14th Nov 2013 13:40
LONDON (Alliance News) - Red24 PLC Thursday reported higher profits and revenues in the first half of the year, boosted by new contract wins.
The crisis management assistance company increased its interim dividend by 10% to 0.22 pence per share, and said the business continues to perform steadily, despite a challenging economic outlook.
Red24 said its pretax profit from continuing operations rose 12% to GBP457,000 in the six months to September 30, compared with a pretax profit of GBP409,000 in the same period a year earlier.
The group said that profits from discontinued operations came to GBP16,000, including GBP20,000 in profit on the disposal of the operations, compared to GBP24,000 from the operations in the same 2012 period.
Discontinued operations included its training services business, Arc Training International Ltd., which it sold to Linx International Ltd. in exchange for a 25% stake in Linx, another training company. Red24 said the merged training businesses are performing ahead of expectations but that the result were not included within its own in the recent period.
Red24 said profits were boosted by a number of new contracts in its accident and healthcare divisions, including contract renewal with US insurance giant American International Group.
Red24 reported a 17% increase in revenue from continuing operations, to GBP3.22 million, up from GBP2.75 million a year earlier.
Red24 said that incurred GBP15,000 in net finance costs during the period due to the acquisition of the freehold of its crisis response management centre in Cape Town, South Africa, and the finance costs arising from locally funded associated borrowings.
Shares in Red24 were up 5.4% Thursday morning, at 17.65 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright © 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
REDT.L