LONDON (Alliance News) - HR and payroll software company Bond International Software PLC announced Friday it has initiated a strategic review and has put itself up for sale as it reported higher pretax profit and revenue and a hiked dividend payout for 2014.
The company said it has now entered into an offer period under the UK Takeover Code, saying any discussions related to a merger with a third party or sale of the company will take place as a formal sale process.
Bond said that in spite of its robust performance in 2014 it is constrained by its size and the board has determined now is an appropriate time to evaluate its future strategy.
The decision came as the company reported a surge in pretax profit, up 78% to GBP2.9 million in 2014 from GBP1.6 million in 2013, as revenue increased to GBP40.1 million from GBP35.1 million. Recurring revenue rose by 9% to GBP25.5 million from GBP23.4 million.
The company is recommending a 2014 dividend of 2.5 pence per share, up 14% year-on-year.
"The prospects for the group look better than they have done for several years and now is an appropriate time to consider the options available for the future structure of the group. We look forward to a successful year in 2015 and will update the market on the options available to the company in due course," said Chief Executive Steve Russell.
Shares in Bond were up 6.9% to 109.00 pence on Friday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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