iEnergizer increase payouts as annual profit surges on higher margins

Writer,

iEnergizer Ltd shares jumped on Thursday after reporting strong annual growth, with the upward trend continuing since the year-end.

For the year ended March 31, the IT service management company said pretax profit surged 56% year-on-year to $83.2 million from $53.5 million.

Shares in the firm rose 11% to 498.00 pence each in London on Thursday morning.

This was largely down to success in securing higher margin work, as earnings before interest, tax, depreciation and amortisation margin increased to 36.8% from 32.1%. Ebitda increased to $97.3 million from $64.3 million.

iEnergizer also noted ‘excellent’ volume growth from existing customers, the acquisition of new customers as well as the adoption of new technology.

Revenue meanwhile grew 32% to $265.2 million from $200.3 million.

The firm proposed a final dividend of 13.8 pence, for an annual total of 21.92p, representing a 55% increase year-on-year from 14.12p.

‘We are delighted to report another strong performance by iEnergizer, achieving significant growth in revenue and exceeding market expectations for [earnings before interest, tax, depreciation and amortisation], due to the significant progress made by colleagues across all divisions, focusing on high margin revenue,’ commented Chair Marc Vassanelli.

The first three months of financial 2023 have continued the positive trend, the company said, with the extension of existing contracts and a ‘sizeable’ project pipeline in enterprise solutions.

Copyright 2022 Alliance News Limited. All Rights Reserved.