LONDON (Alliance News) - Avesco Group PLC Thursday said it swung to an operating profit in its last financial year, as the restructuring of its three divisions started to pay off, and said the positive momentum had continued into the first quarter of the current year.
The provider of services to the corporate presentation, entertainment and broadcast markets reported an operating profit from continuing operations of GP868,000 for the year to end-September 2013, compared with the GBP8.4 million loss it reported a year earlier, as revenue rose to GBP126.4 million, from GBP124.0 million, and it cut operating costs to GBP45.7 million, from GBP51.9 million.
Restructuring costs rose to GBP5.7 million, from GBP4.8 million, but it had also made GBP3.3 million of one-off payments and bonuses in connection with a litigation settlement with Disney in the previous year.
Its pretax loss narrowed to GBP430,000 in the latest financial year, from a GBP9.9 million loss a year earlier, as a result of the lower exceptional costs, lower finance costs, and the improved profitability of its business units.
It raised its final dividend to 4.5 pence, from 4.0p, bringing the total dividend for the year to 6.0p, up from 5.0p, a move it said reflects its confidence its long-term outlook.
"This achievement was due to an outstanding performance in CTUS, a dramatic turnaround in profitability in Presteigne, and a reduction in losses in our developing CT Asia Pacific unit," Chairman Richard Murray said in a statement.
"The first quarter of the current financial year has continued the positive momentum from last year. We expect to see further benefits flow from the cost savings generated by the Group's restructuring programme, so that any "odd year" dip in profitability is minimised. With the restructuring programme now completed and substantial forward momentum in the businesses, we are able to continue our focus on increasing profitability, generating cash and growing dividends," he added.
Avesco shares were up 0.9% at 118.10 pence Thursday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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