Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Best of the Best PLC on Thursday said it exceeded pre-pandemic figures for profit and revenue and announced a £6.3 million tender offer.
Shares in Best of the Best were up 24% at 487.00 pence on Thursday morning in London. Best of the Best is a London-based operator of weekly online raffle competitions.
The company reported a pretax profit of £5.1 million in the year ended April 30, down sharply from £14.1 million the previous year but up 22% against the £4.2 million the year before that.
Revenue fell 24% to £34.7 million from £45.7 million. The figure beat its pre-pandemic comparator of £17.8 million. BOTB called this comparison more appropriate, as the previous year had benefited from particularly favourable trading conditions.
‘Our ongoing profitability, financial performance and improved capital efficiency are largely a result of the decision to convert BOTB from a bricks and mortar business into an online only operator. In achieving this conversion well ahead of the pandemic, the company was able to benefit from its operational gearing and specific trading patterns experienced during this unusual period,’ it explained.
BOTB announced a tender offer at a price of 600 pence per share on Thursday, representing up to 11% of the company's shares and a 52% premium to its middle market closing price of 394 pence on Wednesday.
It explained at recent profitable trading had led to a surplus of cash on its balance sheet, which it doesn't require to fund its growth plans. As a result, the company decided to return this cash to its shareholders via the tender offer.
Regarding its new financial year, BOTB said trading had started in line with expectations. It acknowledged that the wider economic environment remains somewhat uncertain, but it nonetheless looked to the medium and long term with confidence.
The company declared a final dividend of 6.0 pence, up 20% year-on-year.
Copyright 2022 Alliance News Limited. All Rights Reserved.