While the UK faces recession, the children's homes and foster care company CareTech today announced a surge in profits and a bumper payout to shareholders https://www.londonstockexchange.com/news-article/CTH/annual-financial-report/14778565

The company says trading "was particularly strong in the latter part of the year." So from the outbreak of the pandemic, business has boomed.

Local authorities now pay CareTech £430 million a year to care for the most vulnerable children and young people. This includes almost 2,000 in children's homes and more than 1,000 in foster care.

This company earned profits of £70 million from its children's homes last year and another £8.6 million from foster care.

Pre-tax profits have increase 20% to £60 million. In just one year.

It has increased dividend payments by 8% (current rate of inflation is 0.5%).

This is costing £13 million. Paid from fees provided by local authorities for the care of children and young people.

CareTech shares have recovered almost back to where they were before the pandemic.

While local authorities are struggling to keep the lights on, private business is making millions of pounds out of the care and protection of vulnerable children.

For information about CareTech and other for-profit providers of children's services, see @theNAFP and the Independent Children's Homes Association. Routinely consulted by government on care issues.