LONDON (Alliance News) - SafeCharge International Group Ltd Tuesday said first-half pretax profit increased more than 4.5 times, prompting it to bring forward its first dividend due to what it called a "strong" performance.
The group said it will pay an interim dividend of 2.88 US cents per share, or about 40% of adjusted EBITDA. It expects to follow its policy of paying out up to 50% of adjusted EBITDA by way of total dividends for the full year.
At the time of raising USD125.0 million before expenses in its April initial public offering, SafeCharge had said it intended to declare a final dividend for the 2014 financial year, with a policy of paying out up to 50% of adjusted earnings before interest, tax, depreciation and amortisation to shareholders.
In addition, SafeCharge, which provides payments processing, risk management and IT services to online businesses, said trading has continued to be strong since reporting in June that it expected revenue and EBITDA to be "materially" ahead of then market expectations in the current financial year. The group said Tuesday that it expects results for 2014 to be ahead of current market expectations.
The news came as SafeCharge reported a USD5.6 million pretax profit in the six months ended June 30, compared with USD1.2 million in the corresponding period last year.
Revenue, which is made up of commission fees for payment processing and risk management services, as well as sales of online shopping applications and related services, increased by 77% to USD33.4 million.
Operating costs, including USD3.8 million for the group's IPO, increased to USD14.8 million from USD10.1 million, mainly due to higher salaries and employee expenses.
Non-Executive Chairman Roger Withers said the first-half of 2014 was a landmark period for the group.
"We completed a successful, oversubscribed IPO that was strongly supported by blue chip institutional investment funds and operationally, the business performed strongly, exceeding management and market expectations," Withers said in a statement.
"We gained a number of significant new clients and post the period end secured a major advance with the award of principal member status for merchant acquiring by VISA Europe. This significantly complements the MasterCard membership approved in 2013 and enhances the company's status as a leading global business in the expanding payment processing arena," Withers added.
SafeCharge shares were Tuesday quoted up 3.5% at 224.00 pence per share.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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