3rd Dec 2024 11:24
(Alliance News) - Diales PLC shares rose on Tuesday after it announced increased revenue and profit for its latest year, with the firm's CEO hailing its "successful turnaround".
The stock was up 6.4% at 29.80 pence in London late on Tuesday morning.
The London-based consultancy for the construction and engineering industries, formerly named Driver Group PLC, said revenue from continuing operations rose 0.9% to GBP43.0 million in the year ended September 30 from GBP42.6 million the year before.
Diales, which announced plans in late October to discontinue its US operations due to "short-term staffing issues", also reported pretax profit totalling GBP916,000. This was up 0.5% from GBP439,000 the prior year. Gross profit rose 0.2% to GBP11.0 million from GBP10.8 million.
Diales will pay a total dividend of 1.5p per share for the year, unchanged from financial 2023. It declared a final dividend of 0.75p, also unchanged.
It noted that its GBP250,000 share buyback programme launched in June continues, saying it has so far repurchased 810,000 shares for around GBP200,000. Diales said it will "review the potential to allocate further cash to [buybacks]" once the current programme is concluded.
The company also said it is "actively considering" various acquisition opportunities.
"During financial 2024, the group realised an increase in both revenue and profitability," commented Chief Executive Officer Mark Wheeler. "This is a result of the strategic actions taken last year and the successful turnaround, strengthened by the delivery of the first year of the four-year integrated transformation strategy.
"In particular, the brand consolidation to Diales, completed in July 2024, has been well received by clients and staff alike, around the world."
Looking ahead, Wheeler added: "I am pleased to report the board has agreed to return to market guidance, signalling our confidence in the future prospects of the group."
Speaking of future prospects, Wheeler wrote that Diales has entered the current financial year "with a strong pipeline of leads, giving confidence for financial 2025" and is "now exceptionally well positioned to meet the challenges and exploit the opportunities" heading its way.
He also noted that "Both [US and UK] incoming governments have publicly stated their commitment to investment in infrastructure and, in the US, to energy. In these markets and other adjacent ones, there are opportunities for the advisory services provided by Diales."
By Emma Curzon, Alliance News reporter
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