IS Solutions: IS Solutions shares ahead as focus on data analytics pays off

Shares in data specialist IS Solutions (LON:ISL) rose 5% at the open as it unveiled a strong finish to its 2016 year and a 257% increase in the final dividend payout. The firm said its core analytics business had continued to gain traction, achieving 126% growth in the 12 months to end March compared to the previous year. The combination of its brands of IS Solutions and Celebrus had meant cross-selling opportunities and, with stronger higher margin license sales and recurring revenue. Revenue added 45% in the period to £18.6mln, while underlying pre-tax profit added 187% to £3.5mln compared to £1.22mln in the 15 months to end March, 2015. Gross profit was 97% higher at £9.21mln. The divi for the year was lifted to 2p a share, from 0.56p. Chief executive Peter Kear said: "This is a very exciting time for the business - over the last five years the IS Solutions historic model has developed its core strategy to progressively build a data analytics business. "Our new market focus brings together existing fields of expertise and new skills to create a comprehensive and cohesive range of data solutions. In order to reflect this step-change the board has already announced its intention, subject to shareholder approval in July 2016, to rename the company and rebrand it D4t4 Solutions Plc." Chairman Peter Simmonds said: "Over the last twelve months, we have seen strong demand for our offering across both brands which has manifested in the number of major projects being secured with new and existing customers operating within the retail and financial services sectors. "In addition, these new projects, will generate recurring revenue, which is very reassuring in terms of cashflow and working capital." Shares gained 4.96% to 118.60p.