Nasstar annual profits and revenue jumps after company meets targets

7th Apr 2015 09:56

Cloud computing group Nasstar said its annual profits and revenue grew in 2014, as the company met its target of becoming a "commercially focused, profitable and sustainable business".The London-listed company said pre-tax profit for the year to 31 December jumped from £1m to £7.7m, while revenue surged from £2.5m to £11.2m.Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) grew 11% ahead of expectations to £2.3m, while gross margins grew 31% to 69%.In a statement released on Tuesday, the group said the acqusitions of e-know.net and Kamanchi boosted its performances as they allowed it to benefit from inter-group revenue streams.Nasstar added that cost consolidation programme within its UK division had ensured the business was no longer in a loss-making position and had contributed to its EBITDA.E-know.net reported organic growth of 18%, while Kamanchi and Nastar's UK division saw organic growth of 10% and 5% respectively."We have delivered on our financial and strategic targets alike, becoming a commercially focused, profitable and sustainable business fit to take advantage of what remains a clear market opportunity," said group chief executive Nigel Redwood.Redwood said that the combination of the three subsidiaries had created a strong platform for continued growth, adding Nasstar remained well positioned for the current financial year.The company added it will declare its maiden final dividend in April 2016 and will thereafter adopt a progressive dividend policy.Nasstar shares were up 1.45% to 8.75p at 10:25 on Tuesday.