 
£000
2020 
£000
Cash flows from operating activities
Profit before tax
66,234
37,823
Adjustments for:
Financial expenses
9
13,270
15,539
Depreciation
13,14
19,519
17,021
Amortisation of intangible assets
15
10,273
10,186
Sleep-in provision
6
(11,777)
–
Gain on bargain purchase
6
(5,758)
–
Share-based payments’ charge
8,25
1,373
4,449
Other non-cash items
6
587
–
Operating cash flows before movement in working capital
93,721
85,018
Increase in inventory 
(651)
(46)
(Increase)/decrease in trade and other receivables
(15,953)
5,565
Increase/(decrease) in trade and other payables
12,715
(2,227)
Cash inflows from operating activities
89,832
88,310
Tax paid
(6,038)
(3,899)
Net cash from operating activities
83,794
84,411
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
1,299
1,536
Business combinations net of cash acquired
5
(5,447)
(2,000)
Acquisition of property, plant and equipment
13
(28,993)
(23,842)
Acquisition of software
15
(2,938)
(2,840)
Payment of contingent consideration
(1,503)
(739)
Net cash used in investing activities
(37,582)
(27,885)
Cash flows from financing activities
Proceeds from issue of shares net of transaction costs
26
941
294
Proceeds from shareholder loans
5
–
1,808
Interest paid
(10,599)
(10,737)
Cash outflow arising from non-underlying finance expenses
(1,756)
(1,053)
Loan arrangement fees
(438)
–
Principal payment of lease liabilities
(5,777)
(8,797)
Dividends paid to non-controlling interest
(2,865)
–
Dividends paid 
28
(14,431)
(13,006)
Net cash used in from financing activities
(34,925)
(31,491)
Net increase in cash and cash equivalents
11,287
25,035
Cash and cash equivalents at 1 October
18
54,273
29,238
Cash and cash equivalents at 30 September
18
65,560
54,273
1. Background and basis of preparation
CareTech Holdings PLC (the ‘Group’ or ‘Company’) is a company registered and domiciled in England and Wales. The consolidated financial 
statements of the Company for the year ended 30 September 2021 comprise the Company and its subsidiaries (together referred to as the 
‘Group’). The consolidated financial statements are presented in pounds sterling, which is the Company’s functional currency, rounded to the 
nearest thousand. The Parent Company financial statements on pages 165 to 172 present information about the Company as a separate entity 
and not about its Group. 
The consolidated financial statements were approved for release by the Board of Directors on 6 December 2021.
Going concern
The Group’s business activities together with the factors likely to affect its future development, performance and position are set out in the 
Group Executive Chairman’s Statement and Group Chief Executive’s Statement and Performance Review on pages 14 to 17 and pages 20 to 
25. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are described in the Group Financial Review on 
pages 72 to 75. The Directors have assessed the viability of the Group in the Longer-term Viability Statement set out on page 75. In addition, 
note 29 to the financial statements includes the Group’s objectives, policies and processes for managing its capital, its financial risk management 
objectives, details of its financial instruments and hedging activities and its exposures to credit risk, interest rate risk and liquidity risk. As 
highlighted in that note, the Group meets its day-to-day working capital requirements through cash flow from profits which together with 
existing bank facilities are sufficient to fund present commitments. Term facilities are utilised to fund capital expenditure and short-term  
flexibility is achieved by the utilisation of cash resources in respect of financial liabilities, which are shown in the table in note 29 and indicates 
their contractual cash flow maturities.
The Group is financed by bank loan facilities that mature in August 2023. The Directors have considered the Group’s forecasts and projections, 
and the risks associated with their delivery, and are satisfied that the Group will be able to operate within the covenants imposed by bank loan 
facilities for at least 12 months from the date of approval of the consolidated financial information. In relation to available cash resources, the 
Directors have had regard to both cash at bank and a £25m committed undrawn revolving credit facility.
The Directors have prepared a cash flow forecast taking into account all expected cash flows for 12 months from the date of signing these 
financial statements. After making due enquiries, the Directors have a reasonable expectation that the Group has adequate resources to  
continue on operational existence for the foreseeable future. 
Accordingly, the Directors continue to adopt the going concern basis of accounting for the Group and Parent Company in preparing the 
consolidated financial statements.
2. Accounting policies
(a) Applicable accounting standards
The Group financial statements have been prepared and approved by the Directors in accordance with international accounting standards  
in conformity with the requirements of the Companies Act 2006.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these Group  
financial statements.
118
119
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
2. Accounting policies continued
New and amended standards and interpretations effective in the year
Issued IFRS not yet effective
At the date of authorisation of these financial statements, certain new standards, amendments and interpretations to existing standards have 
been published by the IASB but are not yet effective and these have not been applied early by the Group. Management anticipates that the 
following pronouncements relevant to the Group’s operation will be adopted in the Group’s accounting policies for the first period beginning 
after the effective date of the pronouncement, once adopted by the EU:
Title
Subject
Effective date per standard
Amendment to IFRS 16 ‘Leases’ COVID-19 – Related Rent  
Concessions beyond 30 June 2021
COVID-19 – Related Rent Concessions
1 April 2021 per IASB
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
Interest Rate Benchmark Reform – Phase 2
1 January 2021 per IASB
IFRS 17
Insurance Contracts
1 January 2023 per IASB 
Amendments to IFRS 10 and IAS 28 (Sept 2014)
Sale or Contribution of Assets between an  
Investor and its Associate or Joint Venture
Postponed
The Directors expect that the adoption of the standards listed above will not have a material impact on the financial information of the Group  
in future reporting periods. 
(b) Measurement convention
The financial statements are prepared on the historical cost basis except that derivative financial instruments are stated at their fair value and 
contingent consideration is stated at fair value through profit or loss.
(c) Basis of consolidation
The Group financial statements consolidate those of the Parent Company and all of its subsidiaries as of 30 September 2021. All subsidiaries 
have a reporting date of 30 September, except for AS Investment Holdings Ltd, AS1 Investment Holdings Ltd, AS2 Investments Holdings Ltd, and 
their respective operating entities in the United Arab Emirates (UAE) (the ‘AS Group’), which has a year end of 31 December as this their statutory 
reporting date. All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses 
on transactions between Group companies. Where unrealised losses on intra-group asset sales are reversed on consolidation, the underlying 
asset is also tested for impairment from a Group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted 
where necessary to ensure consistency with the accounting policies adopted by the Group. Subsidiaries are only consolidated where control 
exists. Control is determined to exist when the Group has power over the investee, exposure, or rights, to variable returns from its involvement 
with the investee and the ability to use its power over the investee to affect the amount of the investor’s returns.
(d) Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost 
of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use and 
capitalised borrowing costs. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that 
equipment.
The cost of replacing an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future 
economic benefits embodied within the component will flow to the Group, and its cost can be measured reliably. The carrying amount of the 
replaced component is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in the profit or  
loss as incurred.
Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property,  
plant and equipment and depreciated separately.
2. Accounting policies continued
Depreciation is charged to the consolidated income statement over the estimated useful lives of each part of an item of property, plant and 
equipment. Land is not depreciated. The Directors reassess the residual value estimates, particularly in respect of properties, on an annual basis. 
The estimated useful lives are as follows:
	
– freehold buildings	
2% straight-line to residual value;
	
– long leasehold property	
over the life of the lease;
	
– short leasehold property	
over the life of the lease;
	
– fixtures, fittings and equipment	
15% straight-line; and
	
– motor vehicles	
25% reducing balance.
(e) Intangible assets and goodwill
All business combinations are accounted for by applying the acquisition method as described in note 2(r). Goodwill represents the excess of 
the fair value of the consideration over the fair value of the assets, liabilities and contingent liabilities acquired on acquisition of subsidiaries. 
Identifiable intangibles are those which can be sold separately or which arise from legal rights regardless of whether those rights are separable.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units and is not amortised but  
is tested annually for impairment.
Negative goodwill (bargain purchase credit) arising on an acquisition is recognised immediately in the consolidated income statement.
Other intangible assets that are acquired by the Group are stated at cost less accumulated amortisation and impairment losses.
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
Included within software are development costs in relation to software which are capitalised when the related projects meet the recognition 
criteria of an internally generated intangible asset, the key criteria being as follows:
(a)	 technical feasibility of completing the intangible asset so that it will be available for use or sale;
(b)	 it can be demonstrated that the asset will generate probable future economic benefits;
(c)	 adequate technical, financial and other resources are available to complete the development;
(d)	 the expenditure attributable to the intangible asset can be reliably measured; and
(e)	 management has the ability and intention to use or sell the asset.
These projects are designed to enhance the existing software within the Group. Salaries associated with development time and directly 
attributable overheads are capitalised within intangible assets.
Development costs recognised as assets are amortised on a straight-line basis over their expected useful life. Development expenditure is only 
amortised over the period the Group is expected to benefit and is subject to annual impairment testing.
The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate 
being accounted for on a prospective basis.
Amortisation is charged to the consolidated income statement on a straight-line basis over the estimated useful lives of intangible assets unless 
such lives are indefinite. The estimated useful lives are as follows:
	
– customer relationships	
1–20 years; and
	
– software and licences	
5 years.
120
121
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
2. Accounting policies continued
(f) Inventories
Inventories are valued at the lower of cost and net realisable value. The cost of inventories is based on a first-in first-out cost basis.
(g) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less from inception.
(h) Financial instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument. 
Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price in 
accordance with IFRS 15, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable). Financial liabilities 
are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the Group designated a financial liability at fair 
value through profit or loss. Subsequent measurement of financial assets and financial liabilities are described below.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and  
all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.
Classification and subsequent measurement of financial assets
For the purpose of subsequent measurement, financial assets are classified into the following categories upon initial recognition:
	
– Financial assets at amortised cost.
	
– Financial assets/liabilities held at fair value through profit or loss (‘FVTPL’).
FVTPL assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair values of financial assets in this 
category are determined by reference to active market transactions or using a valuation technique where no active market exists.
All income and expenses relating to financial assets that are recognised in the consolidated income statement are presented within finance costs 
or finance income, except for impairment of trade receivables which is presented within other administrative expenses.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVTPL):
	
– they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows; and
	
– the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal  
amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect 
of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this category of financial 
instruments.
2. Accounting policies continued
Financial assets at FVTPL
Financial assets that are held within a different business model other than ‘hold to collect’ or ‘hold to collect and sell’ are categorised at fair value 
through profit and loss. Further, irrespective of business model financial assets whose contractual cash flows are not solely payments of principal 
and interest are accounted for at FVTPL. All derivative financial instruments fall into this category.
Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair values of financial assets in this 
category are determined by reference to active market transactions or using a valuation technique where no active market exists.
Classification and subsequent measurement of financial liabilities
The Group’s financial liabilities include borrowings, trade and other payables and derivative financial instruments. Financial liabilities are measured 
subsequently at amortised cost using the effective interest method, except for financial liabilities held for trading or designated at FVTPL, that are 
carried subsequently at fair value with gains or losses recognised in the consolidated income statement. All derivative financial instruments that 
are not designated and effective as hedging instruments are accounted for at FVTPL.
All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in consolidated income statement are 
included within finance costs or finance income.
From time to time, the long-term debt held by the Group are either refinanced as these come to maturity, or the margin on these facilities moves 
in line with the ratio of the Group’s net debt to adjusted EBITDA. In either scenario, the Group reviews whether the debt is accounted for as a 
modification or an extinguishment of the liability. A substantial modification should be accounted for as an extinguishment of the existing liability 
and the recognition of a new liability. A non-substantial modification should be accounted for as an adjustment to the existing liability. Both the 
quantitative and qualitative aspects of the modification are taken into account to ascertain whether the modification is substantial and these can 
include the change in covenants, repayment dates and the effective interest rate. If modification accounting is adopted, the carrying value of the 
existing liability is adjusted for fees paid or costs incurred and the effective interest rate is amended at the modification date. If extinguishment 
accounting is adopted, the existing liability is de-recognised and the new or modified liability is recognised at its fair value, the gain or loss 
equal to the difference between the carrying value of the old liability and the fair value of the new one is recognised, any incremental costs or 
fees incurred and any consideration paid or received is recognised in profit or loss and a new effective interest rate for the modified liability is 
calculated and used in future periods.
Derivative financial instruments
From time to time, the Group enters into derivative financial instruments, such as interest rate swaps, to manage its exposure to interest rate risk. 
Derivatives are initially recognised at fair value at the date a derivative is entered into and are subsequently remeasured to their fair value at 
each balance sheet date. A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative fair value 
is recognised as a financial liability. The resulting gain or loss is recognised in the consolidated income statement immediately. A derivative is 
presented as a non-current asset or non-current liability if the Group has an unconditional right to defer payment beyond 12 months.  
Otherwise derivatives are presented as current assets or liabilities.
Trade receivables and contract assets
The Group applies the IFRS 9 simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance for all trade 
receivables and contract assets.
Trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due in order to measure 
expected credit losses. Contract assets related to unbilled work in progress have substantially the same risk characteristics as trade receivables 
for the same type of contracts. The Group has therefore concluded that the expected loss rates for trade receivables are a reasonable 
approximation of the loss rates for contract assets.
122
123
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
2. Accounting policies continued
Trade receivables and contract assets continued
The expected loss rates are based on the payment profiles of sales over a period of 48 months and before 30 September 2020 and 30 
September 2021 respectively as well as the correspondingly historical credit losses during that period. The historical rates are adjusted to reflect 
current and forward-looking macroeconomic factors affecting the customer’s ability to settle the amount outstanding. Expected credit losses 
are calculated in accordance with the simplified approach permitted by IFRS 9, using a provision matrix applying lifetime historical credit loss 
experience to the trade receivables. The expected credit loss rate varies depending on whether, and the extent to which, settlement of the trade 
receivables is overdue and it is also adjusted as appropriate to reflect current economic conditions and estimates of future conditions. For the 
purpose of determining credit loss rates, customers are classified into groupings that have similar loss patterns. The key driver of the loss rate is 
the type of customer. The vast majority of the Group’s customers are state-owned entities such as local authorities. As such, credit loss is not 
expected to increase significantly since initial recognition.
(i) Impairment (excluding deferred tax assets)
The carrying amounts of the Group’s assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. 
If any such indication exists, the asset’s recoverable amount is estimated.
For goodwill and assets that have an indefinite useful life, the recoverable amount is estimated at each balance sheet date. For goodwill and 
assets which are not amortised or depreciated, the recoverable amount is estimated at each balance sheet date.
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. 
Impairment losses are recognised in the consolidated income statement.
Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to 
cash-generating units and then to reduce the carrying amount of the other assets in the unit on a pro rata basis. A cash-generating unit is the 
smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups  
of assets.
Calculation of recoverable amount
The recoverable amount of other assets is the greater of their fair value less costs to sell and value in use. In assessing value in use, the estimated 
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value 
of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is 
determined for the cash-generating unit to which the asset belongs. This includes right-of-use assets, which cannot be operated independently.
Reversals of impairment
An impairment loss is reversed if the subsequent increase in recoverable amount can be related objectively to an event occurring after the 
impairment loss was recognised. 
Any impairment loss in respect of goodwill is not reversed.
In respect of other assets, an impairment loss is reversed when there is an indication that the impairment loss may no longer exist or there has 
been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s 
carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment 
loss had been recognised.
2. Accounting policies continued
(j) Interest-bearing borrowings
Interest-bearing borrowings are recognised initially at fair value less directly attributable transaction costs. Subsequent to initial recognition, 
interest-bearing borrowings are stated at amortised cost with any difference between proceeds (net of transaction costs) and the redemption 
value being recognised in the consolidated income statement over the period of the borrowings on an effective interest basis.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months 
after the reporting date.
Interest on qualifying assets is capitalised in accordance with IAS 23 borrowing costs. Refer to note 9.
(k) Employee benefits
Defined contribution plans
Obligations for contributions to defined contribution pension plans are recognised as an expense in the consolidated income statement  
as incurred.
Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A provision 
is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or 
constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
Share-based payment transactions
The grant date fair value of options granted to employees is recognised as an employee expense, with a corresponding increase in equity, over 
the period in which the employees become unconditionally entitled to the options. The fair value of the options granted is measured using an 
option valuation model (Black-Scholes valuation model), taking into account the terms and conditions upon which the options were granted. 
The amount recognised on exercise as an expense is adjusted to take into account an estimate of the number of shares that are expected to vest 
as well as to reflect the actual number of share options that vest, except where forfeiture is due only to share prices not achieving the threshold 
for vesting. Options lapsed are expunged from the relevant scheme.
Employee Benefit Trust
The assets and liabilities of the Employee Benefit Trust (‘EBT’) have been included in the consolidated financial statements. Any assets held by the 
EBT cease to be recognised on the consolidated balance sheet when the assets vest unconditionally in identified beneficiaries. 
The costs of purchasing own shares held by the EBT are shown as a deduction against equity. The proceeds from the sale of own shares held 
increased equity. Neither the purchase nor sale of own shares leads to a gain or loss being recognised in the consolidated income statement. 
(l) Provisions
A provision, other than provisions for deferred taxation, is recognised in the balance sheet where a reliable estimate can be made when the 
Group has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be 
required to settle the obligation. If the effect is material, provisions are determined by discounting the expected, risk adjusted, and future cash 
flows at a pre-tax risk-free rate.
124
125
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
2. Accounting policies continued
(m) Revenue
IFRS 15 provides a single, principles-based approach to the recognition of revenue from all contracts with customers. It focuses on the 
identification of performance obligations in a contract and requires revenue to be recognised either at a point in time or over time, when  
(or as) the Group satisfies performance obligations by transferring the promised goods or services to its customers.
Revenue arises mainly from the provision of care and educational services to vulnerable adults and children, fostering and the sale of hardware 
and software.
Income which has been invoiced but irrecoverable is treated as a bad debt expense. Revenue invoiced in advance is included in deferred revenue 
until the service is provided. Revenue is recognised net of VAT and credit notes.
Care services
Revenue from the sale of care services provided to vulnerable adults and children is recognised as the services are provided. Care services 
are consumed as soon as they are provided and performance obligations are satisfied when services are rendered to the client. There are no 
significant financing components and invoice payment terms are typically 30 days.
Our contracts provide that the Group is entitled to consideration based on the amount of care services delivered (for example number of days’ 
worth of care delivered in the period) and an agreed rate. On this basis, the Group have applied the practical expedient set out in IFRS 15 para 
121. There are no significant judgements used in the recognition of revenue.
Revenue in respect of the provision of care services is measured as the fair value of fee income received or receivable in respect of the services 
provided and is recognised in respect of the care that has been provided in the relevant period. Any additional services provided by the Group 
are recognised as the services are provided.
Educational services
Revenue in respect of educational services is recognised when the young person is in school, over the academic year, as this is when the service 
user is receiving the educational services.
Consideration is determined by the contractually agreed amount for each placement with payment for each term typically received in advance.
Fostering services
For Foster Care, the Group is acting as a principal as contracts are between the Group and local authorities and separately between the Group 
and foster carers with a number of performance conditions attached to each.
Foster Care revenue is recognised on the basis of the daily placements made with a full day’s revenue recognised for every night a placement  
is with a foster carer at an agreed rate.
Hardware and software
Revenue from the sale of hardware and software for a fixed fee is recognised when or as the Group transfers control of the assets to the 
customer. Invoices for goods or services transferred are due upon receipt by the customer, payment terms are typically 30 days. Control 
transfers at the point in time the customer takes undisputed delivery of the goods.
The Group provides a one- or two-year manufacturer’s warranty (extended by our suppliers) on hardware products. Communication devices 
manufactured by Smartbox are sold with a Smart Care extended warranty. Under the terms of the warranty customers can return the product 
for repair or replacement if it fails to perform in accordance with published specifications. These warranties are accounted for under IAS 37.
The Group sells monthly software subscriptions and perpetual licences. For stand-alone sales of software that are neither customised by the 
Group nor subject to significant integration services, control transfers at the point in time the customer takes undisputed delivery of the goods. 
For sales of software that are neither customised by the Group nor subject to significant integration services, the licence period commences 
upon delivery.
2. Accounting policies continued
Contract assets and liabilities/accrued and deferred income 
The Group recognises contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these amounts 
as deferred income in the balance sheet (see note 19). An example of this is where the Group will invoice in advance for education services.  
This is held in deferred income until the service has been provided. 
Similarly the Group recognises a contract asset when a contract has been agreed with a customer and a service user has been admitted to our 
facilities but no sales invoice has been issued. This is disclosed as accrued income. 
The Group will estimate the accrued income using the agreed contractual rate and the number of days where the service user was receiving 
care from the Group. 
Revenue disaggregation
The majority of the Group’s customers are state-owned entities such as local authorities. The Group’s operations are substantially within the 
UK. As such the Group has determined that because its revenue is earned in one geographical location to one specific type of customer, it is 
appropriate to report the revenue recognised from contracts with customers in the same operating segments as are used for segmental analysis 
(see note 4).
(n) Non-underlying items
The Group has applied an income statement format which seeks to highlight significant items within Group results for the year. Such items may 
include significant restructuring and onerous lease provisions, fair value movements in contingent consideration, profit or loss on disposal or 
termination of operations, litigation costs and settlement of share-based payments, profit or loss on disposal of investments and impairment 
of assets. The Group exercises judgement in assessing the particular items which, by virtue of their scale and nature should be disclosed in the 
income statement and related notes as non-underlying items. The Group believes that such a presentation is useful for the users of the financial 
statements in helping to provide a balanced view of, and relevant information on, the Group’s financial performance. Details are included in  
note 6.
(o) Expenses
Financing costs
Financing costs, comprising interest payable on bank loans and overdrafts, finance charges on finance leases, the unwinding of the discount on 
provisions and the costs incurred in connection with the arrangement of borrowings are recognised in the consolidated income statement using 
the effective interest method.
Interest payable is recognised in the consolidated income statement as it accrues, using the effective interest method. Financing costs that are 
directly attributable to the acquisition or construction of a qualifying asset are capitalised as part of the cost of that asset.
Financing costs also include losses arising on the change in fair value of derivatives that are recognised in the consolidated income statement.
126
127
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
2. Accounting policies continued
(p) Leased assets
The Group as a lessee
For any new contracts entered into on or after 1 October 2019, the Group considers whether a contract is, or contains, a lease. A lease is 
defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for 
consideration’. To apply this definition the Group assesses whether the contract meets three key evaluations which are:
	
– Contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified at the time 
the asset is made available to the Group.
	
– Group has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use, 
considering its rights within the defined scope of the contract.
	
– Group has the right to direct the use of the identified asset throughout the period of use. The Group assesses whether it has the right to direct 
‘how and for what purpose’ the asset is used throughout the period of use.
Measurement and recognition of leases as a lessee
At lease commencement date, the Group recognises a right-of-use asset and a lease liability on the balance sheet. The right-of-use asset is 
measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred by the Group, an estimate of 
any costs to dismantle and remove the asset at the end of the lease, and any lease payments made in advance of the lease commencement date 
(net of any incentives received).
The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the  
useful life of the right-of-use asset or the end of the lease term. The Group also assesses the right-of-use asset for impairment when such 
indicators exist.
At the commencement date, the Group measures the lease liability at the present value of the lease payments unpaid at that date, discounted 
using the interest rate implicit in the lease if that rate is readily available or the Group’s incremental borrowing rate.
Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed), variable 
payments based on an index or rate, amounts expected to be payable under a residual value guarantee and payments arising from options 
reasonably certain to be exercised.
Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is re-measured to reflect any 
reassessment or modification, or if there are changes in in-substance fixed payments.
When the lease liability is re-measured, the corresponding adjustment is reflected in the right-of-use asset, or profit and loss if the right-of-use 
asset is already reduced to zero.
The Group has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognising a 
right-of-use asset and lease liability, the payments in relation to these are recognised as an expense in profit or loss on a straight-line basis over 
the lease term.
On the statement of financial position, right-of-use assets and lease liabilities have been disclosed separately.
2. Accounting policies continued
(q) Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the consolidated income statement except to the 
extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Current tax is the expected tax payable on  
the taxable income for the year, using tax rates and laws enacted or substantively enacted at the balance sheet date, and any adjustment to  
tax payable in respect of previous years.
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and 
the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of goodwill; the initial 
recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination, and differences relating 
to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and 
liabilities, using tax rates and laws enacted or substantively enacted at the balance sheet date. A deferred tax asset is recognised only to the 
extent that it is probable that future taxable profits will be available against which the asset can be utilised. The carrying amounts of deferred  
tax assets are reviewed at each balance sheet date.
(r) Business combinations
The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the Group to obtain 
control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests 
issued by the Group, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. The calculation 
of contingent consideration is based on the provisions included in the sale and purchase agreement of each acquisition and is updated if 
circumstances change. Acquisition costs are expensed as incurred. Assets acquired and liabilities assumed are measured at their acquisition-
date fair values. The Group recognises non-controlling interests in an acquired entity either at fair value or at the non-controlling interest’s 
proportionate share of the acquired entity’s net identifiable assets. This decision is made on an acquisition-by-acquisition basis. For the non-
controlling interests in the AS Group and Smartbox, the Group elected to recognise the non-controlling interests at its proportionate share of  
the acquired net identifiable assets.
(s) Government grants
Government grants are recognised only when there is reasonable assurance that the Group will comply with any conditions attached to the 
grant and the grant will be received. The grants are recognised as income over the period necessary to match them with the related costs, for 
which they are intended to compensate, on a systematic basis. A grant receivable as compensation for costs already incurred or for immediate 
financial support, with no future related costs, is recognised as income in the period in which it is receivable.
3. Accounting estimates and judgements
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions which 
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from 
these estimates.
In the process of applying the Group’s accounting policies, the Directors have made the following estimates and judgements which have the 
most significant effect on the amounts recognised in the financial statements:
Estimates
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in 
which the estimates are revised and in any future periods affected.
128
129
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
3. Accounting estimates and judgements continued
Goodwill
The Group annually tests whether there is any impairment in goodwill, in accordance with the accounting policy outlined in note 2(e). 
Determining whether goodwill is impaired requires comparison of the value in use for the relevant CGUs to the net assets attributable to these 
CGUs. The value-in-use calculation is based on an estimate of future cash flows expected to arise from the CGUs and these are discounted to 
net present value using an appropriate discount rate. In calculating value in use, management judgement is required in forecasting cash flows 
of cash-generating units, in determining terminal growth values and in calculating an appropriate discount rate. The goodwill impairment test 
is sensitive to these estimates. The Group has performed sensitivity analysis over the value-in-use calculation with respect to the key estimates. 
The discount rates applied in these calculations are disclosed in note 15.
Judgements
Capitalised development costs
Capitalisation of development costs within software and licences requires the Directors to make judgements in allocating staff time appropriately 
to relevant projects and in assessing the technical feasibility and economic potential of those projects as well as forecasts for the useful 
economic life of each asset have been used. The useful economic life of development costs is determined to be five years.
CareTech Charitable Foundation
Judgement is required in determining whether the Group has control of the CareTech Charitable Foundation (the ‘Foundation’). In assessing 
control, the Group has assessed whether it is exposed, or has rights, to variable returns from its involvement in the Foundation. Consideration 
has been given to the fact the Group cannot directly appoint or remove a Trustee but can remove a member and veto the appointment of a new 
member. The membership of the charitable company is restricted to the independent Trustees and relevant activities of the charity governed 
by the Board of Trustees. Given the majority of the Trustees are Group employees, an assessment has been made as to whether the Group 
employees are able to exercise control and therefore generate variable returns. 
The Foundation’s Trustees owe very strict legal duties under the Charity Commission to act as fiduciaries and each Trustee must act independent 
of its own interest or indeed anyone else’s save for those of the charity. Based on these legal duties, the Directors have used their judgement that 
a Foundation Trustee could not act on behalf of a third party if acting in compliance with their duties and how the law permits and therefore the 
Group does not control the Foundation.
Fair value adjustments in business combinations
Judgement is required in determining the fair value adjustments as part of business combinations as detailed in note 5. For the fair value of 
intangible assets a third-party specialist has been engaged.
4. Segmental information
IFRS 8 requires operating segments to be determined based on the Group’s internal reporting to the Chief Operating Decision Maker (‘CODM’). 
The CODM has been determined to be the Group Chief Executive Officer as he is primarily responsible for the allocation of resources to 
segments and the assessment of the performance of each of the segments.
The CODM uses underlying EBITDA as reviewed at monthly Executive Committee meetings as the key measure of the segments’ results as  
it reflects the segments’ underlying trading performance for the period under evaluation. Underlying EBITDA is a consistent measure within  
the Group.
Inter-segment turnover between the operating segments is not material.
4. Segmental information continued
The Group’s reporting segments have been determined based on the services that are summarised as follows:
	
– Adults Services – the provision of care and residential services for adults with learning disabilities, individuals recovering from mental health 
disorders, adults with autistic spectrum disorder, those with one or more physical impairment and adults with acquired brain injury.
	
– Children’s Services – the provision of assessment, residential care and education for young people with challenging behaviours, and those 
with behavioural and emotional disorders.
	
– Foster Care – the provision of foster care for both mainstream and specialist foster care in small supportive groups across England and Wales 
for children with disabilities.
	
