20th Mar 2019 07:43
LONDON (Alliance News) - TI Fluid Systems PLC hiked its final dividend Wednesday after 2018 profit jumped on lower costs, despite revenue dipping amid softening market conditions.
In 2018, pretax profit at the FTSE 250-listed liquid handling systems maker widened 37% to EUR217.1 million from EUR158.0 million the year prior. This was despite revenue slipping 0.6% to EUR3.47 billion from EUR3.49 billion the year before.
Profit performance was helped by a fall in finance costs and the non-recurrence of exceptional charges related to its listing. Finance costs fell to EUR78.8 million from EUR126.5 million the year prior. This was after TI Fluid Systems refinanced its borrowings, repaying high-interest rate notes to reduce interest expense by about EUR10 million per year.
Meanwhile, the comparison results for 2017 had been held back by a EUR40.2 million one-off charge related to its initial public offering in October of that year, at 255 pence per share.
"2018 was a great year for TI Fluid Systems," TI Fluids Chief Executive Officer William Kozyra said. "Despite a slight softening in global light vehicle production growth, we achieved strong organic growth, solid profit margins and free cash flow generation. The excellent progress delivered in executing our HEV and EV strategy in 2018, as well as our approach of continued and disciplined organic growth has positioned the group well for 2019 and beyond."
TI Fluids has focused its strategy on hybrid electric vehicle and electric vehicle markets, seeing this as an opportunity for "organic growth".
"We continue to work on new design and engineering thermal management and pressurised tank opportunities with our existing customers as the electric market continues to progress," Kozyra added. "We are confident that our business model will continue to deliver consistent, strong financial performance along with attractive returns."
TI Fluid proposed a 5.94 euro cents final dividend per share, up from 1.31 cents the year prior. For the full year, the firm will pay 8.96 cents from 1.31 cents the year before.
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