8th Jun 2016 09:17
LONDON (Alliance News) - Alternative Networks PLC Wednesday reported a fall in profit for its first half, but upped its dividend and said it expects to see a stronger weighting in terms of revenue towards its second half than it has in previous years.
The IT services company proposed an interim dividend of 6.2 pence, up from 5.5p the year before, and reiterated it expects to grow its full year dividend by no less than 10%.
Alternative Networks reported a pretax profit of GBP3.1 million for the half year to end-March, down from a pretax profit of GBP5.6 million the year before, as revenue fell to GBP69.3 million from GBP72.0 million.
Alternative Networks attributed its fall in revenue and profit to challenges in its Mobile business, hit by new carrier roaming tarriffs which had reduced roaming usage revenue. Revenue in its Advanced Solutions division was broadly flat, with an increase in recurring revenue offset by a decline in non-recurring revenue after a significant contract slipped into the second half.
"There have been market challenges to our Mobile business, over the past six months. However we have remained competitive, have continued to improve our offering to customers and win new customers. We have taken measures to mitigate the financial impact of changes to roaming tariffs and maintained our focus on becoming one of the UK's leading providers of IT managed services to UK businesses," said Chief Executive Mark Quatermaine in a statement.
"There are plenty of indicators to give us cause for optimism about the relevance and appeal of our offer and we will continue to drive organic growth. Our increase in the dividend reflects this confidence in the business and its cash generative nature," Quatermaine added.
Share in Alternative Networks were down 6.5% at 307.00 pence Wednesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
AN..L