LONDON – Walker Crips Group plc, the financial services company, has reported mixed financial results for the six months ended 30 September 2024. The company saw a slight increase in total revenue, which rose 2.3% to £15.8m compared to £15.5 million in the same period last year. Gross profit also increased, rising 4.1% to £13.1m from £12.6m in 2023.
Despite these increases, the company experienced a drop in profitability, posting an operating loss of £1.68m, a sharp contrast to the £173,000 operating profit reported the previous year. Similarly, pre-tax loss was £1.45m, compared to pre-tax profit of £268,000 in 2023.
Adjusted EBITDA, a measure of earnings that excludes certain items to give a clearer view of operating performance, was negative at £832,000, down from a positive £1.06m last year. This decline reflects the financial challenges the group faced during the period.
The group also reported an increase in core cash used in operations, which was £1.08m, a turnaround from the £1.61m cash generated from operations in 2023. Walker Crips’ net cash position narrowed to £12.8m pounds from 14.1 million pounds the previous year.
Assets under management (AUM) were unchanged at £2.7bn, while In total (EPA:) Assets under management and administration (AUMA) decreased by 4.1% to £4.7bn from £4.9bn as at 31 March 2024.
In light of these results, the Board decided not to issue an interim dividend, citing the group’s trading results during the period. That’s a change from the previous year when the company paid out 0.25 pence per share.
The above information is based on a press release from Walker Crips Group plc. A company’s financial performance metrics, such as revenue, gross profit and cash flow, reflect a company navigating challenging economic conditions while maintaining its assets under management. The decision to withhold the dividend payment underscores a cautious approach to capital management amid reported losses.
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