Financial highlights
Continuing organic growth across the Group
- Total sales growth of 9%
- Organic sales growth of 7%
- Acquisition of The Telecom Centre Limited (“Echo”) which contributed sales of £1.3m in September 2007
Adjusted profits before taxation increased by 27% due to improvements in operating margins from 8.6% to 9.8%, as the Group benefited from the scale of organic growth and continuing synergies from ICB were realised. Profits before taxation increased 31% to £7.6m
Excellent cash generation
- Free cash flow of £6.5m
- Strong cash conversion at 108% EBITDA
- The initial cash consideration of £11.5m for the acquisition of Echo was met from the Group’s cash resources
- Net cash of £3.4m (2006 :£8.5m)
Strong performance in mobile sales and gross profits
- Sales up 13% to £38.2m (2006: £33.9m)
- Gross profits up 16% to £11.7m, with increased margins of 30.7%
- Strong ARPU (monthly Average Revenue Per User) and low churn trends continued
Increase proposed in final dividend to 2.3p (2006: 1.83p), an increase of 26%
To view our full financial reports go to the reports and accounts section.
The annual report 2006/2007 has now been published and is available for download.