Adsure Services is fast becoming one of London’s dividend heroes. It’s certainly the Aquis Stock Exchange’s dividend king.
The internal audit and business assurance firm has hiked its interim dividend by a bumper 60% to 0.786p after gross profits surged 46% in the half-year period to 30th September.
Adsure Services has now paid or declared 2.266p in dividends since its IPO in 2023. This equates to around 11% of the company’s 20.5p current share price.
Higher profits were driven by a 19% jump in revenue and were achieved despite the company investing in ICT systems to support further growth. Revenue for the period increased to £5.1m from £4.3m in the same period a year prior.
The significant revenue increase resulted from providing existing clients with additional complimentary services, representing delivery on one of Adsure’s strategic pillars to drive growth.
“The Board is pleased to announce a period of significant growth for the Group, leading to a profitable performance at the interim stage. This success is attributed to the dedication of our staff and the compelling offerings we provide to our customers,” said Kevin Limn, Chief Executive Officer of Adsure Services PLC.
Providing an insight into how investors can expect Adsure to perform in their second half, CEO Kevin Limn pointed to an encouraging start to the period with strength in two leading business areas.
“The second half has started positively, and we are seeing strong momentum across our Risk & Assurance and Risk & Advisory divisions,” Limn said.
Sustainable dividend growth
Adsure Services has everything you want from an income share. Cashflows are reliable and recurring. The board has shown a propensity to pass increases in profit directly onto shareholders. These factors are key to making a share a dividend hero.
Adsure enjoys the reliability of revenues from long-term government-funded organisations, including NHS trust, emergency services, local government and housing associations. Contracts are typically between two and five years, providing clear revenue visibility to support future revenue growth.
In addition to reliable shareholder returns through increasing dividends, Adsure Services offers investors the growth opportunity of cutting-edge technology being developed with the assistance of an Innovate UK grant.
Utilising its deep understanding of government-funded processes at the heart of our everyday lives, Adsure Services has identified opportunities to further improve efficiencies with the use of artificial intelligence. Adsure is developing a proprietary AI large language model designed to help create fresh revenue channels and provide further efficiencies for their clients.