LONDON (Alliance News) - Sepura PLC Tuesday hiked its interim dividend as revenues increased in the half-year ended September 27, despite its pretax profits being hit by acquisition costs, foreign exchange headwinds and increased expenditure in research and development and selling, marketing and distribution costs.
The digital radio products and systems company posted an interim dividend of 0.59 pence, up from 0.51 pence each in the previous year.
Sepura posted a pretax profit of EUR1.1 million, more than halved from EUR2.6 million in the previous year. Pretax profit was hit by a non-recurring cost of EUR245,000 from its acquisition of Portalify OY. Research and development costs increased to EUR8.4 million from EUR6.9 million as the company increased its investment in new products. Selling, marketing and distribution costs rose to EUR7.2 million.
The volatility of the EUR to GBP and EUR to USD exchange rates over the last two years had caused a EUR2.3 million adverse impact on results, Sepura said.
In the half-year ended September 27 the company posted revenue of EUR46.0 million, increased from EUR43.5 million in the previous year. Revenues were boosted by the acquisition of Portalify, Sepura said.
Shares in Sepura were trading down 6% at 132.50 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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