– Digital Technology – the provision of diagnostic assistive technology to enhance communication and the independence of disabled users.
The Group has aggregated its Middle East operating segment in the Adults Services and Children’s Services reporting segments in accordance 
with IFRS 8. The economic indicators assessed are the nature of the services provided, the nature of the production processes, the close 
similarity of the class of customers, the distribution methods of the services, and the government regulatory environments in which both the 
segments operate within.
The results as at the balance sheet date report segmental information on the Group’s four reporting segments. 
The segmental results for the current financial year ending 30 September 2021 and prior year ending 30 September 2020 and the reconciliation 
of the segment measures to the respective statutory items included in the consolidated financial information are as follows: 
Year ended
30 September
2021 
Total
£000
Year ended
30 September
2020 
Total
£000
Adults Services
Client capacity
2,104
1,997
Revenue £000
169,664
136,219
Underlying EBITDA before unallocated costs £000
38,360
35,676
Children’s Services
Client capacity
2,000
1,959
Revenue £000
268,559
252,863 
Underlying EBITDA before unallocated costs £000
76,165
69,561
Foster Care
Client capacity
875
1,028
Revenue £000
38,160
40,884
Underlying EBITDA before unallocated costs £000
7,718
8,563
Digital Technology
–
–
Revenue
12,932
–
Underlying EBITDA before unallocated costs
2,427
–
Total
Client capacity
4,979
4,984
Revenue £000
489,315
429,966
Underlying EBITDA before unallocated costs £000
124,670
113,800
Total Group revenue
Segmental revenue
489,315
429,966
Less: Intercompany sales and other revenue
(196)
–
Group revenue
489,119
429,966
130
131
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
4. Segmental information continued
Reconciliation of EBITDA to profit after tax:
Year ended
30 September
2021 
Total
£000
Year ended
30 September
2020
Total
£000
Underlying EBITDA before unallocated costs
124,670
113,800
Unallocated corporate overheads
(24,185)
(22,868)
Underlying EBITDA
100,485
90,932
Depreciation
(19,519)
(17,021)
Share-based payments’ charge
(473)
(330)
Non-underlying items (Note 6)
(989)
(20,219)
Operating profit
79,504
53,362
Finance expenses
(13,270)
(15,539)
Profit before tax
66,234
37,823
Taxation
(30,906)
(10,772)
Non-controlling interest
(3,420)
(1,933)
Profit after tax
31,908
25,118
Operations of the Group are primarily carried out in the UK, the Company’s country of domicile. The AS Group, registered in the (‘UAE’) has 
generated revenue in the UAE of £25.1m (2020: £15.5m). On 5 October 2020 the Group acquired a majority shareholding in Smartbox Assistive 
Technology Limited and associated subsidiaries. Revenue by Smartbox has been generated in Europe of £4.5m, North and Central America of 
£2.1m, Australasia of £0.6m, and Middle East and Africa of £0.7m. All other revenues arise within the UK.
No asset and liability information is presented above as this information is not allocated to operating segments in the regular reporting to the 
Group’s CODM and are not measures used by the CODM to assess performance and to make resource allocation decisions.
5. Business combinations 
(a) Acquisition of Smartbox
On the 5 October 2020, the Group acquired a majority holding in Smartbox Assistive Technology Limited and associated subsidiaries, and 
Sensory Software International Limited (Collectively ‘Smartbox’) a creator of augmentative and alternative communication (‘AAC’) solutions  
(‘the Investment’).
To facilitate the acquisition, the Group has established a new subsidiary, Smartbox Holdings Ltd, which is 70% owned by the Group, with the 
remaining minority ownership held by the Smartbox management team. Smartbox Holdings Ltd acquired 100% of Smartbox.
The Group will pay up to £12.0m comprising of an aggregate initial purchase price of £9.1m, funded through cash and loan note from the Group 
and cash from the minority holders of Smartbox Holdings Limited. Earn-outs of up to £3.6m payable over a two-year period from completion 
based upon the gross profit of Smartbox for the full year ended 30 September 2021. The Group expects this amount to be paid over a two-year 
period from the date of completion and has valued the contingent consideration at the fair value on acquisition date. The expected range of the 
amount payable is between £0 to £3.6m. The Group’s contribution will be funded from existing cash resources.
Smartbox is a market-leading creator of software and hardware that helps disabled people without speech to have a voice and live more 
independently. It makes communication as quick, simple and effective as possible for those service users for whom speech difficulties can be  
a challenge. Its solutions include communication aids, environmental control devices, computer control technology and interactive learning.
Smartbox, headquartered in Malvern, UK with offices in Bristol and Pennsylvania US, was acquired by Tobii AB in 2018. Following a full inquiry 
from the UK Competition and Markets Authority, Tobii was required to sell Smartbox on competition grounds, providing the Group an 
opportunity to secure a majority equity stake in the innovative tech firm.
5. Business combinations continued
The acquisition table is as follows:
Book values 
£000s
Fair value 
adjustments 
£000s
Total 
£000s
Intangible assets
–
5,217
5,217
Property plant & equipment
249
–
249
Right-of-use asset
1,111
–
1,111
Trade and other receivables
1,126
–
1,126
Inventory
878
–
878
Cash
2,163
–
2,163
Corporation tax
43
–
43
Deferred tax
(15)
(991)
(1,006)
Trade and other payables
(110)
–
(110)
Lease liability
(1,111)
–
(1,111)
Net assets on acquisition
4,334
4,226
8,560
Consideration paid
12,028
Goodwill
3,468
Consideration paid was:
£000
Cash
9,060
Contingent consideration
2,968
Total consideration
12,028
Reconciliation to the cash flow statement 
£000
Cash paid
9,060
Cash contribution by existing owners
(1,450)
Cash acquired
(2,163)
Payments for business combination net of cash acquired
5,447
Costs relating to this acquisition are expensed in the Income Statement in accordance with IFRS3 and are identified in note 6,  
non-underlying items.
Judgement is required in determining the fair value adjustments as part of business combinations and for the fair value of intangible assets  
a third-party specialist has been engaged. Intangible assets of £5.2m were recognised on acquisition related to digital technology,  
£3.4m, customer relationships, £0.9m and trade name, £0.9m. A respective deferred tax liability of £1m was raised.
Goodwill is attributable to the future economic benefits arising from assets which are not capable of being individually identified and separately 
recognised, these include value of the assembled workforce within the business acquired. Other intangible assets acquired comprise technology, 
customer relationships and the Smartbox trade name.
Goodwill arises as a result of the surplus of consideration over the fair value of the separately identifiable assets acquired.
Smartbox contributed revenue of £12.9m and £4.8m to the Group’s profit after tax for the year between the date of acquisition and the balance 
sheet date. Had the acquisition of Smartbox been completed on the first day of the financial year there would have been no material change to 
the Group revenues and profit after tax for the year.
132
133
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
5. Business combinations continued
(b) Acquisition of ‘The Huntercombe Group’
On 30 November 2020, the Group completed the transfer of seven services previously operated by The Huntercombe Group. These services  
are highly specialised facilities for the treatment and care of adults with complex learning disabilities, autism and mental health diagnoses.  
They consist of three hospitals, two care homes with nursing, a number of single accommodation units with residential care registration and  
the support of people in their own tenancies in a step-down facility. The capacity of the services today is 142 beds. The transfer was structured 
with no capital outlay and is expected to be immediately earnings accretive.
The acquisition table with the fair value of assets and liabilities is as follows:
Fair value 
£000s
Intangible assets
6,566
Property plant & equipment
440
Right-of-use asset
30,828
Deferred tax
(1,248)
Lease liability
(29,853)
Dilapidation provision
(975)
Net assets on acquisition
5,758
Consideration paid
–
Gain on bargain purchase
(5,758)
The Huntercombe Group contributed revenue of £20.8m and £0.7m to the Group’s profit after tax for the year between the date of acquisition 
and the balance sheet date. The Huntercombe Group revenues for the year would have been higher by £4.4m and Group profit after tax would 
have been higher by £0.3m for the current year ended.
Judgement is required in determining the fair value adjustments as part of business combinations and for the fair value of intangible assets 
a third-party specialist has been engaged. An intangible asset of £6.6m was recognised on acquisition as a result of acquired customer 
relationships and a respective deferred tax liability of £1.3m was raised. A right-of-use asset was recognised for its long-term leases and  
a corresponding lease liability and dilapidation provision. The fair value of owned property was £0.4m. 
The previous operator was going through difficulties and wanted to dispose the lease liabilities associated with these properties. Accordingly, 
CareTech was able to obtain ownership of the existing leases and operations with no capital outlay which resulted in a bargain purchase.
(c) Acquisition after the balance sheet date
Non-adjusting subsequent event
Acquisition of REHAVISTA GMBH (‘REHAVISTA’)
On 29 November 2021, (‘Smartbox’) announced the acquisition of REHAVISTA and its subsidiary company LogBUK. REHAVISTA is Germany’s 
largest provider of (‘AAC’) products and services. LogBUK is a subsidiary company to REHAVISTA, providing independent speech and language 
therapy to help AAC users achieve the best outcomes through specialist clinical support. Smartbox paid €10m in cash on completion, funded by 
the Group’s debt facility and post completion. CareTech will own 83% of Smartbox with the remaining minority ownership held by the Smartbox 
management team. 
Given the proximity of the announcement to the completion date of the transaction it is not possible to give a preliminary acquisition table at  
this time.
6. Non-underlying items
Non-underlying items are those items of financial performance which, in the opinion of the Directors, should be disclosed separately in order 
to improve the reader’s understanding of the trading performance of the Group. Non-underlying items comprise the following:
Note
2021 
£000
2020 
£000
COVID-19 income
(i)
(2,692)
(2,550)
Amortisation of intangible assets
(ii)
10,273
10,186
COVID-19 expenses
(i)
4,220
3,422
Acquisition expenses
(iii)
759
545
Sleep-in provision
(iv)
(11,777)
–
Gain on bargain purchases
(v)
(5,758)
–
Share-based payments’ charge
(vi)
–
4,119
Integration and restructuring costs
(vii)
4,761
3,769
Charitable donations
(viii)
1,203
728
Other non-underlying expenses
5,964
4,497
Total non-underlying expenses included in operating profit
989
20,219
Finance expenses
Fair value movements relating to derivative financial instruments
(ix)
(1,441)
557
Charges relating to derivative financial instruments 
(ix) 
1,195
591
Put-option interest
(x)
310
–
Interest on contingent consideration
(x)
582
–
Leases imputed interest
466
463
Total non-underlying expenses included in finance expenses
1,112
1,611
Tax on non-underlying items 
Current tax
(xi)
(1,116)
(5,988)
Deferred tax
(xii)
20,133
5,435
Included in taxation
19,017
(553)
Total non-underlying items
21,118
21,277
(i)	
The Group has incurred additional costs as a result of COVID-19 in relation to higher sickness absence rates, personal protective equipment (‘PPE’) costs, infection 
control and higher administration costs. The Group has received additional funding by way of Government grants through local authorities to assist in dealing with this. 
The Group has worked closely with all local authorities in establishing a dedicated funding arrangement to support our services which has been collected to offset 
the additional costs, as noted above, that the Group has incurred in relation to COVID-19. COVID-19 is unprecedented, and along with the size it meets the Group’s 
definition of non-underlying.
(ii)	 Amortisation relates primarily to acquisition-related intangible assets which are considered unique to a specific acquisition, whereas other development costs 
amortisation commences when system is launched. These costs, by their nature, can vary by size and amount each year. As a result, amortisation of intangibles is 
added back to assist with the understanding of the underlying trading performance of the business and to allow comparability.
(iii)	 In accordance with IFRS 3 (as revised) items associated with business combinations have been taken to the income statement as incurred. These items are considered 
specific one-off costs that occur for an acquisition that will not continue following completion. 
(iv)	 The Group held a sleep-in provision of £11.8m for the 2020 financial year end. On 24 March 2021, the Supreme Court made a final judgement that social care staff 
are not entitled to the national minimum wage for sleep-in shifts and the provision of £11.8m has been written back. The provision was primarily as a result of the 
acquisition of the Cambian Group in October 2018. The Directors have determined this should be adjusted from underlying due to its size, nature and incidence.
(v)	 Gain on bargain purchase arises from assets transferred from The Huntercombe Group, see note 5. An adjustment is made as this is unlikely to recur due to its size, 
nature and occurrence to ensure comparability.
134
135
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
6. Non-underlying items continued
(vi)	 In the prior financial year, to further support the CareTech Foundation, the Group donated one million new Ordinary Company Shares to the Foundation. This donation 
will provide the Foundation with additional income and demonstrates the Group’s commitment to wider society, to its staff, and its desire to play a strong leadership 
role within the social care sector. In connection with the donation, the CareTech Foundation has entered into a lock-up undertaking not to sell the new shares without 
the Company Board’s approval.
(vii)	 Integration costs of sites transferred from The Huntercombe Group, the Smartbox acquisition, and start-up costs in the Middle East have been incurred to the extent 
of £1.0m. Additionally, a reorganisation of the Specialist Services division following transfer of assets from The Huntercombe Group and the costs associated with the 
closure of one of its larger hospitals have been incurred of £1.9m. The costs of other homes closed during the year and related restructuring costs amounts to £0.9m.
(viii)	These charges represent charitable donations made to the CareTech Foundation, an independent grant-making corporate foundation registered with the Charity 
Commission. Funded and founded by the Group, the Foundation has a number of independent Trustees responsible for delivering its Charitable Objects. The Trustees 
also include Haroon and Farouq Sheikh OBE and Christopher Dickinson, Directors of the Group. The Group is not obliged to make these donations and this does not 
represent its underlying operations and consequently adjusted due to its nature.
(ix)	 Non-underlying items relating to the derivative financial instruments include the movements during the year in the fair value of the Group’s interest rate swaps which 
are not designated as hedging instruments and therefore do not qualify for hedge accounting, together with the quarterly cash settlements and accrual thereof. 
(x)	 Contingent consideration of £3.5m was recognised following the acquisition of Smartbox. This was discounted back to present value and as a result a recognition  
of interest on contingent consideration was recognised (note 5a). Additionally a put option was recognised as explained in note 24, at its present value. Interest on  
the put option will be recognised as a result. These are both considered costs of the acquisition and consequently adjusted for due to their nature.
(xi)	 Represents the current tax on items (i), (iii) and (vii) above, see note 10.
(xii)	 Deferred tax arises in respect of the following:
2021 
£000
2020 
£000
Derivative financial instruments 
611
107
Change in rate (Note 10)
(22,085)
(7,592)
Intangible assets
1,422
1,373
Fixed asset
–
1,925
Prior year adjustments
(81)
(966)
Other adjustments
–
(282)
(20,133)
(5,435)
Derivative financial instruments are explained in note (ix) and intangible assets adjustment arises from the amortisation charge as noted in (ii). 
Change in rate is explained in note 10 and relates predominantly to non-underlying items. 
7. Auditor’s remuneration
During the year, the Group (including its overseas subsidiaries) obtained the following services from the Company’s auditors and its associates:
2021 
£000
2020 
£000
Fees payable to the Group’s auditor and its associates for the audit  
of the consolidated Parent and Parent Company’s annual accounts
554
397
Fees payable to the Group’s auditor and its associates for the audit  
of the accounts of subsidiaries
52
16
Audit related assurance services
30
25
All other non-assurance services
–
11
8. Staff numbers and costs
The average number of persons employed by the Group (including Directors) during the year, analysed by category, was as follows:
Number of employees
2021
2020
Operational and service delivery staff
10,144
9,074
Maintenance
119
108
Management and administration
787
947
11,050
10,129
The aggregate payroll costs of these persons (including Directors) were as follows:
2021 
£000
2020 
£000
Wages and salaries
256,443
214,105
Share-based payments’ charge*
1,376
330
Social security costs
21,586
19,473
Other pension costs
5,693
5,250
285,098
239,158
*	 Share-based payments’ charge includes LTIP and ExSOP share-based payments of £903,000 (2020: £nil) and £473,000 (2020: £330,000) respectively.
9. Finance expenses
2021 
£000
2020 
£000
Interest expense on financial liabilities at amortised cost:
On bank loans and overdrafts
8,236
11,186
Finance charges in respect of leases
3,922
2,742
Underlying financial expenses 
12,158
13,928
Derivative financial instruments (Note 6)
64
1,148
Ground rent lease imputed interest (Note 6)
466
463
Interest on contingent consideration
582
–
Total finance expenses
13,270
15,539
136
137
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
10. Taxation
(a) Recognised in the consolidated income statement 
2021 
£000
2020 
£000
Current tax expense
Current year
(10,697)
(10,494)
Current tax on non-underlying items (Note 6)
1,116
5,988
Prior year adjustments
505
(374)
Total current tax
(9,076)
(4,880)
Deferred tax expense
Current year
(1,273)
(840)
Deferred tax on non-underlying items (Note 6)
(20,133)
(5,434)
Prior year adjustments
(424)
382
Total deferred tax
(21,830)
(5,892)
Total tax in the consolidated income statement 
(30,906)
(10,772)
(b) Reconciliation of effective tax rate
2021 
£000
2020 
£000
Profit before tax for the year
66,234
37,791
Tax using the UK corporation tax rate of 19.0% (2020: 19.0%) 
12,584
7,180
Non-deductible expenses including impairment charge
1,624
1,549
Income not taxable
(4,427)
(500)
Other tax adjustments
(1,172)
(1,644)
Change in tax rate
22,085
7,592
Current tax prior year adjustments
(294)
(3,988)
Deferred tax prior year adjustments
506
583
Total tax in the consolidated income statement 
30,906
10,772
Sleep-in provisions have been reversed following the Supreme Court ruling in favour of Mencap and a credit of £13.6m has been treated as  
non-taxable in accordance with this. The gain on bargain purchase of £5.7m arising on the acquisition of Huntercombe has also been treated  
as non-taxable.
Deferred tax assets and liabilities have been measured in line with IAS 12 using the tax rates and laws that have been enacted or substantively 
enacted by the reporting date that are expected to apply when the asset is realised or the liability is settled. On 10 June 2021, the Finance Act 
2021 received Royal Assent thereby increasing the rate of corporation tax to 25% with effect from 1 April 2023. As a result of this change a non-
underlying tax charge of £22.1m was recognised for the year ended 30 September 2021 in relation to the re-measurement of deferred tax assets 
and liabilities (2020: 19%).
11. Earnings per share	
2021 
£000
2020 
£000
Profit attributable to ordinary shareholders
31,908
25,118
Weighted number of shares in issue for basic earnings per share
110,775,312
109,772,214
Effects of share options in issue
5,358,398
4,220,077
Weighted number of shares for diluted earnings per share
116,133,709
113,992,292
Diluted earnings per share is the basic earnings per share adjusted for the dilutive effect of the conversion into fully paid shares of the weighted 
average number of share options outstanding during the period.
2021
2020
Earnings per share (pence per share)
Basic
28.80p
22.88p
Diluted
27.48p
22.03p
12. Underlying earnings per share
A measure of underlying earnings and underlying earnings per share has been presented in order to present the earnings of the Group after 
adjusting for non-underlying items which are not considered to reflect the underlying trading performance of the Group.
2021 
£000
2020 
£000
Profit attributable to ordinary shareholders
31,908
25,118
Non-underlying items (Note 6)
21,118
21,277
Underlying profit attributable to ordinary shareholders
53,026
46,395
Underlying earnings per share (pence per share)
Basic
47.87p
42.26p
Diluted
45.66p
40.70p
138
139
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
13. Property, plant and equipment 
Land and 
buildings 
£000
Fixtures, fittings 
and equipment 
£000
Motor 
vehicles 
£000
Total 
£000
Cost
At 30 September 2019 (before adoption of IFRS 16)
580,052
48,816
13,417
642,285
Reclassified as ROU asset (Note 14)
(15,098)
–
(4,437)
(19,535)
At 1 October 2019 (after adoption of IFRS 16)
564,954
48,816
8,980
622,750
Acquisitions through business combinations
–
399
–
399
Additions
11,529
12,813
1,769
26,111
Disposals
(1,294)
–
(1,307)
(2,601)
At 30 September 2020
575,189
62,028
9,442
646,659
At 1 October 2020
575,189
62,028
9,442
646,659
Acquisitions through business combinations
440
–
–
440
Additions
12,909
16,222
–
29,131
Disposals
(788)
(146)
(2,939)
(3,873)
At 30 September 2021
587,750
78,104
6,503
672,357
Depreciation and impairment 
At 1 October 2019
7,993
17,981
6,653
32,627
Depreciation charge for the year
1,183
8,648
1,133
10,964
Disposals
(62)
–
(966)
(1,028)
At 30 September 2020
9,114
26,629
6,820
42,563
At 1 October 2020
9,114
26,629
6,820
42,563
Depreciation charge for the year
1,228
10,095
1,161
12,484
Disposals
(82)
(243)
(1,847)
(2,172)
At 30 September 2021
10,260
36,481
6,134
52,875
Net book value
At 30 September 2020
566,075
35,399
2,622
604,096
At 30 September 2021
577,490
41,623
369
619,482
Included in the result for the year is a profit of £242,000 (2020: £135,000) on the disposal of freehold property, plant and equipment,  
and motor vehicles. Included in property, plant and equipment are amounts held under leases of nil (2020: nil).
The market value of land and building held at 30 September 2021 was £930m of which £468m is held as security for borrowings.
14. Leases 
Right-of-use assets
 
