Activists describe the profits of the UK’s largest children’s home provider as a “scandal”
Activists claim that the profits of the UK’s largest children’s home provider are a “scandal”.
Caretech increased its profits 140 percent to £ 42.3 million in the six months ended March 31.
Angry: Critics said Caretech is making huge 28.4 percent profit margins in its child services division from fees paid by troubled councils
Furious critics said it is making huge 28.4 percent profit margins in its child services division from fees paid by battered councils.
Activist Martin Barrow said: “This is a scandal. Wealthy investors benefit from looking after children and young people. ‘
The UK’s competition watchdog has launched an investigation into the sector amid concerns about rising fees from private companies.
Caretech said earnings “have increased due to continued investment,” and that the profit number has been flattered by non-underlying balance sheet adjustments.