The Imomart dividend policy, which has been in place for several years now, is based on the profitability of the business in the period. They have committed to a pay-out policy of up to 40% of the adjusted diluted earnings per share delivered in a financial year.
This year they paid an interim dividend of 2.60p (2019: 2.45p) which was paid in January 2020. They have now proposed a final dividend payment of 3.93p per share (2019: 5.01p) which would result in a total dividend for the year of 6.53p (2019: 7.46p) representing a pay-out ratio of 40% of the adjusted diluted earnings per share for the year. The Board has taken the decision to pay a final dividend to shareholders as a result of the recurring revenue nature of the Group, the level of operating cash which they now deliver and the low level of indebtedness within the Group. Should the impact of Covid-19 increase in the year ahead, the Board will keep the level of future dividend payment under review. However, it should be noted the Group has not, to date, utilised any of the government furlough schemes and therefore believes that there is no impediment in this respect to paying a dividend to shareholders.
Other financial highlights include:
Revenue up by 9% to £112.6m, with the majority of the growth derived organically in the year
Adjusted EBITDA benefitted by £3.0m from transition to IFRS 16 'Leases'
Adjusted profit before tax and adjusted earnings per share reflects over £1m annualised investment in sales engine and broader mix of revenue
Cash generated from operations in the year of £41.3m (2019: £39.1m before exceptional items) which retains the consistently strong profit-to-cash conversion ratio (95% conversion of adjusted EBITDA) (2019: 93%)
Year-end cash position of £15.5m (2019: £10.1m) with net debt of £57.6m (£37.3m pre the adoption of IFRS 16) (2019: £39.2m), at a comfortable level of 1.3 times