Land and 
buildings 
£000
Motor 
vehicles 
£000
Equipment 
£000
Total 
right-of-use 
assets 
£000
Gross carrying amount
Balance 1 October 2019
82,537
8,030
698
91,265
Additions
2,497
85
–
2,582
Balance at 30 September 2020
85,034
8,115
698
93,847
Balance 1 October 2020
85,034
8,115
698
93,847
Additions
40,079
2,397
–
42,476
Balance at 30 September 2021
125,113
10,512
698
136,323
Depreciation and impairment
Balance 1 October 2019
–
–
–
–
Depreciation
3,686
2,027
344
6,057
Balance at 30 September 2020
3,686
2,027
344
6,057
Balance 1 October 2020
3,686
2,027
344
6,057
Depreciation
4,746
1,948
341
7,035
Balance at 30 September 2021
8,432
3,975
685
13,092
Net book value
Carrying amount 30 September 2020
81,348
6,088
354
87,790
Carrying amount 30 September 2021
116,681
6,537
13
123,231
The right-of-use assets are included in the same line item as where the corresponding underlying assets would be presented if they  
were owned.
Lease liability
Lease liabilities are presented in the statement of financial position as follows:
2021 
£000
2020 
£000
Current
5,500
6,208
Non-current
118,781
82,480
124,281
88,688
The Group has leases for land and buildings, motor vehicles and office equipment. With the exception of short-term leases and leases  
of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. The Group classifies  
its right-of-use assets in a consistent manner to its property, plant and equipment.
140
141
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
14. Leases continued
Lease liability continued
Each lease generally imposes a restriction that, unless there is a contractual right for the Group to sublet the asset to another party, the right-of-
use asset can only be used by the Group. Leases are either non-cancellable or may only be cancelled by incurring a substantive termination fee. 
Some leases contain an option to purchase the underlying leased asset outright at the end of the lease, or to extend the lease for a further term. 
The Group is prohibited from selling or pledging the underlying leased assets as security. For leases over land and buildings the Group must keep 
those properties in a good state of repair and return the properties in their original condition at the end of the lease. Further, the Group must 
insure items of property, plant and equipment and incur maintenance fees on such items in accordance with the lease contracts.
The lease liabilities are secured by the related underlying assets. Future minimum lease payments at 30 September 2021 were as follows:
Within  
1 year
1–2  
years
2–3  
years
3–4  
years
4–5  
years
After  
5 years
Total
30 September 2021
Lease payments
9,565
9,511
7,815
6,767
6,474
392,069
432,201
Finance charges
(4,065)
(3,895)
(3,741)
(3,742)
(3,642)
(288,835)
(307,920)
Net present values
5,500
5,616
4,074
3,025
2,832
103,234
124,281
30 September 2020
Lease payments
9,086
7,600
5,423
4,394
4,103
324,188
354,794
Finance charges
(2,878)
(2,713)
(2,595)
(2,520)
(2,461)
(252,939)
(266,106)
Net present values
6,208
4,887
2,828
1,874
1,642
71,249
88,688
Lease payments not recognised as a liability
The Group has elected not to recognise a lease liability for short-term leases (leases with an expected term of 12 months or less) or for leases  
of low-value assets. Payments made under such leases are expensed on a straight-line basis. In addition, certain variable lease payments are  
not permitted to be recognised as lease liabilities and are expensed as incurred.
Interest expense on lease liabilities for the year ended 30 September 2021 was £3,510,000 (2020: £2,181,000). 
The expense relating to payments not included in the measurement of the lease liability is as follows:
2021  
£000
2020 
£000
Short-term leases
310
3,783
Leases of low-value assets
11
10
 
321
3,793
At 30 September 2021 the Group was committed to short-term leases and the total commitment at that date was £517,000 (2020: £3,793,000).
Total cash outflow for leases for the year ended 30 September 2021 was £7,693,000 (2020: £3,793,000).
15. Intangible assets 
Goodwill 
£000
Software and 
licences 
£000
Customer 
relationships 
£000
Technology 
£000
Other 
£000
Total 
£000
Cost
At 1 October 2019
81,484
23,005
110,698
–
–
215,187
Acquisitions through business 
combinations
4,703
–
10,433
–
–
15,136
Exchange adjustments
27
60
–
–
87
Additions for the year
418
2,429
–
–
–
2,847
At 30 September 2020
86,632
25,434
121,191
–
–
233,257
At 1 October 2020
86,632
25,434
121,191
–
–
233,257
Acquisitions through business 
combinations
3,468
–
7,428
3,393
963
15,251
Exchange adjustments
(194)
–
(430)
–
–
(624)
Additions for the year
–
2,868
–
–
–
2,868
Adjustments*
(1,012)
–
–
–
–
(1,012)
At 30 September 2021
88,894
28,302
128,189
3,393
963
249,740
Amortisation and impairment 
At 1 October 2019
2,028
15,663
37,692
–
–
55,383
Amortisation for the year
–
3,044
7,142
–
–
10,186
At 30 September 2020
2,028
18,707
44,834
–
–
65,569
At 1 October 2020
2,028
18,707
44,834
–
–
65,569
Amortisation for the year
–
3,265
6,232
679
97
10,273
At 30 September 2021
2,028
21,972
51,067
679
97
75,842
Net book value
At 30 September 2020
84,604
6,727
76,357
–
–
167,688
At 30 September 2021
86,866
6,330
77,122
2,714
866
173,898
*	 Adjustments relate to certain investments which historically have been included within goodwill. In the current year these have been reclassified  
and ultimately impaired in full.
Amortisation
The amortisation charge is recognised in the following line items in the consolidated income statement:
2021 
£000
2020 
£000
Administrative expenses
10,273
10,186
142
143
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
15. Intangible assets continued
Impairment testing for cash-generating units containing goodwill
The Group tests goodwill for impairment on an annual basis by considering the recoverable amount of individual cash-generating units (‘CGUs’) 
against carrying value.
For the purpose of annual impairment testing, goodwill is allocated into five identifiable CGUs: Adults Services, Children’s Services, Foster Care, 
Middle East and Digital Technology. This broadly aligns to the reported operating segments expected to benefit from the synergies of the 
business combinations in which the goodwill arises, with exception to Middle East. Whilst Middle East performs Adults Services and Children’s 
Services, given its geographical location, it has been identified as a separate CGU. This is the lowest level at which goodwill is monitored for 
impairment by management. There are no intangible assets with indefinite useful lives (other than goodwill).
The carrying value of goodwill is split between the following cash-generating units:
2021 
£000
2020 
£000
Adults Services
27,271
27,944
Children’s Services
44,769
44,769
Foster Care
7,162
7,162
Middle East
4,196
4,729
Digital Technology
3,468
–
86,866
84,604
During the year the Group carried out a review of the recoverable amount of its goodwill throughout the business. The recoverable amount, 
which is the higher of fair value less cost to sell and the value in use, has been determined initially based on value-in-use calculations. These 
calculations use cash flow projections for operational assets at the balance sheet date based on financial budgets approved by the Board of 
Directors for the forthcoming year which are based on assumptions of the business, industry and economic growth. Cash flows beyond this  
year are extrapolated using growth rates, which do not exceed the expected long-term economic growth rate of 2.5%, into perpetuity. 
The key assumptions for the period over which management approved forecasts are based and, beyond this, for the value-in-use calculations 
overall, are those regarding discount rates, growth and occupancy rates, achievement of future revenues and expected changes in direct costs 
during the periods. Management estimates discount rates using pre-tax rates that reflect the market assessment of the time value of money as  
at each balance sheet date, adjusted for the risks specific to the Group. 
In arriving at the values assigned to each key assumption management make reference to past experience and external sources of information 
regarding the future – for example changes in tax rates. The key features of these calculations are shown below:
2021
2020
Period over which management approved forecasts are based
1 year
1 year
Five-year growth rate
3.5%
2%
Long-term growth rate
2.5%
2%
Pre-tax discount rate
Adult Services
8.6%
8.4%
Children’s Services
10.0%
9.7%
Foster Care
10.0%
9.6%
Middle East
15.0%
14.7%
Digital Technology
12.5%
–
15. Intangible assets continued
Sensitivities
A sensitivity analysis has been performed on each of the base case assumptions used for assessing the goodwill with other variables held 
constant. Consideration of sensitivities to key assumptions can evolve from one financial year to the next. The Directors consider that a 
reasonable possible change in assumptions would be a decrease in long-term growth rate of 0.5%, an increase in pre-tax discount rate  
of 50 basis points, or a reduction in budgeted cash flows of 5%. 
None of these sensitivities would result in an impairment in the existing CGUs, however, the Adult Services CGU is still considered sensitive.
For Adult Services the current headroom is £29.3m. The impact of the above reasonable changes are as follows:
	
– A decrease in long-term growth rate by 0.5% results in a headroom of £2.9m.
	
– An increase in pre-tax discount rate of 50 basis points results in a headroom of £2.2m.
	
– A reduction in budgeted cash flows of 5% results in a headroom of £3.7m.
The Directors have also considered the amount by which the value assigned to each key assumption must change, after incorporating any 
consequential effects of that change on the other variables used to measure recoverable amount, in order for the Adult Services CGUs 
recoverable amount to be equal to its carrying amount as follows:
	
– A decrease in long-term growth rate by 0.6%.
	
– An increase in pre-tax discount rate of 54 basis points.
	
– A reduction in budgeted cash flows of 5.7%.
The Directors believe that, notwithstanding the sensitivity of Adult Services, there is no requirement for an impairment on the carrying value  
of the existing CGUs.
16. Inventories
2021 
£000
2020 
£000
Consumables
814
100
Raw materials
2,654
1,837
3,468
1,937
In 2021, a total of £10,118,000 (2020: £0) of inventories was included in profit or loss as an expense.
17. Trade and other receivables
2021 
£000
2020 
£000
Trade receivables (Note 29)
53,823
37,604
Other debtors and prepayments
5,606
5,025
Accrued income (Note 19)
12,177
8,426
71,606
51,055
144
145
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
18. Cash and cash equivalents
2021 
£000
2020 
£000
Cash at bank and in hand
65,560
54,273
There are no restrictions on cash at bank and in hand.
19. Accrued income and deferred income
Accrued  
income 
£000
Deferred 
income 
£000
At 1 October 2020
8,426
(30,309)
Accrued revenue invoiced
(8,426)
–
Revenue recognised in the reporting period
–
30,309
Revenue billed in period but relates to future periods
–
36,132
New accrued revenue
12,177
–
At 30 September 2021
12,177
(36,132)
The Directors consider that the carrying value of accrued income and deferred income approximates to its fair value.
20. Interest-bearing loans and borrowings
This note provides information about the contractual terms of the Group’s interest-bearing loans and borrowings. For more information  
about the Group’s exposure to interest rate risk, see note 29.
2021 
£000
2020 
£000
Non-current liabilities
Secured bank loans
322,403
317,122
Shareholder loans (Note 5)
1,758
1,833
324,161
318,955
Terms and debt repayment schedule 
Currency
Nominal interest rate (%)
Year of maturity
Book value 
2021
£000
Book value 
2020
£000
Term loan
£
2.04 (2020: 2.25)1
2023
161,202
158,561
Term loan
£
2.04 (2020: 2.50)1
2023
161,201
158,561
Revolving credit facility term loan
£
2.04 (2020: 2.75)1
2023
–
–
322,403
317,122
¹	 The margin on the facilities is stated at the current rate and can change between 1.50% and 3.25% based on the ratio of the Group’s net debt to adjusted EBITDA. 
The Group entered into new banking facilities in August 2018 to facilitate the acquisition of Cambian and the previous banking facilities were 
extinguished. The facility is a term loan of £322m and revolving credit facility of £25m to a group of banks comprising Barclays Bank PLC, HSBC 
UK Banks PLC, Santander UK PLC, AIB Group (UK) PLC, Clydesdale Bank PLC, Credit Suisse AG, Lloyds Bank PLC and National Westminster 
Bank PLC and is stated net of loan finance costs in accordance in IAS 23. During the course of the year, the Group completed the extension 
of the Term Loan A facility of £161.2m which will now mature in August 2023. The margin of the facility and covenants remain unchanged, 
reflecting the highly cash-generative nature of the business and deleveraging profile. In addition, both the Group’s loan and interest rate swaps 
have migrated to Compounded Daily SONIA as the reference rate. This has resulted as a non-substantial modification and accounted for as an 
adjustment to the existing liability and not an extinguishment.
21. Trade and other payables
2021 
£000
2020 
£000
Trade payables
15,220
15,576
Accrued expenses 
54,791
39,441
70,011
55,017
22. Deferred tax assets and liabilities 
Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
2021
2020
Assets 
£000
Liabilities 
£000
Assets 
£000
Liabilities 
£000
Property, plant and equipment
–
73,382
–
52,552
Intangible assets
–
15,905
–
11,616
Derivative financial instruments
(1,353)
–
(418)
–
Share-based payments
(1,606)
–
(163)
–
Rolled-over gains on property, plant and equipment
–
8,037
–
6,593
Trading losses carried forward
(88)
–
(27)
–
Short-term timing differences
(350)
–
(309)
–
Tax (assets)/liabilities
(3,397)
97,324
(917)
70,761
Net of tax assets
–
(3,397)
–
(917)
Net deferred tax liabilities
–
93,927
–
69,844
There are no unrecognised deferred tax assets or liabilities.
Movement in deferred tax during the year:
1 October 
2020 
£000
Recognised in 
income 
£000
Reclassification 
balances 
£000
Prior year 
adjustment 
£000
Change in  
tax rate 
£000
30 September 
2021 
£000
Property, plant and equipment
52,552
2,408
15
891
17,516
73,382
Derivative financial instruments
(418)
(611)
–
–
(324)
(1,353)
Intangible assets
11,616
(1,422)
2,237
32
3,442
15,905
Share options
(163)
(1,090)
–
33
(386)
(1,606)
Rolled-over gains on property
6,593
–
–
(485)
1,929
8,037
Trading losses carried forward
(27)
(80)
–
26
(7)
(88)
Short-term timing differences
(309)
35
–
9
(85)
(350)
69,844
(760)
2,252
506
22,085
93,927
146
147
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
22. Deferred tax assets and liabilities continued
Movement in deferred tax during the previous year:
1 October 
2019 
£000
Recognised  
in income 
£000
Reclassification 
balances 
£000
Prior year 
adjustment 
£000
30 September 
2020 
£000
Property, plant and equipment
42,213
4,521
5,685
133
52,552
Derivative financial instruments
(278)
(140)
–
–
(418)
Intangible assets
18,270
(5)
(5,685)
(964)
11,616
Share options
(90)
(73)
–
–
(163)
Rolled-over gains on property
3,836
946
–
1,811
6,593
Trading losses carried forward
–
(2)
–
(25)
(27)
Short-term timing differences
–
62
–
(371)
(309)
63,951
5,309
–
584
69,844
23. Provisions
£000
Legal and  
other disputes
Dilapidations
Other
Total
At 1 October 2020
16,794
4,292
200
21,286
Provisions raised during the period
–
1,500
–
1,500
Amounts used during the period
(4,198)
(802)
–
(5,000)
Unused amounts reversed
(12,246)
–
–
(12,246)
At 30 September 2021
350
4,990
200
5,540
Provisions principally comprise an amount provided for legal and other disputes and a provision for dilapidations. The Group held a sleep-in 
provision of £11.8m for the 2020 financial year end. On 24 March 2021, the Supreme Court made a final judgement that social care staff are  
not entitled to the National Minimum Wage for sleep-in shifts and the provision of £11.8m has been written back.
24. Derivative financial instruments
2021 
£000
2020 
£000
Put option
4,662
–
Interest rate swaps 
752
2,198
5,414
2,198
As part of the incorporation of Smartbox Holdings, the Group has granted the non-controlling interests the option to request the Group to 
acquire some or all of their shares in Smartbox Holdings Limited. The amount of the liability for this put option, which is held on the gross 
redemption basis, is derived from an internal valuation of the Smartbox business, utilising both discounted forecast future cash flow and 
multiples-based methodologies. The charge to equity is recognised separately as recognition of liabilities with non-controlling interest. The 
liability is subsequently accreted through finance charges, up to the redemption amount that is payable at the date at which the option first 
becomes exercisable. In the event that the option expires unexercised, the liability is derecognised with a corresponding adjustment to equity.
25. Employee benefits
Share-based payments
The Group operates five share option schemes: The CareTech Holdings 2017 Sharesave Scheme, the CareTech Holdings 2020 Sharesave 
Scheme, the CareTech Holdings 2015 Approved Share Option Scheme, the Executive Shared Ownership Plan and the Long-Term Incentive Plan. 
All share options are equity settled. 
The Executive Shared Ownership Plan (‘ExSOP’) was formed in March 2017. Under the provisions of the ExSOP, shares (‘the ExSOP shares’) are 
jointly owned by nominated senior employees and by an employees’ share trust. The ExSOP awards are subject to a time-related performance 
condition measured over a three-year period beginning with the date of the grant. To the extent the performance condition is satisfied, the 
participant can benefit from any growth of the share price in excess of the issue price. 
The grant of the ExSOP scheme requires specific performance conditions being satisfied. The EPS Target requires the growth in the 
Company’s underlying Diluted EPS over the Performance Period to be at least 15% (being an average 5% annual growth rate, calculated without 
compounding) during the year.
On 8 November 2019, the Group issued 2,504,475 new ordinary shares of 0.5p in the Company (‘the New Ordinary Shares’) under the Executive 
Shared Ownership Plan (‘Share Plan’) to 30 members of the senior and executive management team. An award under the Share Plan enables the 
participant to benefit only from the future growth in the value of the New Ordinary Shares above their market value on the award date, in excess 
of a ‘carrying cost’ of 3% per annum. 
The vesting of the Share Plan requires specific performance conditions being satisfied. As with the previous issuance of the Share Plan, the target 
is an EPS Target which requires the growth in the Group’s underlying Diluted EPS over the three-year period beginning on the date of issue of 
the awards to be at least 15% (being an average 5% annual growth rate, calculated without compounding). Participants may not normally realise 
any such benefit from the Share Plan awards before 8 November 2022.
On 21 December 2020, the Board approved the implementation of a new Long-Term Incentive Plan (‘LTIP’), and the Group granted 803,689  
nil-cost options over ordinary shares in the Company to the Company’s Executive Directors and certain other members of the senior 
management team. 
LTIP awards will normally vest on the third anniversary of the date of grant, subject to the satisfaction of any performance conditions as set out in 
the Directors’ Remuneration Report, and the grantee’s continued service. Upon vesting, 50% of the Award shares are subject to a holding period 
of four years from the date of grant, with the remaining 50% of the Award shares subject to a holding period of five years from the date of grant. 
The options have been valued using the Black-Scholes option pricing model in line with IFRS 2 ‘Share-Based Payments’. The assumptions used 
as part of the model include the following:
29 March  
2016
8 November  
2019
21 December 
2020
Expected volatility 
25%
25%
N/A*
Expected dividend yield 
3.90%
3.5%
0%**
Risk free interest rate 
2.39%
1.25%
N/A***
Vesting period
3 years
3 years
3 years
*	
Volatility has no impact on the core value of an award with no exercise price or market condition. Volatility over the one- and two-year holding periods are 39.03%  
and 30.95% respectively.
**	 Participants are entitled to receive dividend equivalents on these awards; therefore, the dividend yield does not have an impact on the fair value of these awards  
and has been set to zero.
***	 Awards with no exercise price or market condition are not affected by risk free rate. Risk free interest rate over the holding periods is zero.
148
149
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
25. Employee benefits continued
Approved and Unapproved scheme options are exercisable at any time from the third anniversary of the date of grant to the tenth anniversary, 
other than nominal cost options which may become exercisable at the earliest after a period of 30 dealing days following the third anniversary 
of being granted. SAYE scheme options are normally exercisable within six months following the third anniversary of the date of grant. Options 
granted under the above schemes, together with those remaining at 30 September 2021 are as follows:
Date of grant
Scheme
Options 
remaining as at 
30 Sep 2020
Options  
granted  
30 Sep 2021
Options  
lapsed to  
30 Sep 2021
Options 
exercised to  
30 Sep 2021
Options 
remaining  
as at  
30 Sep 2021
Exercise price 
of share option 
(pence)  
30 Sep 2021
Average 
exercised price 
(pence)  
30 Sep 2021
29 Mar 2016
Executive Share Ownership Plan
1,336,600*
–
–
(188,149)
1,148,451*
247.5
538
1 Dec 2017 
Sharesave Scheme 2017
220,600*
–
(67,133)
(153,467)
–
308
501
23 Oct 2019
Approved Share Option Plan 2015
857,772**
–
(193,152)
–
664,620**
380
–
5 Nov 2019
Approved Share Option Plan 2015
898,106**
–
–
–
898,106**
380
–
8 Nov 2019
Executive Share Ownership Plan 
2,504,475**
–
–
–
2,504,475**
399
–
21 Sep 2020
Sharesave Scheme 2020
480,678**
–
–
–
480,467**
355
–
21 Dec 2020
LTIP 2020
–
803,689
(4,107)
–
799,582**
Nil
–
*	 All options exercisable at 30 September 2021.
**	 No options exercisable at 30 September 2021.
The charge for the year was £473,000 (2020: £330,000) which relates to the Executive Share Ownership Scheme, the Sharesave Scheme 2017 
and the Approved Share Option Plan 2015, and £902,000 relating to the Long-Term Incentive Plan. The weighted average exercise price of the 
remaining options is 315.6p (2020: 398.7p). 
The weighted average remaining contractual life of all share options outstanding is 6.4 years (2020: 7.6).
26. Equity
Share capital
2021 
£000
2020 
£000
Allotted, called up and fully paid:
113,327,459 (2020: 113,173,992) ordinary shares of 0.5p each
566
565
53,402 deferred shares of 0.5p each
–
–
566
565
Share capital represents the nominal (par) value of shares that have been issued. The holders of ordinary shares are entitled to receive dividends 
as declared from time to time and are entitled to one vote per share at meetings of the Company. The deferred shares have no such rights.
Movements in the number of issued shares were as follows: 
 
