FinnCap says Norcon full-year results support revenue and profit projections

Broker FinnCap commented on Tuesday’s final results from communication project management and outsourcing services provider Norcon (AIM: NCON), saying the report reflected strong growth in sales to established clients in the group’s core Middle East and South East Asia markets.

FinnCap noted the high level of Norcon’s 2010 revenue visibility and its reported “strong pipeline for organic growth,” making no changes to its 2010 PBT (pretax profits) forecast at US$12.2 million, while projecting a revenue growth of 15% and an increase in stated PBT to US$13.2 in 2011.

Norcon announced a strong set of results for the year ended 31 December 2009.  The company reported 16% revenue growth to US$78.2m (FY08: US$67.7m), net profit increased by 20% to US$7.7m (FY08: US$6.4m) and pro-forma earnings per share increased by 20% to US$0.18 (FY08: US$0.15). The company said that client retention rates remained strong at above 90%, helped by the growing demand for its services and existing relationships with core customers.

The company also highlighted its consistently strong performance over recent years, noting its five year (2005-2009) compound annual growth rates for revenue and net profit, of 14.5% and 35.3% respectively.

Yestarday, the company announced he completion of a placing to raise approximately £4.5 million before expenses, planning to use the money to pursue organic growth opportunities.

Norcon said today that it will pay the US$3.86 million dividend, or 8.5 cents per share, it flagged in its results statement to its shareholders in July 2010.

http://www.proactiveinvestors.co.uk/companies/news/14870/finncap-says-norcon-full-year-results-support-revenue-and-profit-projections-14870.html