Connaught ups its dividend as profits increase
Support services group Connaught yesterday said that it had met expectations with a 39 per cent increase in full-year profit and that its expanding order book would provide good future earnings growth.
Connaught, which provides property services to owners and occupiers of buildings, posted a pre-tax profit of £42.5m for the year to the end of August, on revenue 19 per cent higher at £660m.
The company said it would pay a final dividend of 2.07p per share, giving a total for the year of 3.16p, up 18 per cent on the year before.
Connaught said it was benefiting from the economic climate and a drive among companies to cut costs.
“We provide services which are largely non-discretionary and essential, which have protected us from fluctuations in the economic cycle and government spending,” chief executive Mark Davies.
“It is not sexy stuff we do but it is essential.”
The group’s order book rose eight per cent to £2.8bn.
The shares gained two per cent yesterday to close at 435.50p, having lagged the FTSE All Share support services index by around four per cent in the last year.