Ordinary shares 
of 0.5p each
Deferred shares 
of 0.5p each
At 1 October 2019
109,144,369
53,402
Issued during the acquisition of AS Group
431,465
–
Issued to the CareTech Charitable Foundation
1,000,000
–
Issued under Share Schemes
2,598,158
–
At 30 September 2020
113,173,992
53,402
At 1 October 2020
113,173,992
53,402
Issued under Share Schemes
153,467
–
At 30 September 2021
113,327,459
53,402
27. Reserves
(a) Share premium account 
During the year, the issue of new shares charged to the share premium account are as follows:
2021 
£000
2020 
£000
Opening balance 1 October
133,079
121,304
Premium on issue of shares
472
11,775
At 30 September
133,551
133,079
Share premium includes any premiums received on issue of share capital, with the exception of shares issued in consideration in acquisitions. 
Any transaction costs associated with the issuing of shares are deducted from share premium, net of any related income tax benefits.
(b) Merger reserve
The merger reserve represents the premium arising on the ordinary shares issued as consideration for the acquisition of shares in another 
company (merger relief) (note 5). 
2021 
£000
2020 
£000
Opening balance 1 October 
125,842
125,536
Issue of shares 
–
306
At 30 September 
125,842
125,842
150
151
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
27. Reserves continued
(c) Shares held by Executive Shared Ownership Plan
Further information relating to the EBT reserve of the Group is detailed in note 25 to the consolidated financial statements of the Group.
(d) Retained earnings 
Retained earnings includes all current and prior period retained profits and share-based employee remuneration. Dividend distributions payable 
to equity shareholders are included in other liabilities when the dividends have been approved in a General Meeting prior to the reporting date. 
(e) Foreign currency translation reserves
A foreign currency translation reserve exists following the acquisition of the AS Group. This consists of exchange differences that arise on the 
translation on overseas net assets.
28. Dividends
The aggregate amount of dividends comprises:
2021  
£000
2020 
£000
Interim dividend paid in respect of prior year but not recognised as liabilities in that year  
(4.0p per share, (2020: 3.75p per share))
4,525
4,093
Final dividend paid in respect of the prior year (8.75p per share, (2020: 7.95p per share))
9,906
8,913
Aggregate amount of dividends paid in the financial year (12.75p per share (2020: 11.70p per share))
14,431
13,006
The aggregate amount of dividends proposed and not recognised as liabilities as at the year end is 14.1p per share, £10,482,790 (2020: 12.75p 
per share, £14,000,000).
29. Financial instruments
The use of financial instruments is managed under policies and procedures approved by the Board. These are designed to reduce the financial 
risks faced by the Group, which primarily relate to credit, interest and liquidity risks, which arise in the normal course of the Group’s business.
Credit risk
Financial instruments which potentially expose the Group to credit risk consist primarily of cash equivalents and trade receivables. Cash 
equivalents are deposited only with major financial institutions that satisfy certain credit criteria.
Management has a credit policy in place and exposure to credit risk is monitored on an ongoing basis. Credit evaluations are carried out on all 
significant prospective customers and all existing customers requiring credit beyond a certain threshold. Varying approval levels are set on the 
extension of credit depending upon the value of the sale.
Where credit risk is deemed to have risen to an unacceptable level, remedial actions including the variation of terms of trade are implemented 
under the guidance of senior management until the level of credit risk has been normalised.
29. Financial instruments continued
The Group provides credit to customers in the normal course of business. The amounts presented in balance sheet in relation to the Group’s 
trade receivables are presented net of loss allowances. The Group measures loss allowances at an amount equal to the lifetime expected credit 
losses (‘ECLs’) using both quantitative and qualitative information and analysis based on the Group’s historical experience and forward-looking 
information. During the year there was a debit to the consolidated income statement of £301,000 (2020: £28,000 charge) to decrease the loss 
allowance. 
At the balance sheet date, there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the 
carrying amount of each financial asset. Based on past experience, the Group believes that no further impairment allowance is necessary  
in respect of trade receivables not past due. The Group considers that the carrying value of trade receivables approximates to its fair value. 
The trade receivables as at 30 September are aged as follows:
2021 
£000
2020 
£000
Not due
27,915
26,304
Not more than three months past due
18,180
10,494
More than three months but not more than six months past due
4,039
805
More than six months but not more than 12 months past due
3,689
–
Trade receivables (Note 17)
53,823
37,604
The movement in provisions for impairment of trade receivables are as follows:
£000
At 1 October 2019
1,689
Credited to the consolidated income statement
(28)
At 30 September 2020
1,661
Charged to the consolidated income statement
301
At 30 September 2021
1,962
Included in the provision for impairment of trade receivables is an expected credit loss of £235,000 (2020: £220,000).
Interest rate risk
The Group finances its operations through called up share capital, retained profits, bank borrowings, and the sale of assets if appropriate. The 
Group’s income is by its nature relatively stable and its growth is, inter alia, impacted by inflation. Group policy is to balance interest rate fixes 
between the short, medium and long term. The benchmark rate for bank borrowings is LIBOR. The Group has not adopted hedge accounting. 
As at 30 September, the Group carried five hedging instruments, details of which are as follows:
	
– a 3 year swap commencing 16 May 2019 at pre-determined amounts initially starting at £21.6m at SONIA fixed at 1.076%
	
– a 3 year swap commencing 16 May 2019 at pre-determined amounts initially starting at £21.6m at SONIA fixed at 1.056%
	
– a 3 year swap commencing 16 May 2019 at pre-determined amounts initially starting at £27.6m at SONIA fixed at 1.076%
	
– a 3 year swap commencing 16 May 2019 at pre-determined amounts initially starting at £21.6m at SONIA fixed at 1.071%
	
– a 3 year swap commencing 16 May 2019 at pre-determined amounts initially starting at £27.6m at SONIA fixed at 1.066%
152
153
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
29. Financial instruments continued
Liquidity risk
The Group prepares annual cash flow forecasts reflecting known commitments and anticipated projects. Borrowing facilities are arranged as 
necessary to finance requirements. The Group has available bank facilities, sufficient, with cash flow from profits, to fund present commitments. 
Term facilities are utilised to fund capital expenditure and short-term flexibility is achieved by the utilisation of cash resources in respect of 
financial liabilities. The following table indicates their contractual cash flow maturities.
2021
Effective 
interest rate %
Carrying 
amount 
£000
Contractual 
cash flows 
£000
< 1 year 
£000
1–5 years 
£000
5 years & over 
£000
Trade and other payables
(70,011)
(70,011)
(70,011)
–
–
Secured bank loans
2.04%
(322,403)
(335,763)
(6,519)
(329,244)
–
Shareholder loans
(1,758)
(1,758)
(1,758)
–
–
Lease liabilities
(124,281)
(432,202)
(9,565)
(30,567)
(392,070)
Derivative financial instruments
(5,414)
(5,414)
–
(5,414)
–
(523,867)
(845,148)
(87,853)
(365,225)
(392,070)
2020
Effective  
interest rate %
Carrying  
amount 
£000
Contractual  
cash flows 
£000
< 1 year 
£000
1–5 years 
£000
5 years & over 
£000
Trade and other payables
(49,843)
(49,843)
(49,843)
–
–
Secured bank loans
3.5%
(317,122)
(338,457)
(7,116)
(331,341)
–
Shareholder loans
(1,833)
(1,833)
–
(1,833)
–
Lease liabilities
(88,688)
(293,452)
(8,581)
(19,897)
(264,974)
Derivative financial instruments
(2,198)
(2,198)
–
(2,198)
–
(459,684)
(685,783)
(65,540)
(355,269)
(264,974)
See note 20 for the maturity dates and interest rates charged on the secured bank loans. 
Analysis of changes in liabilities from financing activities
The below table represents the movement in liabilities from financing activities:
Secured bank 
loans 
£000
Lease liabilities 
£000
Shareholders loan 
£000
Derivative 
financial 
instruments 
£000
Total 
£000
1 October 2019
315,878
19,568
–
1,640
337,086
Cash flows
–
(8,797)
1,808
(1,053)
(8,042)
Adoption of IFRS 16
–
71,730
–
–
71,730
New leases
–
3,773
–
–
3,773
Changes in fair value
–
–
–
1,611
1,611
Effect of foreign exchange
–
–
25
–
25
Profit and loss
1,244
2,414
–
–
3,658
30 September 2020
317,122
88,688
1,833
2,198
409,841
Cash flows
(438)
(9,230)
–
(1,761)
(11,429)
Acquired through business acquisitions
–
36,639
–
–
36,639
New leases
–
4,612
–
–
4,612
Changes in fair value
–
–
–
4,977
4,977
Effect of foreign exchange
–
–
(75)
–
(75)
Profit and loss
1,212
3,572
–
–
4,784
30 September 2021
317,896
124,281
1,758
5,414
449,349
29. Financial instruments continued
CareTech’s three key covenant ratios are leverage (ratio of net debt to covenant EBITDA to be no more than 4.5), interest cover (ratio of covenant 
EBITDA to net finance costs to be no less than 4x) and LTV (ratio of property value to net debt to be no more than 62.5%). As at 30 September 
2021, we were operating comfortably within these ratios at 2.7x, 9.5x and 42% respectively.
Capital risk management
The Group manages its capital to ensure that activities of the Group will be able to continue as a going concern whilst maximising returns for 
shareholders through the optimisation of debt and equity.
The Group’s capital structure is as follows:
2021 
£000
2020 
£000
Net debt 
258,661
268,886
Equity (see Note 26)
382,407
364,216
Our policy is to increase the total dividend per year broadly in line with the movement in underlying diluted earnings per share. The final  
dividend will therefore increase to 9.5p per share demonstrating a confident view of the Group’s fundamental strength.
Net debt
Net debt comprises cash and cash equivalents net of bank loans and borrowings and HP leases previously accounted for under IAS 17  
excluding Project Teak sale and leaseback. Net debt remains unchanged following the adoption of IFRS 16.
Note
2021 
£000
2020 
£000
Net debt in the balance sheet comprises:
Cash and cash equivalents 
65,560
54,273
Bank loans
20
(317,896)
(317,122)
Shareholder loan
(1,758)
(1,833)
Lease and hire purchase contracts
18
(4,567)
(4,204)
Net debt at 30 September
(258,661)
(268,886)
Foreign currency risk
Most of The Group’s transactions are carried out in GBP. Exposures to currency exchange rates arise from the Group’s investment in ‘the AS 
Group’, registered in the United Arab Emirates, which is denominated in AED, and Smartbox which has sales to Europe, North and Central 
America, Australasia, Middle East and Africa. All other revenues arise within the UK and all non-current assets are likewise located in the UK.  
No single external customer amounts to 10% or more of the Group’s revenues.
Sensitivity analysis
In managing interest rate risks the Group aims to reduce the impact of short-term fluctuations on the Group’s earnings. Over the longer term, 
however, permanent changes in interest rates would have an impact on consolidated earnings.
At 30 September 2021, it is estimated that a general increase of 1% in interest rates would impact finance expense and decrease the Group’s 
profit before tax and equity by approximately £2,024,000 (2020: £2,020,000). Economic hedging instruments have been included in this 
calculation.
154
155
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
29. Financial instruments continued
Fair values
The fair values together with the carrying amounts shown in the balance sheet are as follows:
Carrying amount 
2021 
£000
Fair value  
2021 
£000
Carrying amount 
2020 
£000
Fair value  
2020 
£000
Financial Instruments at amortised cost
Cash at bank and in hand 
65,560
65,560
54,273
54,273
Trade receivables (Note 17)
53,823
53,823
37,604
37,604
Trade payables (Note 21)
(15,220)
(15,220)
(15,576)
(15,576)
Secured bank loans (Note 20)
(322,403)
(322,403)
(317,122)
(317,122)
Shareholder loan
(1,758)
(1,758)
(1,833)
(1,833)
Held at fair value through profit and loss:
Derivative financial instruments 
(5,414)
(5,414)
(2,198)
(2,198)
Contingent consideration 
(3,616)
(3,616)
(1,569)
(1,569)
Where market values are not available, fair values of financial assets and liabilities have been calculated by discounting expected future cash 
flows at prevailing interest rates with the following assumptions being applied:
	
– For trade and other receivables and payables with a remaining life of less than one year the carrying amount is deemed to reflect the fair 
value.
	
