15th Jun 2020 10:44
(Alliance News) - Shares in Best of the Best PLC soared on Monday after the company upped its final dividend on a strong financial 2020 performance and declared a GBP1.9 million special payout.
Shares in the company were trading 39% higher at 1,129.00 pence each in London. The stock has more than tripled so far this year.
Best of the Best, which runs competitions online to win cars and other prizes, said revenue and profit for the year to April 30 were "ahead of our expectations" and benefited from the company's move to digital-only business.
For financial 2020, the London-based company's pretax profit fell 11% to GBP4.2 million from GBP4.7 million. Administrative costs to GBP6.3 million from GBP6.2 million. As well, in financial 2019, Best of the Best had recorded exceptional income of GBP4.6 million income from a VAT refund, which had been partly offset by an exceptional expense of GBP2.0 million.
Stripping out exceptional items, operating profit doubled to GBP4.2 million in financial 2020 from GBP2.1 million in financial 2019.
Revenue increased by 20% to GBP17.8 million from GBP14.8 million.
Chief Executive William Hindmarch said: "The transformation to becoming a purely digital business has been very successful, giving us more flexibility and focus. The financial results for the year also clearly reflect the benefits of this transition with increased operating margins, improved capital efficiency and cost savings."
Best of the Best declared a final dividend of 3.0 pence per share for financial 2020, up 50% from 2.0p paid a year ago.
In addition, the company said it will return GBP1.9 million via a special payout, returning 20p each share, as company "continues to be profitable, cash generative and benefits from a robust balance sheet".
On financial 2021, the company said sales momentum has been encouraging and ahead of management's original expectations and continued marketing activity is expected to drive revenue growth over the current financial year and beyond.
By Tapan Panchal; [email protected]
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