Avesco shares jump as profits hit 14-year high

11th Jun 2015 09:20

Avesco Group, a provider of services to the live events, broadcasting and entertainment markets, saw its shares jump by nearly a third on Thursday after swinging into profits during the first half.The group said its half-year results exceeded its expectations, with revenues rising slightly by 1% to £66m despite it scaling down its restructured business and a lack of major events during the period.After reporting a pre-tax loss of £1.1m same time last year, the group managed to move into profits of £4.6m - the highest level in 14 years.Revenues in its core creative technology division jumped from £2m to £51.6m, driven by a strong performance in the US and the elimination of losses in Germany.As a result, Avesco increased its dividend to 2p from 1.5p, which will be paid in October.Chairman Richard Murray said the outlook for the second half of the financial year is "just as encouraging", with full-year results likely to exceed the group's expectations.FinnCap upgraded its pre-tax profits forecasts for 2015 and 2016 on the back of the good results thanks to restructuring and growing corporate demand for its services.Shares jumped 29% to 182p on Thursday at 09:43.