– For cash and cash equivalents the amounts reported on the balance sheet approximates to fair value.
	
– For secured bank loans at floating rate the carrying value is deemed to reflect the fair value as it represents the price of the instruments  
in the market place.
	
– For shareholder loans the amount is repayable in less than one year and the carrying amount is deemed to reflect the fair value.
	
– For the derivatives financial instruments, these were entered into to manage the Group’s exposure to interest rate risk on its external 
borrowings. 
The fair for contingent consideration and the Put option both arise on account of the acquisition in the year. The fair value has been determined 
based on a multiple of profit, measured using projected cash flows of the entity based on the management’s knowledge of the business and 
how the current economic environment is likely to impact it. These projections have not been discounted for the contingent consideration  
(as they are expected to be paid in less than a year) and have been discounted for the put option using 7.0%.
With regard to the put option, a change of +/- 10% in the cash flows and a change in +/-1% in the discount rate would impact the income 
statement by £66,000. With regard to the contingent consideration, a change of 10% in the forecast cash flows would not have a material  
impact on the income statement.
29. Financial instruments continued
Fair value hierarchy
The financial instruments carried at fair value by valuation methods are:
2021 
£000
2020 
£000
Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities
–
–
Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability 
either as a direct price or indirectly derived from prices
(752) 
(2,198)
Level 3 – inputs for the asset or liabilities that are not based on observable market data
(8,278) 
(1,569)
The fair values for all financial instruments carried at amortised costs are within level 3 of the fair value hierarchy. The fair value of the contingent 
consideration is the full amount payable under the earn-out as the Directors expect the gross profit criteria of Smartbox for the full year ended 
30 September 2021 to be met. The fair value of the put option is derived from an internal valuation of the Smartbox business, utilising both 
discounted forecast future cash flow and multiples-based methodologies.
30. Related parties
During the year, the Group paid rent totalling £701,155 (2020: £408,343) in respect of properties in which Farouq Sheikh OBE and Haroon Sheikh 
have an interest. At the year end, rent of £159,743 (2020: £240,595) was outstanding. The current lease liability recognised at 30 September 2021 
is £2,321,600 (2020: £2,705,000).
Dividends paid to Directors in the year totalled £61,000 (2020: £192,000).
Transactions with key management personnel
2021 
£000
2020 
£000
Salary 
4,233
4,131
Benefits
635 
322
Bonus
1,449 
1,348
Total short-term remuneration
6,317
5,801
Post-employment benefits
323
255
Share-based payments
110 
220
6,750 
6,276
Key management personnel are defined as Directors of the Group and members of the Senior Management Team.
Directors’ emoluments are set out on page 97.
During the year, the Group made donations to the CareTech Charitable Foundation which are set out in note 6. 
156
157
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
31. Group undertakings 
The Group has the following investments in trading subsidiaries included in the consolidated results for the year. The operating subsidiaries 
are engaged in either owning property (‘Property’) or in the provision of services to adults or children (‘Trading’). Additionally, the Group has 
subsidiaries that are non-trading, act as holding companies, or are dormant (‘Non-trading’).
Company
Company 
number
Country of incorporation
Type
Ownership 
2021%
Ownership 
2020%
Addington House Limited*
04404355
England and Wales
Operating
100
100
Advanced Childcare Services Limited*
07559570
England and Wales
Non-trading
100
100
Advances In Autism Care & Education Limited*
03252453
England and Wales
Non-trading
100
100
Applied Care and Development Ltd*
SC224352
Scotland
Operating
100
100
Ashcroft House Limited*
03390658
England and Wales
Operating
100
100
Ashring House Limited*
03370991
England and Wales
Operating
100
100
Ashview House Limited*
03304446
England and Wales
Operating
100
100
Barleycare Limited*
05156601
England and Wales
Operating
100
100
Beacon Care Holdings Limited*+
03293998
England and Wales
Non-trading
100
100
Beacon Care Investments Limited*+
04351554
England and Wales
Non-trading
100
100
Beacon Care Limited*
03160894
England and Wales
Non-trading
100
100
Beech Care Limited*
04050685
England and Wales
Operating
100
100
Branas Isaf (Ashfield House) Limited*
05761962
England and Wales
Operating
100
100
Branas Isaf (Bythnod & Hendre Llwyd) Limited*
04826628
England and Wales
Operating
100
100
Branas Isaf (Dewis) Limited*
04828115
England and Wales
Operating
100
100
Branas Isaf (Education Centre) Limited*
04826662
England and Wales
Operating
100
100
Branas Isaf (Llyn Coed) Ltd*
04826774
England and Wales
Operating
100
100
Branas Isaf (personal development & approach 
training) Limited*
04826959
England and Wales
Non-trading
100
100
Branas Isaf (Therapeutic Provision Limited)*
05355404
England and Wales
Non-trading
100
100
Branas Isaf Holdings Ltd*
04827227
England and Wales
Non-trading
100
100
Branas Isaf Personal Development Centre Ltd*
03744583
England and Wales
Non-trading
100
100
Bright Care Limited*
04050733
England and Wales
Operating
100
100
By the Bridge Holdings*
05712186
England and Wales
Non-trading
100
100
By the Bridge Limited*
04050928
England and Wales
Operating
100
100
By the Bridge Management Company Limited*
08587714
England and Wales
Non-trading
100
100
By the Bridge North West Limited*
05448746
England and Wales
Operating
100
100
Cambian Asperger Syndrome Services Limited*
04117476
England and Wales
Operating
100
100
Cambian Autism Services Limited*
03449214
England and Wales
Operating
100
100
Cambrian Care (Powys) Limited*
03813824
England and Wales
Non-trading
100
100
Cambian Childcare Limited*
04280519
England and Wales
Operating
100
100
Cambian Childcare Properties Limited*
05274924
England and Wales
Property
100
100
Cambian Education Services Limited*
05554772
England and Wales
Non-trading
100
100
Cambian FS Limited*
09501886
England and Wales
Non-trading
100
100
Cambian Group Holdings Limited*
08929407
England and Wales
Non-trading
100
100
Cambian Group Limited*+
08929371
England and Wales
Non-trading
100
100
Cambian Heritage I Limited*
05150238
England and Wales
Non-trading
100
100
Cambian Heritage II Limited*
03898254
England and Wales
Property
100
100
Interact Care Limited*
04822716
England and Wales
Operating
100
100
Cambian Properties (UK) Limited*
05554819
England and Wales
Non-trading
100
100
Company
Company 
number
Country of incorporation
Type
Ownership 
2021%
Ownership 
2020%
Cambian Signpost Limited*
06253729
England and Wales
Operating
100
100
Cambian Whinfell School Limited*
04617562
England and Wales
Operating
100
100
Cameron Care Limited*
SC283940
Scotland
Operating
100
100
Candour Housing CIC
13562034
England and Wales
Operating
100
–
Care Support Services Limited*
05356025
England and Wales
Operating
100
100
CareTech Community Services (No 2) Limited*
03894564
England and Wales
Operating
100
100
CareTech Community Services Limited*+
02804415
England and Wales
Operating
100
100
CareTech Consulting Limited*
07186925
England and Wales
Non-trading
100
100
Caretech Digital Limited
13601641
England and Wales
Operating
100
–
CareTech Estates (No 2) Limited*+
06518327
England and Wales
Property
100
100
CareTech Estates (No 3) Limited*+
06518491
England and Wales
Property
100
100
CareTech Estates (No 4) Limited*+
06543818
England and Wales
Property
100
100
CareTech Estates (No 5) Limited*+
07027116
England and Wales
Property
100
100
CareTech Estates (No 6) Limited*+
08420656
England and Wales
Property
100
100
CareTech Estates (No 7) Limited*+
08628141
England and Wales
Property
100
100
CareTech Estates Limited*+
05964868
England and Wales
Property
100
100
CareTech Foster Care Limited*
05185612
England and Wales
Non-trading
100
100
CareTech Fostering Holdings Limited* 
07206363
England and Wales
Non-trading
100
100
CareTech Fostering Services*
07205262
England and Wales
Non-trading
100
100
CareTech Housing Services*
03438332
England and Wales
Non-trading
100
100
CareTech International (Previously Family 
Assessment Services Limited) Limited*
06902547
England and Wales
Non-trading
100
100
Clifford House Limited*
03320573
England and Wales
Non-trading
100
100
Colerne Community Care (Kent) Limited*
02755757
England and Wales
Non-trading
100
100
Community Support Project Limited*+
05941774
England and Wales
Non-trading
100
100
Complete Care & Enablement Services Limited*
05905163
England and Wales
Operating
100
100
Continuum Care and Education Group Limited*
05804360
England and Wales
Non-trading
100
100
Counticare Limited*
02585666
England and Wales
Non-trading
100
100
Coveberry Limited*
01208511
England and Wales
Operating
100
100
Daisybrook Limited*
03026221
England and Wales
Operating
100
100
Dawn Hodge Associates Limited*
04130146
England and Wales
Operating
100
100
Delam Care Limited*
02995783
England and Wales
Operating
100
100
Delham Care Limited*
02748991
England and Wales
Non-trading
100
100
Elite Children’s Care Limited*
05251327
England and Wales
Non-trading
100
100
Emeraldpoint Limited*
03098166
England and Wales
Operating
100
100
EnableAll Limited
13540728
England and Wales
Operating
100
–
EQL Solutions Limited*+
08758477
England and Wales
Operating
100
100
Farrow House Limited*
03504115
England and Wales
Non-trading
100
100
Fostering Support Group Limited*
02359399
England and Wales
Operating
100
100
Franklin Homes Limited*
03002865
England and Wales
Operating
100
100
Glenroyd House Limited*
04326288
England and Wales
Operating
100
100
Gloucestershire Autism Services Limited*
03091510
England and Wales
Non-trading
100
100
Green Corns Limited*
03918305
England and Wales
Non-trading
100
100
Greenfields Adolescent Development Limited*
04068839
England and Wales
Operating
100
100
Greenfields Care Group Limited*
04642100
England and Wales
Non-trading
100
100
31. Group undertakings continued
158
159
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
Company
Company 
number
Country of incorporation
Type
Ownership 
2021%
Ownership 
2020%
Hereson House Limited*
04385252
England and Wales
Operating
100
100
Herts Care (Escort and Supervision Services) Limited*
03648069
England and Wales
Non-trading
100
100
Herts Care Group Limited*
04539660
England and Wales
Non-trading
100
100
Herts Care Limited*
03400914
England and Wales
Non-trading
100
100
Herts Care Property Limited*
04132387
England and Wales
Non-trading
100
100
Huntsmans Lodge Limited*
04668317
England and Wales
Operating
100
100
Independent Childcare Group of Schools Limited*
02525026
England and Wales
Non-trading
100
100
Inhoco 2993 Limited*
04934338
England and Wales
Non-trading
100
100
K O B Care Limited*
03039698
England and Wales
Non-trading
100
100
Kirkstall Lodge Limited*
04778674
England and Wales
Operating
100
100
Leigham Lodge Limited*
04583599
England and Wales
Operating
100
100
Lonsdale Midlands Limited*
02834141
England and Wales
Operating
100
100
Lyndhurst Psychiatric Residential Care Limited*
02958528
England and Wales
Non-trading
100
100
Magnolia Court Limited*
05444649
England and Wales
Operating
100
100
Mason Property Development Company Limited*
04308273
England and Wales
Property
100
100
Oakleaf Care (Hartwell) Limited*
05225317
England and Wales
Operating
100
100
One Six One Limited*
04136284
England and Wales
Operating
100
100
One Step (Support) Limited*
04534652
England and Wales
Operating
100
100
Onetrue Step Limited*
08339192
England and Wales
Non-trading
100
100
Outlook Fostering Services Limited*
04357704
England and Wales
Operating
100
100
Palm Care Limited*
04050739
England and Wales
Operating
100
100
Park Foster Care Ltd*
04861395
England and Wales
Operating
100
100
Park Foster Care Services Scotland Limited*
SC427502
Scotland
Operating
100
100
Phoenix Therapy and Care Limited*
SC254555
Scotland
Operating
100
100
Pinnacle Supported Living Limited*
02736242
England and Wales
Non-trading
100
100
Prestwood Residential Homes Ltd*
04129564
England and Wales
Operating
100
100
Primrose Court Limited*
04803769
England and Wales
Operating
100
100
Professional Integrated Care Services Limited*
04771613
England and Wales
Non-trading
100
100
Purple Zest Limited*+
11421082
England and Wales
Operating
100
100
Roborough House Limited*
05054294
England and Wales
Operating
100
100
ROC North West Ltd*
05564417
England and Wales
Operating
100
100
Rosedale Children’s Services Limited*
04932054
England and Wales
Operating
100
100
SACCS Care Limited*
04495879
England and Wales
Non-trading
100
100
SACCS Limited*
04497910
England and Wales
Non-trading
100
100
Selborne Care Limited*
05513162
England and Wales
Operating
100
100
Selwyn Care Limited*
03737832
England and Wales
Operating
100
100
Smartbox Holdings Limited
12813709
England and Wales
Non-trading
70
–
Smartbox Assistive Technology Limited
05541084
England and Wales
Operating
100
–
Smartbox Assistive Technology Inc. (US co)
6082148
Delaware, US
Operating
100
–
Smartbox Assistive Technology (EU) (Ireland co)
658998
Ireland
Operating
100
–
Sensory Software International Limited
03662043
England and Wales
Operating
100
–
South East Care Services Limited*
02296352
England and Wales
Non-trading
100
100
Spark of Genius Limited*
SC479758
Scotland
Non-trading
100
100
Spark Of Genius (North East) LLP 
OC384807
England and Wales
Operating
50
50
Spark Of Genius (Training) Limited*
SC196146
Scotland
Operating
100
100
Company
Company 
number
Country of incorporation
Type
Ownership 
2021%
Ownership 
2020%
St Michael’s Support & Care Limited*
05978585
England and Wales
Operating
100
100
Sunnyside Care Homes Ltd*
04589719
England and Wales
Operating
100
100
The Community Care Company UK Limited*
02816119
England and Wales
Non-trading
100
100
TLC (Wales) Independent Fostering Limited*
04824925
England and Wales
Operating
100
100
Trojan Spark Limited*
SC453152
Scotland
Non-trading
100
100
Uplands (Fareham) Limited*
03488896
England and Wales
Operating
100
100
Valeo Community Projects Limited*
03941224
England and Wales
Non-trading
100
100
Valeo Limited*+
04099715
England and Wales
Operating
100
100
Victoria Lodge Limited*
04454845
England and Wales
Operating
100
100
Vosse Court Limited*
04778676
England and Wales
Operating
100
100
White Cliffs Lodge Limited*
04351559
England and Wales
Operating
100
100
Wyatt House Limited*
04319271
England and Wales
Non-trading
100
100
Advanced Childcare Capital Limited
107650
Jersey2
Non-trading
100
100
Advanced Childcare Holdings Limited
107660
Jersey2
Non-trading
100
100
Cambian Capital Limited
87311
Jersey2
Non-trading
100
100
Cambian Developments II Limited
104724
Jersey2
Non-trading
100
100
Advanced Childcare Finance Limited
107661
Jersey2
Dissolved
–
100
Advanced Childcare Group Limited
107672
Jersey2
Dissolved
–
100
Cambian Developments I Limited
106304
Jersey2
Dissolved
–
100
Cambian Developments Limited
102148
Jersey2
Dissolved
–
100
Cambian Finance Limited
91181
Jersey2
Dissolved
–
100
Cambian Holdings Limited
87312
Jersey2
Dissolved
–
100
Cambian Manco Limited
109922
Jersey2
Dissolved
–
100
Care Aspirations Finance Limited 
101512
Jersey2
Dissolved
–
100
Care Aspirations Holdings Limited 
101522
Jersey2
Dissolved
–
100
Care Asprirations Capital Limited 
101503
Jersey2
Dissolved
–
100
H2O Limited
FC97291
Gibraltar
Non-trading
100
100
