Ensor boosts dividend as operating profit doubles

Shares in building materials supplier Ensor Holdings jumped almost 25 per cent after the company doubled both its half year operating profit and earnings per share (EPS) and boosted the interim dividend by 45 per cent.

Revenue for the period increased from £11.1m to £16.2m, while pre-tax profit came in at £1.1m, compared to £0.5m. EPS doubled to 2.8p year-on-year.

The dividend was increased to 0.4p from 0.275p the previous year.

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In a statement the group said: "These very pleasing results include the first full contribution by Technocover which has continued to improve since the acquisition of the company in January this year. The results for our other established businesses have been in line with our expectations, holding up well during an economically flat period.

"There are some signs of improvements in the economy as we start the second half of our financial year, but we are not relying on these signs and continue to work hard to maintain a 'tight ship'.

"Group cash flows continue to be excellent with cash of £1.22m being generated from operations. During the half year we have financed a pension scheme enhanced transfer value exercise, paid dividends, repaid loans and furthered our capital expenditure plans whilst reducing our gearing to 28% (2011: 34%)."

The share price rose 24.64% to 43p by 14:31.

NR