LONDON (Alliance News) - Connect Group PLC on Wednesday reported higher adjusted pretax profit in its last financial year, driven by the acquisition of parcel freight division Tuffnells for an initial GBP113.4 million completed in December 2014.
The specialist distributor, which operates with the four divisions of News & Media, Books, Education & Care and Parcel Freight, said it made a GBP56.5 million pretax profit when adjusted to exclude one-off costs and other items in the year ended August 31, as revenue grew to GBP1.88 billion from GBP1.81 billion.
The company lifted its dividend to 9.2 pence per share from 8.8p.
On a statutory basis, pretax profit fell to GBP29.0 million from GBP43.1 million, largely due to network and re-organisation costs, acquisition and disposal costs, and amortisation of acquired intangible assets.
As well as the first-time contribution from Tuffnells, Connect Group pointed to higher adjusted operating profit in News & Media and Books, excluding the prior-year profits from World Cup sales, while Education & Care was broadly flat for the year with a stronger second half.
"It has been a transformational year for the group. Profits were ahead of expectations, and we have made significant progress towards our medium-term strategic goals. The foundations for further growth are well established, with a clear strategy in each division enabling us to leverage the group's capabilities and strengths. We are better positioned than ever to continue growing the business and generating strong shareholder returns," Chief Executive Mark Cashmore said in a statement.
Connect said that recent trading "is in line with current management expectations", and that it is confident of the outlook for the current financial year and beyond.
Shares in Connect were up 5.9% at 156.75 pence on Wednesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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