LONDON (Alliance News) - Filtration-focused engineering firm Filta Group Holdings PLC hiked its dividend Tuesday after its half year profit jumped off the back of rising revenue and margins in a period of "strong" trading.
For the year ended June, pretax profit widened 13% to GBP1.0 million from GBP896,193 the year prior. This was after revenue rose 15% to GBP6.6 million from GBP5.7 million the year before.
Profit performance was helped by a improvement in operating leverage. Cost of sales grew at a more modest level to GBP3.2 million from GBP2.9 million the year prior, driving gross margins to 51% from 49% the year before.
Filta proposed a 0.72 pence interim dividend, up 11% from 0.65 pence the year prior.
"We have successfully completed a number of strategic initiatives during the first half of the year, including the disposal of our lower margin refrigeration business, the integration of GMG and the changed structure of our European activities, all of which will support higher margins and greater recurring revenue going forward," Filta Chief Executive Officer Jason Sayers said.
In August 2017, Filta acquired drain-related services firm Grease Management Ltd - also known as GMG - for GBP1.1 million. In January 2018, Filta Refrigeration Ltd was sold for up to GBP125,000.
"We have enjoyed strong trading through the group despite a weaker US dollar and have been particularly encouraged by the contribution now coming from GMG, as well as the strong response to our initiative in mainland Europe," Sayers added. "We continue to seek further growth opportunities through both acquisitions and the development of our existing businesses over the short, medium and long term. "
Shares in Filta were 6.3% lower at 224.00 pence on Tuesday.