BurgerFuel Worldwide, the fast food chain franchisor, boosted annual profit 55 per cent as sales in the Middle East continued to surge. The company won't pay a dividend as it builds up cash for investments.
Net profit rose to $1.1 million, or 2.05 cents per share, in the 12 months ended March 31, from $708,000, or 1.32 cents, a year earlier, the Auckland-based company said in a statement. Sales climbed 25 per cent to $12 million, led by a 35 per cent gain in Middle East revenue.
The company raised $2 million in December in a placement to Milford Asset Management in a year when its operating cash flows slumped 45 per cent to $337,000. As at March 31, the company held cash of $4.2 million.
"In accordance with the previously outlined policy, since listing on the NZAX, there will be no dividends paid," the company said. "This is to ensure that the group can build up and maintain adequate cash reserves for further investment into the business."
In recent years BurgerFuel has increased its exposure to the Middle East by signing master licensing agreements, which earns the company up-front territory fees and on-going royalties based on store turnover.
