D4T4 Solutions FY pre-tax profits contract despite improved revenues

Data solutions provider D4T4 Solutions said on Tuesday that full-year pre-tax profits had contracted in the twelve months ended 31 March despite the firm posting improved annual revenues and gross profit margins.

D4T4 said pre-tax profits had slipped 11.88% to £4.45m on an adjusted basis and 38.78% to £3.0m on a statutory basis.

This decline in profits came even as the AIM-listed firm improved its gross profit margin from 60.7% to 62.4% and recorded a 4.6% year-on-year increase in revenues to £22.8m. Annual recurring revenues were up 11% to £10.6m.

However, while D4T4 said diluted basic earnings per share had slumped from 11.04p to 6.75p, the company still proposed a final dividend of 2.0p, up from its 1.9p final payment a year earlier, taking its total dividend for the year to 2.81p, slightly ahead of the 2.67p it returned to investors in 2020.

D4T4 ended the year with a cash position of £14.24m, up from £12.77m at the end of the prior year, and total assets of £41.9m, up from £38.9m.

Chief executive Pete Kear said: "Throughout FY21 we have continued to innovate; the recent addition of the fraud data platform to the Celebrus product family provides access to a growing $18.0bn risk and fraud market and demonstrates the strength of our creative and technical talent. We have also grown geographically, deepened our existing relationships with strategic partners and developed a robust pipeline of new business as demand for enterprises' digital transformation increases.

"We have entered the new financial year in a strong position after a record second half and are well positioned for continued delivery in the year ahead."

As of 1030 BST, D4T4 shares were down 10.50% at 353.51p.