Sureserve says strong trading allows it to consider ‘sustainable dividend policy’
Compliance and energy services company Sureserve today said its strong trading performance allowed it to “consider a sustainable dividend policy”.
The Aim-listed company maintains and installs boilers, and makes sure homes are energy efficient among other services.
Shares jumped nearly 12 per cent to 47p this morning.
Sureserve said it had been awarded 21 contracts with an annualised value of £16m since announcing its results for the six months to 31 March on 27 May.
Pre-tax profit for the first half more than doubled to £2.6m, up from £1.1m on-year, as revenue rose seven per cent to £109.6m.
The company also said today that it had strengthened its bidding teams in “anticipation of identifiable increased market opportunities”.
Sureserve said it paid off all its borrowings at the end of July and said it continues to have a £25m revolving credit facility at its disposal, along with an overdraft to fund any significant growth ambitions in the future.
The company said it “continues to show resilient growth in revenue, earnings and cash flows and looks forward to continuing its strong operational and financial performance during the rest of the financial year”.
Sureserve said it was confident that trading for the year to 30 September would be in line with management expectations.
Chairman Bob Holt said: “Sureserve’s performance in challenging circumstances highlights not only the significant commitment of our workforce, who have performed impressively throughout the pandemic, but also the strong operational and financial platform we have established.
“The group has been able to continue much of its work while adhering to strict government protocols and we’ve continued to provide the high-quality service we are known for.
“Sureserve’s strong cash position and newly strengthened bidding teams give us confidence in being able to make further progress in the order book this year and I look forward to bringing you further positive news in the future.”