With demand for data centre space growing fast, data centre operator Telecity reported impressive growth. That was helped by the acquisitions of Data Electronics and UK Grid - although those deals also helped push the debt pile from £56.8m last year to £164m.
Telecity announced a 17 per cent rise in power available to customers in the year to 68MW (mega watts) and management plan to increase this to 124MW. The group expanded fitted-out operating space by 11 per cent to 71,300 square metres as well. What's more, occupancy rates increased to 83.5 per cent from 79.6 per cent a year earlier - which allowed revenue per occupied square metre to increase 6 per cent to £4,395. Operating free cash flow rose from £75.6m to £84.7m, too, which was invested to support demand driven expansion - expansion-related capital expenditure rose from £49.2m to £109.9m.
Telecity will also begin paying dividends after the half-year figures - management intends to pay approximately 20 per cent of adjusted earnings and will seek to grow that at least in line with earnings. Investec Securities forecasts adjusted pre-tax profit of £84.2m for 2012, giving EPS of 31.6p, with a dividend of 7p.
TELECITY (TCY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 648p | MARKET VALUE: | £1.3bn | |
| TOUCH: | 648-649p | 12-MONTH HIGH: | 672p | 424p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 30 | |
| NET ASSET VALUE: | 150p* | NET DEBT: | 55% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 98 | -7.1 | -4.3 | nil |
| 2008 | 133 | 20.0 | 13.0 | nil |
| 2009 | 169 | 38.1 | 17.8 | nil |
| 2010 | 196 | 45.9 | 19.4 | nil |
| 2011 | 240 | 59.4 | 21.7 | nil |
| % change | +22 | +29 | +12 | - |
Ex-div:- Payment:- *Includes intangible assets of £136m, or 68p per share | ||||
