1st Sep 2014 09:38
LONDON (Alliance News) - Avarae Global Coins PLC Monday posted a fall in pretax profit despite a rise in revenue for the full-year, hit by the cost of sales, and slightly reduced its dividend payout.
The company, which purchases, holds and sells rare and high quality coins, said pretax profit in the year to 31 March was down to GBP253,000 from GBP355,000 last year.
The fall came despite a rise in revenue in the period to GBP1.6 million from GBP1.1 million a year earlier, as its cost of sales increased to GBP1.3 million from GBP995,000 a year ago.
In the year, the company purchased GBP630,000 worth of coins, down from GBP1.2 million a year earlier, cutting the value of its coin portfolio at March 31 to GBP10.6 million from GBP10.9 million a year ago. The group said the drop in purchase value was down to a lack of available high quality pieces rather than a change in its strategy.
Avarae said it has proposed a full-year dividend of 0.15 pence per share, down from the 0.18 pence per share paid last year.
The company said it believes it is well-positioned as an alternative asset investment and said it remains optimistic on its future prospects given its healthy cash position and no debt.
Avarae shares were untraded Monday, quoted at 10.875 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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