The group saw a strong increase in revenues of 16% to USD1.67 billion (USD1.44 billion), while gross margin increased from 11.3% to 11.4%. EBITDA increased by 32% to USD52.0 million (USD39.5 million), now 3.1% of revenue (2.7%). Operating profit increased by 44% to USD43.3 million (USD30.1 million). The 2006 operating profit includes charges of USD3.6 million relating to share- based payments. Headline earnings per share grew to 15.65c (12.02c). The group ended the period with net cash, after long-term and short-term debt, of USD83.3 million.
Dividend
The board plans to make an annual distribution to shareholders, subject to review.
Prospects
The group expects to continue to grow revenue and margins, with a larger contribution from its European operations. The continuing prudent approach to managing its cost base and tight controls of working capital should result in consistent and more predictable improvements in financial performance. Trading so far in the second half has been strong.
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