Cambian posts a pre-tax loss of £3.5m for the six months to the end of June against a profit of £10.0m last time.
Revenues rose to £160.0m from £140.9m but adjusted EBITDA fell to £22.0m from £26.6m with margins of 14% agtainst 19% a year ago.
Chairman Christopher Kemball said: "The Group is benefiting from the remedial actions which we have taken with both our Children and Adult Services divisions, delivering a good first half performance compared to the second half last year.
"Our focus on maturing the existing portfolio is progressing well and we are seeing an increase in both occupancy levels and demand for our services.
"We are pleased with progress in our core Children's Services business where we see further opportunities ahead. We are close to concluding our review of strategic options to ensure the optimal future shape for the business and expect to make an announcement in due course.
"The second half has started well and the business is performing in line with the Board's expectations."
(LON:CMBN) Cambian Group Plc share price was +7.88p at 88.13p