LONDON (Alliance News) - Servoca PLC said Thursday its annual year results were in line with expectations, prompting the recruitment and services outsourcer to hike its dividend.
Servoca reported pretax profit of GBP3.5 million for its financial year that ended September 30, up 17% from GBP3.0 million the prior year. The company's revenue for the year was GBP69.2 million, up 18% from GBP58.8 million.
The company proposed a 0.35 pence per share dividend for the year, increased from 0.3p in 2015. Servoca reported its basic earnings per share for the year at 2.25p, up from 1.91p the year before.
Revenue growth was driven by Servoca's Recruitment business, which reported revenue of GBP54.4 million, increased from GBP43.6 million in financial 2015. The company's Outsourcing segment saw revenue dip to GBP14.8 million from GBP15.2 million.
Within the Recruitment business, Servoca said its Healthcare business grew strongly, as did its Criminal Justice segment, but Education faced a tougher second half. Meanwhile, in Outsourcing, the Security business expanded, but Domiciliary Care revenue and profit shrank.
"As stated in our recent trading update, we are pleased to report that the group has delivered results in line with market expectations. Our results for the year ended 30 September 2016 represent another significant improvement in the performance and profitability of the group. Our Healthcare recruitment businesses performed exceptionally well and their revenues increased to become the single largest area of group turnover," said Andy Church, chief executive officer of Servoca.
Shares in Servoca were down 5.0% at 19.00p Thursday.
By Adam Clark; adamclark@alliancenews.com
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