4th Jun 2014 11:28
LONDON (Alliance News) - Alternative Networks PLC Wednesday said it was on track to meet its full-year expectations, and raised its interim dividend, as it posted a decline in pretax profit in the half year to end-March.
The IT services and communications company posted an interim dividend of 4.9 pence, up from 4.4 pence. It reiterated its guidance that its full-year dividend will be no less than 14.3 pence, a minimum increase of 10% from the previous year. It expects its annual dividend growth should move towards 15% in 2015.
The company posted a pretax profit of GBP4.6 million, down from GBP5.5 million, as revenue rose to GBP63.0 million from GBP55.3 million, although this was offset by higher operating costs and exceptional costs relating to acquisitions.
Alternative Network said its revenue had been bolstered by its January acquisitions of Intercept IT Ltd and Control Circle Ltd. The two acquisitions contributed GBP6.5 million during the year.
However, these acquisitions also led to one-off costs totalling GBP2.6 million.
Alternative Networks said it had continued to increase its share in the mobile market, leading to an 8% growth in mobile revenues, although the fixed line market continued to declined as expected, with revenues declining 8%.
In the company's Advanced Solutions business, revenues rose 43%, boosted by Intercept IT and Control Circle, and contract wins with universities.
The company said that it remained confident it would see continued growth in the second half of the year, allowing it to meet full-year expectations.
Shares in Alternative Networks were trading up 1.8% at 477.76 pence Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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