11th Apr 2016 11:37
LONDON (Alliance News) - Nasstar PLC, the hosted managed and cloud computing services company, on Monday said it will pay a maiden final dividend of 0.045 pence per share after making a trio of acquisitions in a period of two years.
Nasstar intends to adopt a "progressive" dividend policy, depending on its free cash generating the investment required to drive revenue and profit growth.
Its accounts for 2015 showed a pretax loss of GBP1.3 million, narrower than the GBP1.9 million pretax loss reported in 2014. The loss was due to transaction costs of GBP257,000 and reorganisation costs of GBP41,000 relating to "data centre rationalisation and office consolidation".
Adjusted earnings before interest, tax, depreciation and amortisation rose to GBP2.9 million from GBP2.3 million, as revenue increased to GBP13.8 million from GBP11.2 million.
Nasstar's acquisition of VESK, a pure play hosted desktop provider in the UK, in October 2015, followed deals completed in 2014 for hosted desktop and managed services provider e-know.net and Kamanchi, an IT outsourcer and hosted desktop provider in the recruitment sector.
"The respective strengths of the acquired businesses have ensured that we have been able to unlock cost synergies and benefit from cross-selling opportunities. The resulting financial performance of the group is highly pleasing and greatly to the credit of all concerned," Chairman Peter Daresbury said in a statement.
Cost savings meant the rate of adjusted Ebitda growth of 27% was faster than the 23% increase in revenue, the chairman said. "With the integration of Kamanchi completed in the year we have now embarked on an enhanced marketing plan with a view to capitalising on what remains a clear market opportunity."
Daresbury said Nasstar's cash generation has been "very strong", and its net debt of GBP5.1 million at the end of 2015 was ahead of earlier expectations.
"Our four operating businesses provide us with a strong platform for continued organic growth which we will continue to augment through selective acquisitions. With a proven track record for identifying and integrating strategic acquisitions and a clear focus on the organic opportunity we look forward to 2016 and beyond with optimism," Chief Executive Officer Nigel Redwood said in a statement.
Shares in Nasstar were up 3.9% at 9.25 pence on Monday shortly after midday.
By Samuel Agini; [email protected]; @samuelagini
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