8th Jun 2015 07:40
LONDON (Alliance News) - Crisis assistance company red24 PLC Monday reported a rise in pretax profit in its recently-ended financial year, despite losing its largest single contract, and said it sees significant expansion opportunities in Europe and Asia.
Red24 reported a 25% increase in pretax profit for the year ending March 31 to GBP1.1 million from GBP854,905, although revenue rose only slightly by 1% to GBP5.94 million from GBP5.88 million. It said revenue growth was achieved despite losing its largest single contract from HSBC Holdings PlC, as it responded quickly to reduce its fixed cost base and win new contracts.
Last week, red24 announced plans to achieve growth through acquisition by buying Singapore-based RISQ Worldwide Pte Ltd. The acquisition will allow red24 to establish a permanent presence in Asia, it said.
On Monday, the risk management firm said it has a good pipeline of new business and sees significant opportunities in Europe and Asia. "Whether the revenue lost can be fully recovered by organic growth in a single year remains to be seen, but we are pleased with the level of new business achieved thus far," the company said.
Red24 will pay a final dividend of 0.27 pence, up from 0.23p the year before, making a total dividend for the year of 0.50p, an 11% increase on the 0.45p paid the prior year.
"During this last year, we have shown that our business is both robust and flexible, and it is a tribute to our staff that we have been able to deliver record profits before tax, in what was a testing period. We have added new business contracts worldwide, improved our key products and strengthened our position in the competitive global business of crisis assistance. I am looking forward to the next six to 12 months for red24, and, having recently announced the acquisition of RISQ Worldwide, I believe it will be an exciting period for our business and a rewarding one for our shareholders," Chairman Simon Richards said in a statement.
Shares in red24 were trading up 2.5% at 20.50 pence early Monday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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