Insurance broker Brightside (BRT:AIM) looks set to pay its maiden full-year dividend after announcing significant revenue and profit growth in 2012.
A trading update (25 Jan) says revenue and profit will be in line with expectations. Consensus forecasts are looking for a 36% jump in pre-tax profits to £18.6 million.
Shares were up 1.3% on Friday morning to 23.5p. Stockbroker FinnCap has set a 28p target price. The company has already declared its maiden interim dividend in October 2012 of 0.22p per share, which makes a full-year dividend seem inevitable, according to analysts.
Key drivers of growth have been the group’s online product eCar and its affinity partnerships with Asda and Debenhams, which started in July.
Policy sales for 2012 increased 5% year-on-year to more than 465,000, while annual policy sales increased 12% to break the 400,000 mark.
Its premium finance loans increased 26% during the year to some 274,000, increasing the value of its loan book by 23% to £167 million.
Brightside is also planning a 10% buyback to return cash to shareholders and improve liquidity. Preliminary results will be announced in March.