Security risk management group Red24 Plc (LON:REDT) this morning unveiled a 29% increase in revenues to £4.3m for the full year to March, with pre-tax profits up 17% to £0.6m. The company credited the performance to sustained growth at its main red24 division, where it was boosted by a growing number of one-off responses and a significant expansion of its services to insurance providers. Shares in the company rose by 15.6% to 9.25p on the news.

Red24 supplies preventative and reactive advice to help individuals and organisations to avoid and manage security risks to themselves, their families and their organisations. The products are mainly distributed through leading international financial service companies. During the year the company renewed its two key distribution deals with TravelGuard and HSBC for a further three years. It also signed three contracts with leading US underwriters to provide additional special risk services. Red24’s performance during the year triggered a maiden dividend of 0.15p per share in January and the company said it intended to maintain a progressive policy on this front, with a dividend decision expected around the sale time in the current financial year.

Revenues for the red24 business segment grew by 49%, with 10% of that coming from one-off response work. The strength of the rand against both sterling and the dollar increased the costs of its Crisis Risk Management Centre (CRM) in Cape Town by 17.6%, however the business was able to absorb these costs through extra revenues. Elsewhere, the group’s Training segment saw a 23% fall in revenues in the year, but the impact on profit was less marked as more work was conducted overseas where hotel costs, which are the largest single cost in running a course, are significantly lower.

Simon Richards, Red24’s chairman, said: “This has been an excellent year for the group and one that saw us build on the sound platform created in the previous year. The strength of our performance was across the board, with revenues, profits and cash generation all showing marked improvements on the prior year and providing us with the confidence to pay our first dividend.”

Mr Richards said the renewal of deals with TravelGuard and HSBC “re-affirmed the benefit those customers see in our products” and provided opportunities to grow the business. He noted that the company had since added further…

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