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Octagonal subsidiary posts record EBITDA
AIM-quoted holding company Octagonal saw its wholly-owned trading subsidiary Global Investment Strategy improve both revenues and profit as a result of its ongoing work to improve efficiencies and reduce transaction costs in its last fiscal year.
Octagonal revealed on Thursday that GIS' was expected to post record earnings before interest, tax, debt and amortisation of £3.01m, 39% higher year-on-year, thanks to a 16% boost witnessed in sales to £6.53m and a strong net profit margin of 46%.
Elsewhere, GIS was expected to make an impairment charge in its current trading year against its remaining non-core legacy investment of £50,000 against its Level 1 investment, Inspirit Energy, reducing the carrying value of the investment to approximately £56,000.
John Gunn, Octagonal's chief executive, said, "This year has seen the continued benefit of the work we have done to streamline our operations. Margins have again improved year on year which has enabled us to deliver strong profit growth, whilst also increasing top line sales. This has come at a time of economic uncertainty, the impact of Brexit and a strengthening pound, which has a negative impact on our profits."
"The year ahead looks positive as we expect to continue seeing improvements in our operational capabilities and a greater contribution from our ancillary businesses," he added.
Octagonal's group-wide audited results were set to be announced "in due course".
As of 0910 BST, shares had shot up 20.49% to 3.19p.