Hazeldene UK Limited1
FC015967
Gibraltar
Operating
100
100
Cambian Properties II Limited
91131
Jersey2
Property
100
100
CareTech Cloud Limited*
12392889
England and Wales
Non-trading
100
100
CareTech Mena Social Care LLC
1010563230
Saudi Arabia
Non-trading
100
100
CareTech Holdings Limited
3381
United Arab Emirates
Non-trading
100
100
AS1 Investments Holding Ltd (ADGM)
3272
United Arab Emirates
Non-trading
52
94
AS2 Investments Holdings Ltd (ADGM)
5298
United Arab Emirates
Non-trading
89.9
–
AS Investments Holding Ltd (ADGM)
3087
United Arab Emirates
Non-trading
52
52
Macani Medical Centre
CN-1937451
United Arab Emirates
Operating
99
49
AS Northwood Investments Holdings LLC (ADGM)
CN-2696945
United Arab Emirates
Non-trading
99
99
ACPN Dubai
674030
United Arab Emirates
Operating
65
65
ACPN Abu Dhabi
CN-1142528
United Arab Emirates
Operating
65
65
ACPN Al Ain
CN-1142528-1 United Arab Emirates
Operating
65
65
Care Talent Advisors Limited*
12391623
England and Wales
Non-trading
60
60
Jobzooma Limited
10127824
England and Wales
Operating
29.4
29.4
Recruiterlink Limited
11665920
England and Wales
Operating
29.4
29.4
31. Group undertakings continued
31. Group undertakings continued
160
161
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
1	
Has a UK designated trading branch, Hazeldene UK Limited.
2	
Registered office 9 Burrard Street, St Helier, Jersey JE4 5SE.
+	 Owned directly by the Company.
*	
These subsidiaries have taken advantage of the audit exemption under s479A and s479C of the Companies Act 2006 for the period ended 30 September 2021. As such, 
the Company has provided a guarantee against all debts and liabilities in these subsidiaries as at 30 September 2021.
Exemption from audit by Parent guarantee
The Company being the ultimate sole shareholder of its subsidiaries has decided to take the exemption from audit of a number of subsidiaries 
for the year ended 30 September 2021 under Sections 479A and 479C of the Companies Act 2006 and the Company will provide a guarantee 
for all the liabilities of those entities as at 30 September 2021 detailed above with the exception of Hazeldene UK Limited, H2O Limited and Spark 
of Genius (North East) LLP and Advanced Childcare Capital Limited, Advanced Childcare Finance Limited, Advanced Childcare Group Limited, 
Advanced Childcare Holdings Limited, Cambian Capital Limited, Cambian Developments I Limited, Cambian Developments II Limited, Cambian 
Developments Limited, Cambian Finance Limited, Cambian Holdings Limited, Cambian Manco Limited, Care Aspirations Finance Limited, Care 
Aspirations Holdings Limited, Care Aspirations Capital Limited and Cambian Properties II Limited. 
Wholly-owned subsidiaries incorporated in Gibraltar and Jersey will not be covered by the Parent Company guarantee as they are incorporated 
outside of the UK. 
Unless otherwise stated above, the registered offices of all subsidiaries is 5th Floor Metropolitan House, 3 Darkes Lane, Potters Bar, England,  
EN6 1AG with the exception of:
Company
Address
Applied Care and Development Ltd
Netherlea House, Bankend Road, Dumfries, DG1 4AL
Cameron Care Limited
Inspire Children Services, Lochview, Fort William, Inverness-Shire, PH33 7NP
Dawn Hodge Associates Limited
Fiveways House, Buildwas Road, Neston, CH64 3RU
Park Foster Care Services Scotland Limited
272 Bath Street, Glasgow, G2 4JR
Phoenix Therapy and Care Limited
1 Lodge Street, Haddington, East Lothian, EH41 3DX
Professional Integrated Care Services Limited
Tan Y Fron, Pontardulais Road, Crosshands, Carmarthenshire, SA14 6PG
Spark of Genius Limited
Trojan House Pegasus Avenue, Phoenix Business Park, Paisley, PA1 2BH
Spark of Genius (North East) LLP 
King Edwin School Mill Lane, Norton, Stockton-On-Tees, North Yorkshire, TS20 1LG
Spark of Genius (Training) Limited
Trojan House Pegasus Avenue, Phoenix Business Park, Paisley, PA1 2BH
Trojan Spark Limited
Trojan House Pegasus Avenue, Phoenix Business Park, Paisley, PA1 2BH
H2O Limited
Montagu Pavillion, 8-10 Queensway, Gibraltar
Hazeldene UK Limited
Montagu Pavillion, 8-10 Queensway, Gibraltar
CareTech Mena Social Care LLC
7534 King Abdul Aziz Road – Al Ghadeer District, Unit No 44, Riyadh 13311-4672,  
Kingdom of Saudi Arabia
CareTech Holdings Limited
2459, 24, Al Sila Tower, Abu Dhabi Global Market Square, Al Maryah Island, Abu Dhabi, 
United Arab Emirates
AS1 Investments Holding Ltd (ADGM)
2458 Al Sila Tower, ADGM Square, Al Marya Island Abu Dhabi, UAE
AS2 Investments Holding Ltd (ADGM)
16th Floor, Wework Hub71, Al Khatem Tower, ADGM Square, Al Maryah Island, Abu Dhabi, 
United Arab Emirates
AS Investments Holding Ltd (ADGM)
2458 Al Sila Tower, ADGM Square, Al Marya Island, Abu Dhabi, UAE
Macani Medical Centre
Ahmed Ali Mohamed Abdulla Alsayegh Building, Office 205,  
GH 10, Q 63, T 2, Al Khalidiah Street, Abu Dhabi, UAE
AS Northwood Investments Holdings LLC (ADGM)
Unit of Ahmed Ali Mohamed Abdulla Alsayegh, West 10,0,  
PO Box No. 52613, Abu Dhabi, UAE
ACPN Dubai
Jumeirah Sunset Mall, Jumeirah 3, PO Box 66026, Dubai, UAE
Company
Address
ACPN Abu Dhabi
Khalid bin Abdul Aziz Street, Mounira Sheikh Ahmed Al Mubarak Building, PO Box 108699, 
Abu Dhabi, UAE
ACPN Al Ain
Villa of Mohammed Raashid Mohammed and others, Al Ghil, Al Ma’atarid, Al Ain, Abu Dhabi, 
UAE
Smartbox Assistive Technology Limited
Ysobel House Enigma Commercial Centre, Sandys Road, Malvern, Worcestershire, England, 
WR14 1JJ
Smartbox Assistive Technology Inc. (US co)
2831 Leechburg Road, NEW KENSINGTON, PA 15068, Westmoreland
Smartbox Assistive Technology (EU) (Ireland co)
Jpa Brenson Lawlor House, Argyle Square Morehampton Road, Donnybrook, Dublin
Sensory Software International Limited
Seneca House Links Point, Amy Johnson Way, Blackpool, Lancashire, FY4 2FF
Subsidiaries with material non-controlling interest (‘NCI’)
The Group has aggregated the subsidiary financial information of the AS Group acquired on 4 February 2020. The Group has considered  
it appropriate to aggregate the information due to geographical location and the nature of the activities being performed is consistent.  
The below table shows the subsidiaries that form part of the Group.
Subsidiary name
Principal place of business
Proportion 
of ownership 
interests held by 
non‑controlling 
interests
Proportion 
of voting 
rights held by 
non‑controlling 
interests
AS Investments Holding Ltd (ADGM)
United Arab Emirates
48%
48%
AS Northwood Investments Holdings LLC (ADGM)
United Arab Emirates
1%
1%
ACPN Dubai
United Arab Emirates
35%
35%
ACPN Abu Dhabi
United Arab Emirates
35%
35%
ACPN Al Ain
United Arab Emirates
35%
35%
AS1 Investments Holding Ltd (ADGM)
United Arab Emirates
6%
6%
Macani Medical Centre
United Arab Emirates
51%
51%
2021 
£’000
2020 
£’000
Profit allocated to NCIs during the reporting period
521
1,234
Dividends paid
(1,160)
–
Accumulated NCI at 30 September
8,567
9,206
31. Group undertakings continued
31. Group undertakings continued
162
163
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Notes to the Financial Statements
continued
Company Statement of Financial Position
as at 30 September 2021
31. Group undertakings continued
Summarised financial information for the AS Group is set out in the table below:
2021 
£’000
2020 
£’000
Current assets
9,344
8,139
Non-current assets
304
274
Current liabilities
(2,213)
(2,870)
Non-current liabilities
(1,758)
(1,833)
Revenue
25,054
15,548
Profit and total comprehensive income
3,131
1,881
Net cash from operating activities
(40)
2,202
Net cash used in investing activities
(160)
(77)
Net cash used in financing activities
(1,160)
(161)
Net cash inflow
(1,360)
1,964
The Group has aggregated the subsidiary financial information of Smartbox Assistive Technology Limited and associated subsidiaries, and 
Sensory Software International Limited (Collectively ‘Smartbox’) acquired on 5 October 2020. The Group has considered it appropriate to 
aggregate the information due to geographical location and the nature of the activities being performed being consistent. The below table 
shows the subsidiaries that form part of the Group.
Subsidiary name
Principal place of business
Proportion 
of ownership 
interests held by 
non‑controlling 
interests
Proportion 
of voting 
rights held by 
non‑controlling 
interests
Smartbox Holdings Limited
England and Wales
30%
30%
SMARTBOX ASSISTIVE TECHNOLOGY LIMITED
Delaware, US
0%
0%
Smartbox Assistive Technology, Inc.
England and Wales
0%
0%
Smartbox Assistive Technology (EU) Limited
Ireland
0%
0%
Sensory Software International Limited
England and Wales
0%
0%
2021 
£’000
2020 
£’000
Profit allocated to NCIs during the reporting period
464
–
Accumulated NCI at 30 September
1,914
–
Summarised financial information for the Smartbox Group is set out in the table below:
2021 
£’000
2020 
£’000
Current assets
139
–
Non-current assets
11,983
–
Current liabilities
(3,550)
–
Non-current liabilities
(2,780)
–
Note
2021 
£000
2020 
£000
Non-current assets
Tangible assets
135
–
Investments
34
402,781
399,859
402,916
399,859
Current assets
Trade and other receivables
35
236,041
247,171
Cash and cash equivalents
1,553
485
237,594
247,656
Total assets
640,510
647,515
Current liabilities
Trade and other payables
37
40,642
48,411
40,642
48,411
Non-current liabilities
Loans and borrowings
36
319,356
318,592
Total liabilities
359,998
367,003
Net assets
280,512
280,512
Equity 
Share capital
39
566
565
Share premium
133,551
133,080
Merger reserve
125,842
125,842
Retained earnings
20,553
21,025
Total equity attributable to equity shareholders of the Parent
280,512
280,512
Under section 408 of the Companies Act 2006 the Company is exempt from the requirement to present its own income statement.  
The profit for the year included in the financial statements of the Company was £12,584,000 (2020 loss: £15,845,000).
These financial statements were approved by the Board of Directors and authorised for issue on 6 December 2021 and were signed  
on its behalf by:
Farouq Sheikh OBE	
Christopher Dickinson 
Group Executive Chairman	
Group Chief Financial Officer 
Company number: 04457287
164
165
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Share capital 
£000
Share premium 
£000
Merger reserve 
£000
Retained earnings 
£000
Total equity 
£000
At 1 October 2019
545
121,304
125,536
45,757
293,142
Loss for the year and total comprehensive income
–
–
–
(15,845)
(15,845)
Issue of shares
20
11,776
306
–
12,102
Share-based payments’ charge
–
–
–
4,119
4,119
Dividends
–
–
–
(13,006)
(13,006)
At 30 September 2020
565
133,080
125,842
21,025
280,512
At 1 October 2020
565
133,080
125,842
21,025
280,512
Profit for the year and total comprehensive income
–
–
–
12,584
12,584
Issue of shares
1
471
–
–
472
Share-based payments’ charge
–
–
–
1,375
1,375
Dividends
–
–
–
(14,431)
(14,431)
At 30 September 2021
566
133,551
125,842
20,553
280,512
32. Accounting policies
(a) Basis of preparation
CareTech Holdings PLC (‘the Company’) meets the definition of a qualifying entity under Financial Reporting Standard (‘FRS’) 100, issued by the 
Financial Reporting Council (‘FRC’). Accordingly, the financial statements have been prepared in accordance with FRS 101 Reduced Disclosure 
Framework. The financial statements have been prepared on a historical cost basis except in respect of those financial instruments that have 
been measured at fair value at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given  
in exchange for goods and services.
As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that standard in relation to share-based 
payment, financial instruments, capital management, presentation of comparative information in respect of certain assets, presentation of cash 
flow statement and certain related-party transactions.
(b) Investments
Investments in subsidiary undertakings are stated in the balance sheet of the Company at cost less impairment written off.
(c) Cash and liquid resources
Cash, for the purpose of the cash flow statement, comprises cash in hand and deposits repayable on demand and those with maturities of  
three months or less from inception, less overdrafts payable on demand.
(d) Interest-bearing borrowings
Interest-bearing borrowings are recognised initially at fair value less directly attributable transaction costs. Subsequent to initial recognition, 
interest-bearing borrowings are stated at amortised cost with any difference between proceeds (net of transaction costs) and the redemption 
value being recognised in the consolidated income statement over the period of the borrowings on an effective interest basis.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least  
12 months after the reporting date.
(e) Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in profit or loss except to the extent that it relates  
to items recognised directly in equity, in which case it is recognised in equity. 
Current tax is the expected tax payable on the taxable income for the year, using tax rates and laws enacted or substantively enacted at the 
balance sheet date, and any adjustment to tax payable in respect of previous years.
(f) Revenue
Revenue represents management fees receivable, in respect of the period to which management services relate.
(g) Share-based payments
The share option programme allows employees to acquire shares of the Company. The fair value of options granted is recognised as an 
employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which 
the employees become unconditionally entitled to the options. The fair value of the options granted is measured using an option pricing model, 
taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect 
the actual number of share options that vest except where forfeiture is only due to share prices not achieving the threshold for vesting.
Where the Company grants options over its own shares to the employees of its subsidiaries it recognises an increase in the cost of investment 
in its subsidiaries equivalent to the equity-settled share-based payment charge recognised in its subsidiary’s financial statements with the 
corresponding credit being recognised directly in equity.
Company Statement of Changes in Equity
as at 30 September 2021
Notes to the Company Financial Statements
166
167
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

32. Accounting policies continued
(h) Employee Benefit Trust (‘EBT’)
The Company has not elected to consolidate the employee benefit trust and consequently recognise it as an investment in subsidiary, and 
recognise a receivable balance for any shares issued to the trust, and is subsequently measured at amortised cost. These receivables are payable 
on demand and do not carry any interest. Considering these amounts are receivable on the sale of shares held by the trust and such shares are 
quoted higher than the value receivable, the Company are of the view that there are no credit losses as at balance sheet date.
(i) Financial instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial 
instrument. All financial assets are initially measured at fair value adjusted for transaction costs (where applicable). Financial liabilities are initially 
measured at fair value, and, where applicable, adjusted for transaction costs unless the Company designated a financial liability at fair value 
through profit or loss. Subsequent measurement of financial assets and financial liabilities are described below.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and  
all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.
Classification and subsequent measurement of financial assets
For the purpose of subsequent measurement, financial assets are classified into the following categories upon initial recognition:
	
– Financial assets at amortised cost.
	
