Operating profit up 196 per cent at Avesco following stellar year

AIM-listed corporate services provider Avesco has posted strong annual results for the year ending September 30th, buoyed by significant Olympics-related turnover.

The company, which supplies services to the corporate presentation, entertainment and broadcast markets disclosed that operating profit was up 196% to £4.5m. Revenue was up 14% to £143.5m from £125.5m a year earlier.

The group's trading profit was up 217% to £7.4m and trading Earnings Before Interest Tax Depreciation and Amortisation jumped 34% to £27.1m.

The main driver of growth in the year came from the group's Creative Technology business which generated revenues of £95.5m, of which the Olympics generated revenue of £6.5m.

Avesco provided services to Panasonic at many of the Olympic venues and multiple services at other venues including the opening and closing ceremonies, the Olympic torch relay and the Athletes' Village.

Richard Murray, Chairman of Avesco, commented: "It is very satisfying to be able to report on a highly successful year for the Avesco Group. The staging of the London 2012 Olympic Games and Paralympic Games on our doorstep in the UK has been an undoubted benefit. However, even excluding the impact of these events, our underlying growth has been substantial and gives us confidence for the future".

He added: "We have gained considerable forward momentum over recent years, despite the uncertain economic situation around the world. We shall continue to seek to generate cash, grow dividends for our shareholders and ensure that our balance sheet remains strong."

Avesco's share price was down 0.87% to 171.50p at 09.22 on Thursday morning.

MF