Sureserve mulls 'sustainable dividend policy' amid strong trading

Compliance and energy services group Sureserve said on Wednesday that it was now considering a "sustainable dividend policy" following "resilient growth" in revenue, earnings and cash flows so far in 2020.

Sureserve said its strong trading performance over the last 12 months had led it to consider paying dividends, which were "more than adequately covered" by significant earnings per share and regular recurring cash flows.

The AIM-listed group also highlighted that at the end of July, it had paid off all its borrowings and continued to have a £25.0m in recurring cash flows and an overdraft at its disposal to fund any "significant growth ambitions".

Sureserve added that it had been awarded 21 new contracts since the release of its interim results in late-May, with an annualised value of £16.0m, adding £40.0m to its order book and taking it to a seasonal high.

Despite challenging circumstances stemming from the Covid-19 pandemic, the firm said it remained confident that its financial performance was strong and that trading for the financial year ending 30 September would be in line with management's expectations.

Chairman Bob Holt said: "The Group has been able to continue much of its work while adhering to strict government protocols and we've continued to provide the high-quality service we are known for.

"Sureserve's strong cash position and newly strengthened bidding teams give us confidence in being able to make further progress in the order book this year and I look forward to bringing you further positive news in the future."

As of 0945 BST, Sureserve shares were up 4.95% at 44.08p.