Telecity to pay dividends
Data centre provider Telecity's full year results came in slightly ahead of expectations, and 2012 looks like being another strong year, with the group seeing strong demand across all of its markets.
Data centre provider Telecity's full year results came in slightly ahead of expectations, and 2012 looks like being another strong year, with the group seeing strong demand across all of its markets.
Revenue in 2011 rose 22.1% to £239.8m from £196.4m the year before, and slightly ahead of market expectations of £238.0m. Over 90% of the group's revenue is recurring.
Adjusted profit before tax rose 26.3% to £67.0m from £53.0m in 2010, more than a million quid above the £65.7m expected by the market.
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
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) improved by 27.2% to £106.2m from £83.4m, while adjusted diluted earnings per share (EPS) jumped 11.1% to 24.1p from 21.7p the year before, despite the company paying a full tax charge this time round. The market had been expecting EPS of 23.84p.
UK EBITDA rose 17.8% to £50.9m in 2011 from £43.2m in 2010 while the Rest of Europe EBITDA soared 37.3% to £55.3m from £40.2m the year before.
"We have entered 2012 in a strong position, with a solid opening order book and pipeline of new opportunities from new and existing customers. Demand for premium data centre capacity is strong across all of our markets and I am confident that 2012 will be another strong year for TelecityGroup," revealed Michael Tobin, Chief Executive Officer of Telecity.
The group is expecting to continue generating substantial operating cash flows, most of which will be invested in its capacity expansion programme, whether through acquisition or more organic means, but the company said it will find some money for its inaugural dividend payment at the interim results stage.
Initially, TelecityGroup intends to pay out a ratio of around one-fifth of adjusted EPS and it will seek to grow annual dividends at least in line with earnings, so on that basis, had Telecity been paying dividends this time round it would have paid out around 4.8p.
The acquisitive company, which splashed out on two acquisitions last year, said net debt was £164.0m at the end of 2011, up from £56.8m at the end of 2010.
jh
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
‘Inheritance tax insurance’ enquiries are soaring – but is it worth it?
Premiums for whole of life insurance can run to £5,000 a month to cover a £300,000 inheritance tax bill, with policies costing more the older you take them out.
-
MPs warn over Lifetime ISAs which could leave savers out of pocket
The Treasury Committee has highlighted confusion around the Lifetime ISA withdrawal charge, which risks consumers losing “a significant part of their savings”