17th Jun 2016 07:01
LONDON (Alliance News) - Record PLC, the specialist currency manager, on Friday said its balance sheet is strong enough to consider special dividends or other ways of returning capital to shareholders, as the company reported a fall in full-year pretax profit on higher expenditure due to a salary increase.
Pretax profit fell to GBP6.9 million in the year ended March 31, from GBP7.7 million a year earlier, as revenue remained stable at GBP21.1 million and administrative expenses rose to GBP14.1 million from GBP13.4 million. The increase in administrative expenses was mainly due to a 10% firm-wide salary increase implemented in May 2015.
Record maintained a total dividend of 1.65 pence for the year, and said it expects to maintain the payment at that level in the current financial year. Record will consider special dividend payments to shareholders.
"The board now considers the group's balance sheet and regulatory capital buffer sufficiently strong to support the consideration of returning at least part of any excess of future earnings per share over ordinary dividends to shareholders, potentially in the form of special dividends," Chairman Neil Record said in a statement.
Record said it is expects potential periods of elevated currency volatility as a result of the UK's June 23 referendum on whether to remain a member of the European Union. It is also looking ahead to the US presidential election in November.
"The business is well placed to face such challenging environments and to take advantage of the opportunities arising with a strong, committed team of professionals and a robust financial position," the chairman said.
By Samuel Agini; [email protected]; @samuelagini
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