22nd Jan 2019 13:28
LONDON (Alliance News) - Sureserve Group PLC on Tuesday said it swung to profit in its most recently ended financial year, supported by a cost-reduction programme and a strong performance by its Compliance division, but it halved its annual dividend.
The stock was trading 8.2% higher on Tuesday afternoon at 26.50 pence a share.
Sureserve was formerly known as Lakehouse PLC, but changed its name in October following the divestment of its Construction unit.
The energy support services provider said it swung to a pretax profit of GBP2.0 million in the year to the end of September 2018 from the GBP5.6 million loss reported the year prior, as revenue rose by 5.1% to GBP190.8 million from GBP181.5 million.
Revenue in the Compliance division increased by 12% to GBP116.3 million from GBP104.3 million reported in financial 2017. However, revenue in Energy Services decreased by 1.6% to GBP77.7 million from GBP79.0 million.
Operating expenses fell 3.9% to GBP19.6 million from GBP20.4 million in the year prior, helped by cost reduction programme.
The company has proposed a final and total dividend for the year of 0.25 pence per share, halved from the 0.50p paid for 2017.
In 2016, the company's annual dividend totalled 1.5p. At the time, Sureserve said it is looking to maintain a dividend, which recognises shareholder need, whilst retaining sufficient capital for future growth.
On Tuesday, Sureserve said it will consider an interim dividend based on its trading performance later in the year.
"I am pleased to report a strong set of results for Sureserve following a transformational year for the group. We have streamlined our operations, focusing on our industry-leading Compliance and Energy Services businesses which are profitable and deliver significant cash generation," said Chair Bob Holt.
"I am pleased to announce that the group has started the year positively and ahead of management expectations," added Holt.
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