Solid Scandinavian business supports strong results at 21st Century Technology

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.

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.

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

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
China owns a lot more gold than it’s letting on – and here’s why
Gold

China owns a lot more gold than it’s letting on – and here’s why

In a world awash with money-printing, a currency backed by gold would have great credibility. And China – with designs on the yuan becoming the world’…
21 Apr 2021
Why investment advice could be about to get a lot cheaper
Investment strategy

Why investment advice could be about to get a lot cheaper

Vanguard, the world’s second-biggest asset manager, is launching its own cut-price financial advice service. It’s something the industry badly needs, …
20 Apr 2021