LONDON (Alliance News) - Motivcom PLC Thursday raised its total dividend for 2013 as pretax profit rose, although revenue declined as budget pressures facing its clients continued to hit the company's Meetings and Events business.
Motivcom said it was cautiously optimistic on its prospects for 2014, assuming there is no material change to the economic environment.
The company proposed a final dividend of 3.6 pence, taking its total dividend for the year up to 5.4 pence from 4.5 pence in the previous year.
Motivcom posted a pretax profit of GBP2.8 million in 2013, up from GBP2.5 million in 2012, despite seeing revenue decline to GBP96.0 million from GBP106.6 million, as it sales costs and administrative expenses also declined.
In the company's Motivation division gross profit rose 18%, it said, as programme activity developed well during the year. However, voucher and gift card volumes fell 3%, mostly due to one off voucher based promotions in early 2012. The company's prepaid MasterCard product Spree performed well, benefiting from the expansion of existing card programmes.
Gross profit in the Meetings and Events Management declined 18%, Motivcom said, due to continued budgetary pressures at clients, and lower-than-expected new business intake towards the end of the year. The division was reorganised under one brand following a strategic review.
Motivcom expects the division's gross profit for 2014 to be at a similar level. The company said it had invested in the Events division, although the anticipated upturn in the business has not yet happened. Motivcom said it remains cautious about this area of its business, although it noted that it has seen gradual recovery in the meeting booking market.
Shares in Motivcom were trading down 9.8% at 142.00 pence Thursday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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