– Financial assets/liabilities held at (‘FVTPL’).
FVTPL assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair values of financial assets in this 
category are determined by reference to active market transactions or using a valuation technique where no active market exists.
All income and expenses relating to financial assets that are recognised in the consolidated income statement are presented within finance costs 
or finance income, except for impairment of trade receivables which is presented within other administrative expenses.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVTPL):
	
– they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows; and
	
– the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount 
outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect 
of discounting is immaterial. The Company’s cash and cash equivalents, trade and most other receivables fall into this category of financial 
instruments.
Financial assets at FVTPL
Financial assets that are held within a different business model other than ‘hold to collect‘ or ‘hold to collect and sell‘ are categorised at fair value 
through profit and loss. Further, irrespective of business model financial assets whose contractual cash flows are not solely payments of principal 
and interest are accounted for at FVTPL. All derivative financial instruments fall into this category.
Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair values of financial assets in this 
category are determined by reference to active market transactions or using a valuation technique where no active market exists.
32. Accounting policies continued
Classification and subsequent measurement of financial liabilities
The Company’s financial liabilities include borrowings, trade and other payables and derivative financial instruments. Financial liabilities are 
measured subsequently at amortised cost using the effective interest method, except for financial liabilities held for trading or designated at 
FVTPL, that are carried subsequently at fair value with gains or losses recognised in the consolidated income statement. All derivative financial 
instruments that are not designated and effective as hedging instruments are accounted for at FVTPL.
All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in consolidated income statement are 
included within finance costs or finance income.
From time to time, the long-term debt held by the Company are either refinanced as these come to maturity, or the margin on these facilities 
moves in line with the ratio of the Group’s net debt to adjusted EBITDA. In either scenario, the Company reviews whether the debt is accounted 
for as a modification or an extinguishment of the liability. A substantial modification should be accounted for as an extinguishment of the existing 
liability and the recognition of a new liability. A non-substantial modification should be accounted for as an adjustment to the existing liability. 
Both the quantitative and qualitative aspects of the modification are taken into account to ascertain whether the modification is substantial 
and these can include the change in covenants, repayment dates and the effective interest rate. If modification accounting is adopted, the 
carrying value of the existing liability is adjusted for fees paid or costs incurred and the effective interest rate is amended at the modification 
date. If extinguishment accounting is adopted, the existing liability is de-recognised and the new or modified liability is recognised at its fair 
value, the gain or loss equal to the difference between the carrying value of the old liability and the fair value of the new one is recognised, any 
incremental costs or fees incurred and any consideration paid or received is recognised in profit or loss and a new effective interest rate for the 
modified liability is calculated and used in future periods.
Derivative financial instruments
From time to time, the Company enters into derivative financial instruments, such as interest rate swaps, to manage its exposure to interest  
rate risk.
Derivatives are initially recognised at fair value at the date a derivative is entered into and are subsequently re-measured to their fair value at 
each balance sheet date. A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative fair value 
is recognised as a financial liability. The resulting gain or loss is recognised in the consolidated income statement immediately. A derivative 
is presented as a non-current asset or non-current liability if the Company has an unconditional right to defer payment beyond 12 months. 
Otherwise derivatives are presented as current assets or liabilities.
As part of the incorporation of Smartbox Holdings, the Group has granted the non-controlling interests the option to request the Group to 
acquire some or all of their shares in Smartbox Holdings Limited. The Company recognises the liability for this put option on a net basis as it  
is not own equity.
(j) Dividends on shares presented within shareholders’ funds
Dividends unpaid at the balance sheet date are only recognised as a liability at that date to the extent that they are appropriately authorised  
and are no longer at the discretion of the Company. Unpaid dividends that do not meet these criteria are disclosed in the notes to the  
financial statements.
Notes to the Company Financial Statements
continued
168
169
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

32. Accounting policies continued
(k) Merger reserve
The merger reserve represents the premium arising on the ordinary shares issued as consideration for the acquisition of shares in another 
company (‘merger relief’).
Merger reserve
2021 
£000
2020 
£000
Opening balance 1 October 
125,842
125,536
Issue of shares (see Note 26)
–
306
At 30 September
125,842
125,842
33. Dividends
The aggregate amount of dividends comprises:
2021 
£000
2020 
£000
Interim dividend paid in respect of prior year but not recognised as liabilities in that year  
(4.0p per share, (2020: 3.75p per share))
4,525
4,093
Final dividend paid in respect of the prior year (8.75p per share, (2020: 7.95p per share))
9,906
8,913
Aggregate amount of dividends paid in the financial year (12.75p per share (2020: 11.70p per share))
14,431
13,006
The aggregate amount of dividends proposed and not recognised as liabilities as at the year end is 14.1p per share, £10,482,790 (2020: 12.75p 
per share, £14,000,000).
34. Investments
Shares in Group 
undertakings 
£000
Cost and net book value
At 1 October 2020
399,859
Acquisitions (see Note 5)
2,922
At 30 September 2021
402,781
35. Trade and other receivables
2021 
£000
2020 
£000
Amounts owed by Group undertakings
224,738
235,402
Amounts owed by the Employment Benefit Trust
11,303
11,769
236,041
247,171
These balances owed by Group undertakings accrue intercompany interest at a rate of 3% per annum and are repayable on demand. Please refer 
to note 1 and the statement on going concern. Intercompany financial assets were assessed by management for impairment using the expected 
credit loss model under IFRS 9. The assets are considered to have low credit risk and consequentially an immaterial credit loss was assessed and 
no provision has been made.
36. Interest-bearing loans and borrowings
This note provides information about the contractual terms of the Company’s interest-bearing loans and borrowings. For more information 
about the Group’s exposure to interest rate risk, please see note 29 in the Group accounts.
Terms and debt repayment schedule
Currency
Nominal interest  
rate (%)
Year of  
maturity
Book value
2021
£000
Book value
2020
£000
Term loan
£
2.04 (2020: 2.25)1
2023
158,948
160,031
Term loan
£
2.04 (2020: 2.50)1
2023
158,948
158,561
Revolving credit facility term loan
£
2.04 (2020: 2.75)1
2023
–
–
317,896
318,592
¹	 The margin on the facilities is stated at the current rate and can change between 1.50% and 3.25% based on the ratio of the Group’s net debt to adjusted EBITDA.
The facility is a term loan of £322m and revolving credit facility of £25m to a group of banks comprising Barclays Bank PLC, HSBC UK Banks 
PLC, Santander UK PLC, AIB Group (UK) PLC, Clydesdale Bank PLC, Credit Suisse AG, Lloyds Bank PLC and National Westminster Bank PLC and 
is stated net of loan finance costs in accordance in IAS 23. During the course of the year, the Group completed the extension of the Term Loan 
A facility of £161.2m which will now mature in August 2023. The margin of the facility and covenants remain unchanged, reflecting the highly 
cash-generative nature of the business and deleveraging profile. In addition, both the Group’s loan and interest rate swaps have migrated to 
Compounded Daily SONIA as the reference rate. This has resulted as a non-substantial modification and accounted for as an adjustment to  
the existing liability and not an extinguishment.
37. Trade and other payables
2021 
£000
2020 
£000
Amounts due to Group undertakings
37,259
42,769
Other creditors
3,383
5,642
40,642
48,411
These balances due to Group undertakings accrue intercompany interest at a rate of 3% per annum.
38. Contingent liabilities
As per note 31, the Company have taken the audit exemption for a number of subsidiaries by virtue of s479A of the Companies Act.  
A Parent Company guarantee has been provided for these entities under s479C of the Companies Act.
39. Called-up share capital
2021 
£000
2020 
£000
Allotted, called up and fully paid:
113,327,459 (2020: 113,173,992) ordinary shares of 0.5p each
566
565
53,402 deferred shares of 0.5p each
0
0
566
565
The holders of the ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at 
meetings of the Company. The deferred shares have no such rights. Details in respect of the movements in equity are given in note 26 to the 
Group financial statements.
Details in respect of the reserves are given in note 27 to the Group financial statements.
Notes to the Company Financial Statements
continued
170
171
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

40. Staff numbers and costs
The Company has no employees (2020: none) other than the Directors. Directors’ emoluments are shown on page 97.
41. Employee benefits
Defined contribution plans
The Company operates a number of defined contribution pension plans. The total Company expense relating to these plans in the current year 
was £nil (2020: £nil).
Share-based payments
There was no expense for share-based payments relating to the Company’s employees in the year (2020: £nil). There was a grant of shares to 
the CareTech Charitable Foundation in the previous year, which is accounted for as a share-based payment with a charge of nil (2020: £4.1m)  
to the income statement in the year.
The grants and related accounting treatment adopted by the Company is identical to that operated by the Group under IFRS 2 ‘Share-Based 
Payments’ (see note 25).
42. Related parties
The Company receives dividends from its subsidiaries according to their ability to remit them and received interest in intergroup loans. Other 
details of related-party transactions have been given in note 30 to the consolidated accounts.
Under FRS 101, the Company is exempt from disclosing key management personnel compensation and transactions with other entities wholly 
owned by the Company.
The Group reports certain non-IFRS performance measures, known as Alternative Performance Measures (‘APMs’). The Directors believe that 
they provide useful supplemental information for the readers of the Annual Report and, when read in conjunction with the IFRS financial 
information, assist in providing a balanced view of the Group’s financial performance and financial position.
In assessing its performance, the Group has adopted a number of APMs as the Directors are of the view that these will assist the readers of 
the accounts when understanding our performance relative to other companies in our sector and in the wider economy. These measures are 
not defined by IFRS and therefore may not be directly comparable with other companies’ adjusted measures. They are not intended to be a 
substitute for, or superior to, IFRS measurements of profit or earnings per share.
We set out below those APMs which management use in assessing its own performance and a reconciliation of those APMs to the statutory  
IFRS financial statements.
a) Underlying EBITDA
Underlying EBITDA is defined as Earnings Before Interest, Tax, Depreciation, Amortisation, ExSOP share-based payments charge and non-
underlying items (see note (b) below). There is no further intent to issue awards under the ExSOP scheme, these have historically been ad hoc 
awards and as such not considered a component of underlying EBITDA. Underlying EBITDA is considered the most relevant performance 
measure in our (and many other) sectors. We reconcile underlying EBITDA to the statutory measure of operating profit on the face of the  
income statement as below:
Note
2021 
£000
2020 
£000
Underlying EBITDA
100,485
90,932
Adjusted for:
COVID-19 income
6
2,692
2,550
Depreciation
13
(19,519)
(17,021)
Amortisation of intangible assets
6,14
(10,273)
(10,186)
Acquisition expenses
6
(759)
(545)
Sleep-in provision
6
11,777
–
Gain on bargain purchases
6
5,758
–
Other non-underlying items
6
(5,964)
(4,497)
COVID-19 expenses
6
(4,220)
(3,422)
Share-based payments’ charge
6
(473)
(4,449)
Operating profit
79,504
53,362
b) Non-underlying items
Statutory measures are adjusted to exclude those events or transactions that, in the opinion of the Directors, by virtue of unusual size or nature, 
or an infrequent/one off occurrence, distort the understanding of the performance for the year or comparability between periods. Such items 
are separately classified as non-underlying items in these accounts. The Directors are of the view that the underlying items will improve a 
reader’s understanding of the core performance of the businesses of the Group.
At the operating cost level, non-underlying items include expenses relating to the acquisition of new businesses; the integration of acquisitions 
and the reorganisation of the internal operating and management structure and redundancy costs; non-cash charges of amortisation of 
intangible fixed assets together with any impairment of intangible assets or goodwill; and any other items that may fit this definition. For the 
year ended 30 September 2021, a reversal of sleep-in provision and a gain on bargain purchase were included in the determination of operating 
profit. COVID-19 income and costs have been included as non-underlying operating profit for the years ended 30 September 2021 and  
30 September 2020. Please refer Note 6 for a detailed explanation as to why each of these items are considered non-underlying.
At the financial expenses level, non-underlying items include costs relating to derivative financial instruments and include the movements  
during the year in the fair value of the Group’s interest rate hedging arrangements which do not qualify for hedge accounting, together with  
the quarterly cash settlement and accrual thereof. These items are considered by the Directors to meet the definition of non-underlying items.
Notes to the Company Financial Statements
continued
Appendix: Alternative Performance Measures
172
173
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

b) Non-underlying items continued
The impact of current and deferred tax on each of these items are considered in the non-underlying section, in addition to the impact of 
deferred tax on account of the rate change.
We present a reconciliation of our underlying earnings to our statutory profit on a line by line basis including Operating profit, Finance expenses, 
Profit before Tax and Taxation as follows:
2021
2020
Note
Underlying 
£000
Non-
underlying 
£000
Statutory 
£000
Underlying 
£000
Non-
underlying 
£000
Statutory 
£000
Operating profit
80,493
(989)
79,504
73,581
(20,219)
53,362
Financial expenses
9
(12,158)
(1,112)
(13,270)
(13,928)
(1,611)
(15,539)
Profit before tax 
68,335
(2,101)
66,234
59,653
(21,830)
37,823
Taxation
6,10
(11,889)
(19,017)
(30,906)
(11,325)
553
(10,772)
Profit for the year
56,446
(21,118)
35,328
 48,328
(21,277)
27,051
c) Net debt
A key performance indicator for many readers of accounts is the level of net debt within the business. Net debt comprises cash net of all loans 
and borrowings as defined by the Group’s banking facilities. Accordingly, the Group provides information on its net debt which is reconciled  
to the statutory financial statements as follows:
Note
2021 
£000
2020 
£000
Net debt in the balance sheet comprises:
Cash at bank and in hand 
65,560
54,273
Bank loans
20
(317,896)
(317,122)
Shareholder loan
(1,758)
(1,833)
Lease and hire purchase contracts
14
(4,567)
(4,204)
Net debt at 30 September
(258,661)
(268,886)
d) Underlying earnings per share
Underlying earnings per share is calculated based on underlying profit for the year as calculated in note (b) above. This is reconciled to earnings 
per share in note 12.
e) Operating cash flows before non-underlying items
Operating cash flows before non-underlying items is calculated based on operating cash flows adjusted non-underlying cash flows as 
reconciled below.
Note
2021 
£000
2020 
£000
Operating cash flows before non-underlying items
96,594
94,222
Non-cash adjustment
903
–
Integration and restructuring costs 
6
(4,177)
(3,795)
Payment of charitable donations
6
(1,203)
(702)
COVID-19 receipts
6
2,692
2,550
COVID-19 payments
6
(4,220)
(3,420)
Payment of acquisition costs
6
(759)
(545)
Cash inflows from operating activities
89,830
88,310
Company Number 
04457287
Registered Office 
5th Floor 
Metropolitan House 
3 Darkes Lane 
Potters Bar 
Herts 
EN6 1AG
Directors 
Farouq Sheikh OBE	
(Group Executive Chairman) 
Haroon Sheikh	
(Group Chief Executive Officer) 
Christopher Dickinson	
(Group Chief Financial Officer) 
Mike Adams OBE	
(Executive Director) 
Karl Monaghan	
(Non-Executive Director) 
Jamie Cumming	
(Non-Executive Director) 
Prof. Moira Livingston	
(Non-Executive Director)
Solicitors 
Charles Russell Speechlys 
5 Fleet Place 
London 
EC4M 7RD
Ashurst LLP 
Broadwalk House 
5 Appold Street 
London 
EC2A 2HA
Nominated Adviser and Joint Broker 
Panmure Gordon and Co 
One New Change 
London 
EC4M 9AF
Joint Brokers 
Numis Securities Ltd 
10 Paternoster Square 
London 
EC4M 7LT
Auditor 
Grant Thornton UK LLP 
30 Finsbury Square 
London 
EC2A 1AG
Appendix: Alternative Performance Measures
continued
Directors and Advisers
Bankers 
The Royal Bank of Scotland PLC 
250 Bishopsgate 
London 
EC2M 4AA
Lloyds Bank PLC 
Large Corporate 
25 Gresham Street 
London 
EC2V 7HN
Santander Corporate Banking 
2 Triton Square	
 
Regents Place 
London 
NW1 3AN
HSBC UK Bank PLC 
60 Queen Victoria St 
London 
EC4N 4TR
AIB Group (UK) PLC 
Corporate Banking 
9-10 Angel Court 
London 
EC2R 7AB
Barclays 
Level 12 
1 Churchill Place 
London 
E14 5HP
Clydesdale Bank PLC 
138 New Street 
Birmingham 
B2 4JQ
Credit Suisse AG 
The Gate 
Dubai 
United Arab Emirates
Registrars 
Link Asset Services 
Northern House 
Woodsome Park 
Fenay Bridge 
Huddersfield 
West Yorkshire 
HD8 OGA
174
175
CareTech Holdings PLC  /  Annual Report and Accounts 2021
FINANCIAL STATEMENTS

Printed by Pureprint, a CarbonNeutral® Company certified to ISO 14001 
environmental management system.
100% of all dry waste associated with this production has been recycled.
This publication is printed on Arctic an FSC® certified paper produced mix 
sourced material, manufactured at a mill that has ISO 14001 environmental 
standard accreditation.
The paper is Carbon Balanced with World Land Trust, an international 
conservation charity, who offset carbon emissions through the purchase  
and preservation of high conservation value land. Through protecting standing 
forests, under threat of clearance, carbon is locked-in, that would otherwise  
be released.
CBP00019082504183028
176
CareTech Holdings PLC  /  Annual Report and Accounts 2021
With grateful thanks to Purple for advising  
on design accessibility.