Telecity's (TCY) shares rose over 4 per cent after the computer data centre provider revealed that it had boosted full-year operating profit by 29 per cent to £84.2m. Management delivered on its pledge to pay a final dividend of 5p per share, too - following the maiden dividend payout at the half-year stage.
That strong performance reflects the robust demand for internet-related content and a majority of the organic growth was driven by new or extended orders from its existing customer base. The group's physical occupancy rate did fall from 83.5 per cent to 79.6 per cent, but this reflected a 26 per cent increase in power capacity to 86MW. That capacity is set to rise further as well, with total announced capacity up 8.9 per cent to 135MW. In fact, a combination of price increases and more power sold to customers in existing space, meant that revenue per occupied square metre rose 3.1 per cent to £4,531.
Net debt did jump from £164m to £254m, reflecting the heavy investment in capacity expansion. But, with the exception of any acquisitions, debt isn't expected to rise further - management is committed to funding further expansion through existing operating cash flows.
Numis Securities expects pre-tax profit for 2013 of £93.3m and EPS of 35.2p (31p in 2012).
| TELECITY (TCY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 863p | MARKET VALUE: | £1.74bn | |
| TOUCH: | 861-863p | 12-MONTH HIGH: | 964p | LOW: 635p |
| DIVIDEND YIELD: | 0.9% | PE RATIO: | 30 | |
| NET ASSET VALUE: | 177p* | NET DEBT: | 71% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 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 |
| 2012 | 283 | 76.1 | 29.1 | 7.50 |
| % change | +18 | +28 | +34 | - |
Ex-div: 13 Mar Payment: 19 Apr *Includes intangible assets of £151m, or 75p a share | ||||
