20th Jun 2019 11:55
(Alliance News) - Best of the Best PLC on Thursday reported a rise in annual profit and revenue ahead of the company's expectations, as its transformation into an online business "proves a success".
Best of the Best runs competitions online to win cars and other prizes.
For the financial year that ended April 30, the company recorded pretax profit of GBP4.7 million, which is sharply ahead of the GBP1.6 million reported in the previous financial year.
The company noted it recognised GBP4.5 million of exceptional income as a result of Best of the Best's successful claim for overpaid VAT in prior years. The company's operating profit before exceptional items increased 32% to GBP2.1 million from GBP1.6 million.
Best of the Best saw a revenue increase of 15% to GBP14.8 million from GBP12.9 million the year before. The company said its online sales accounted for 97% of its revenue in the period.
"I am pleased to report continued solid progress with an encouraging set of final results showing both increased revenues and profit before tax, both of which are slightly ahead of management's expectations. The transformation to become a pure online business is largely complete and has been a success, giving us more flexibility and focus, as well as efficiency and cost savings," said Chief Executive William Hindmarch.
During the period, Best of the Best exited from its two Gatwick airports sites and its Edinburgh and Manchester airport sites. The company now has only one physical site, at Birmingham airport.
The company said its airport and shopping centre sites "held back top line" growth. "The business is now much better placed to grow profitability and efficiently," the company added.
Best of the Best declared a final dividend of 2.0 pence per share, 33% higher than the 1.5p declared the year before.
"We continue to increase our marketing investment across all acquisition and retention channels and look forward to updating shareholders with further progress in due course," added Hindmarch.
Shares in Best of the Best were down 2.1% Thursday at 304.50 pence each.
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