21st Apr 2015 07:17
LONDON (Alliance News) - CDialogues PLC saw its shares rise strongly early Tuesday after it reported an 89% increase in pretax profit in 2014 as revenue doubled on the back of strong growth in client numbers and geographical expansion, and the company said strong cash generation meant it could pay a maiden dividend.
The provider of mobile marketing products to mobile network operators, which listed on AIM last June and predominantly operates in the Middle East, reported a pretax profit of EUR2.6 million for 2014, up from EUR1.4 million in 2013, as revenue jumped to EUR9.9 million, from EUR4.6 million. Over three-quarters of its revenue came from subscription-based charging.
Its free cash flow also more than doubled in 2014 to EUR1.2 million, from EUR0.6 million in 2013, and it had net cash of EUR2.4 million as of December 31, up from EUR0.6 million a year earlier. It therefore declared a maiden dividend of 2 pence a share.
"We started this year well and have good revenue visibility based on our current contracts. Our pipeline remains strong and by adding new geographies and customers we continue to further diversify our client base. We remain committed to continuing the expansion trend seen during 2014 by further expanding our geographical footprint and investing in our core technology," Chief Executive Pale Spanos said in a statement.
"We continue to generate strong levels of free cash flow increasing considerably our capacity for further growth. We are confident that we will maintain the momentum and further strengthen our balance sheet," he added.
CDialogues said it delivered a total of eight mobile marketing projects in five countries in 2014 to a total subscriber base of 35 million customers in the Middle East. These projects attracted more than 5.5 million unique subscribers and generated total gross billings in excess of USD50 million, it said.
Cdialogues shares were up 14.3% at 300.00 pence early Tuesday, making it one of the best-performing stocks on the AIM All-Share index on the day.
By Steve McGrath; [email protected]; @stevemcgrath1
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