(Alliance News) - iEnergizer Ltd on Tuesday posted a notable profit increase led by higher client revenue and contract wins, and declares dividend "for the first time in seven years".
Shares in iEnergizer were up 7.1% at 220.60 pence in morning trade.
The technology services and media solutions company reported a USD40.8 million pretax profit for its year to March 31, a sizeable 47% increase from USD27.8 million the year before.
Revenue from services climbed 12% to USD174.1 million from USD155.7 million, while other operating income more than doubled to USD3.0 million from USD1.2 million. This lifted total income from operations by 13% to USD177.1 million from USD156.9 million.
iEnergizer attributed this steep revenue rise to "increased revenue share from key clients; multi-year contract wins from existing clients; extension of a higher margin client's scope of work; and addition of several new clients; along with penetration into new markets through new product launches".
In April, after its year end, the company refinanced its GBP45.5 million term loan for another 5 years, giving it "dividend flexibility".
As a result of this, iEnergizer has proposed a 10.4 pence per share dividend for its financial year, having declared no dividend the year prior. It plans to adopt a progressive dividend from this point on.
"These results reflect substantial operational progress made across the business and our ongoing focus on improving the profit margins. As a result of this and successful refinancing of loan allowing dividend flexibility, we are announcing a dividend of 10.4p for the first time in seven years," said Chair Marc Vassanelli.
"With a solid foundation, strong operational execution, new sales initiatives, focused differentiated offerings, a healthy balance sheet, and the substantial opportunities for both organic and in-organic growth identified, the board has confidence that the company is well-set on its growth path as a unique, end-to-end digital solution enabler," Vassanelli added.
