Revenue from continuing operations in Scandinavia underpinned the bulk of international revenue generated by AIM-listed 21st Century Technology in the financial year ended December 31st.
The company, which provides public transport CCTV and other monitoring systems, unveiled strong financial results for the year showing the business had increased its pre-tax profit on continuing operations and secured a number of lucrative contract wins.
Profit before tax from continuing operations was up 24% to £1.8m from £1.5m in 2011. Earnings per share rose 14% to 1.45p from 1.27p a year earlier. A distribution of £3.3m by way of return of capital was made in July 2012, representing 3.5p per share.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Total revenue for the year amounted to £14m, of which £9.2m was generated in the UK and £4.8m from international operations. The bulk of international revenue was generated in Scandinavia, with £4.3m raised there followed by £336,000 in the Netherlands and £62,000 in the Czech Republic.
Operational highlights included a contract worth £3.3m awarded by Arriva in Scandinavia, a contract worth £1.0m awarded by CrossCountry Trains in the UK and the extension of the Arriva UK Bus Preferred Supplier Contract.
The group said that cash at bank currently stands at £2.75m and a maiden dividend of 0.7p per share was to be proposed at the forthcoming annual general meeting.
Company Chairman, Jan Holmstrom, said: "21st Century has demonstrated strong sales in CCTV and EcoManger despite a weak economic background. The company has a growing pipeline, which is second half weighted."
Holmstrom added: "I am pleased to report our continued and growing expansion into Europe with the company now active in eight countries. We have high quality products, established and strong partnerships, backed by a sound and liquid balance sheet. The board remain confident that the footprint of the company can be strengthened and expanded during 2013.
"The proposed dividend reinforces the board's confidence to return value to our shareholders and its focus on growth and cash generation in 2013 and beyond. Looking forward, the board have adopted a progressive dividend policy and will seek to distribute at least a third of its pre-tax profit, where our anticipated cash generation and investment requirements so allow."
21st Century Technology's share price was up 10.19% to 14.88p at 11:02 on Tuesday.
MF
