21st Century, specialist CCTV supplier, has released an update on trading for its financial year to December 31, 2012.
It states initiatives to improve operational and overhead efficiencies are expected to yield a significant improvement in operating margin and profit after tax for the current year.
In the second half of 2012 the company secured a number of new orders and, subject to audit, pre-tax profit will be around £1.8m – 20% above last year. This profit would have been higher but due to changes in some bus manufacturer production schedules, fulfilment of certain orders which had underpinned management’s expectations for the second half will now not take place until early in the New Year. Assuming cash generation and profitability are maintained, it is the intention of the board to propose a dividend equivalent to at least one third of pre-tax profit.
The company has a solid platform of pipeline orders and potential new business to underpin continued growth in profit. This will be enhanced by the appointment of a Sales Director to the main board, the recruitment process for which is underway.
Chairman, Jan Holmstrom, said: “Despite difficult market conditions, we have continued to make good progress.”
