LONDON (Alliance News) - Premier Technical Services Group PLC hiked its dividend Wednesday after 2017 underlying earnings and revenue grew strongly and 2018 started well, despite reporting profit narrowing amid exceptional costs.
In 2017, pretax profit narrowed 31% to GBP1.8 million from GBP2.6 million the year prior. This was despite revenue at Premier - which provides specialist services such as steeplejack, electrical earthing and sprinkler systems - rising 35% to GBP52.9 million from GBP39.2 million the year before.
Profit performance was held back by a rise in exceptional items to GBP8.3 million from GBP4.7 million the year before. This was after restructuring costs, acquisition-related contingent payments and director share option grants all rose in the year.
On an adjusted basis - excluding exceptional items - pretax profit rose 36% to GBP10.2 million from GBP7.5 million the year prior.
Premier proposed a 0.80 pence per share final dividend, up 14% from 0.70p the year before. For the full year, the dividend rose 14% to 1.60p from 1.40p the year prior.
"PTSG delivered a record performance in 2017, driven by strong organic growth and a number of highly successful acquisitions, including the largest acquisition made since the Group's IPO in February 2015," Premier Chairman John Foley said. "During the year the group took steps to diversify and reorganise the business, to further strengthen its foundation for future growth.
"Trading in 2018 has started well," Foley added. "We continue to review a number of acquisition opportunities and the board is confident that the group's positive organic revenue and profit momentum will continue throughout the year."
Shares in Premier were 5.5% lower at 172.00 pence on Wednesday.
