LONDON (Alliance News) - Tangent Communications PLC said Monday that pretax profit more than doubled in its full-year as its investment in its online business boosted revenues, causing the company to raise its dividend by 20%.
The marketing platforms and services provider said pretax profit for its full-year to February 28, 2014 more than doubled to GBP2.33 million, compared to GBP0.86 million last year. Revenues rose 11.3% to GBP27.03 million from GBP24.29 million.
Tangent said it was a strong trading year, with profits beating market expectations, and its cash balance looking healthy with dividends generated. The company boosted its proposed final dividend by 20% to 0.24 pence per share from the 0.20 pence per share last year.
The uptick in revenues was partially due to Tangent's growing online presence, it said, "We have the ambition to become a major player in the online retail print market, and this year... the proportion of revenues generated online increasing to 34%. This trend is expected to continue," said Timothy Green, Tangent's Chief Executive.
The online business is a big focus for the company, supported by a recent investment in a state-of-the-art print facility, which Tangent expects will allow it to accelerate the online side of the business, "We are poised to sell more of our existing product lines to an increasing customer base and launch new websites; and the goodprint acquisition gives us a foundation from which to expand into new consumer markets, added Green.
The company said it is in a solid financial position at the end of 2013/14, with the cash generation growth capability of the business supporting the 20% dividend increase.
Shares in Tangent were trading marginally lower at 9.20 pence per share, down 0.27% Monday afternoon.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.