11 September 2018 – interim results
Results for the six month period ended 30 June 2018 have been released. Revenues were £10.8m (2017: £10.7m) but prior year results included a one-off amount of £0.5m related to the London & Colonial acquisition. Profit before tax was £2.1m versus £1.9m on a like-for-like basis. All of the Group’s trading operations performed in line with management expectations. The recurring revenue stream continues to grow and reached 79% (2017: 74%) of total revenues. Cash and cash equivalents at 30 June 2018 were £18.8m (30 June 2017: £14.7m). As significant proportion of this balance forms relates to regulatory and solvency requirements, which as at 30 June 2018 this was approximately £12m. In addition, there are also working capital requirements. However, cash generated from operating activities was £2.6m (2017: £4.1m). An increased interim dividend of 0.7p per share (2017: 0.6p) was declared. The interim dividend is expected to be paid on 15 November 2018 and the ex-dividend date is 11 October. The shares look inexpensive and we keep our BUY rating.