4th Mar 2015 08:43
LONDON (Alliance News) - Testing and calibration services company Exova Group PLC saw its shares rise in early trade on Wednesday after it reported a narrower loss for 2014 despite weaker revenue and it declared a dividend.
Exova said its pretax loss for the year as GBP23.7 million, compared to a GBP25.6 million loss in 2013, thanks primarily to a fall in financing costs to GBP43.6 million from GBP53.4 million.
The company, which floated on the stock market in April last year, said it will pay a 2 pence per share dividend, in line with the dividend policy it outlined when it floated.
Revenue ticked lower in the year to GBP274.9 million from GBP279 million, dragged back by the strength of sterling as constant currency revenue increased 4%. Exova said it saw good revenue growth in its Europe and Rest of World divisions, but its Americas business was hit by weakness in the aerospace and transportation segments.
"We are pleased to have delivered results which are in line with our mid-year guidance as this demonstrates the strength of our business model and our ability to adapt to changing market conditions," said Exova Chief Executive Officer Ian El-Mokadem.
"Looking ahead to 2015, we expect to deliver modest organic growth, good total growth and underlying margins broadly in line with 2014 even with the reduction in activity and uncertainty in global energy markets," El-Mokadem added.
Shares in Exova were up 3.8% to 151.25 pence on Wednesday morning, the best performer in the FTSE All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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