- Full-year pre-tax profit up 30 per cent to £1mn
- Revenue of £2.7mn all recurring
- Net cash rises 6 per cent to £6.4mn (48p)
- Final dividend per share raised 8 per cent to 3.5p
- Enterprise valuation to operating profit multiple of six
Aim-traded financial software provider Arcontech (ARC:87.5p) flagged up its eye-catching annual results when the board materially increased earnings guidance in a pre-close trading update (‘Lock in this 9 per cent free cash flow yield’, 26 July 2023).
At the time, house broker FinnCap raised its adjusted pre-tax profit and earnings per share (EPS) estimates by 49 per cent to £1mn and 7.3p, respectively; the driver behind the subsequent 33 per cent share price rally. The directors didn’t disappoint investors with their outlook on results day.