LONDON (Alliance News) - Maintel Holdings PLC Monday proposed a 33% increase in its total dividend for 2014, and pledged to grow its dividend further in 2015, as it posted a rise in pretax profit, boosted by acquisitions.
The telecoms and data services company proposed a final dividend of 11.6 pence, taking its total dividend up 33% to 20.9 pence from 15.7 pence a year before. It also reiterated its plan to raise its dividend to around 50% of adjusted earnings per share by the end of 2015.
Maintel posted a pretax profit of GBP3.8 million, up from GBP3.6 million a year before, as a rise in revenue to GBP41.9 million from GBP31.1 million helped offset higher administrative expenses related to its acquisition of Proximity Communications Ltd last October.
Stripping out exceptional acquisition costs and amortisation, pretax profit rose to GBP6.1 million from GBP5.2 million.
Revenue growth was boosted by the incorporation of acquisitions, and excluding these acquisitions revenue declined 1%. In its mobile division, revenue rose 12%, as an increase in connection numbers helped offset a decline in customer numbers as Maintel refocused its customer base towards larger, more profitable customers.
Network services revenue rose 3%, mostly driven by a 29% increase in data revenue.
Maintel said it remains open to further acquisitions "should they provide clear value to shareholders".
"We have experienced a significant year in the group's development, and we look forward with confidence to building on that in 2015," said Chairman John Booth in a statement.
Shares in Maintel are trading up 5.1% at 670.00 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Maintel (MAI)
