Cabcharge has reported a 6.2 per cent drop in annual net profit and says it's cautiously optimistic about the future.
Net profit for the year to June 30 was $57.6 million, down from $61.4 million in the previous corresponding period.
The result was negatively impacted by legal costs relating to action taken against it by the Australian Competition and Consumer Commission (ACCC), and the aftermath of the global financial crisis, Cabcharge said.
Profit from UK operations were significantly down due to poor economic conditions, European sovereign debt issues and disruption to travel caused by the volcanic eruption in Iceland, it said.
"While there are some positive signs of improvement in the Australian economy, we remain optimistically cautious," executive chairman Reg Kermode said in a statement.
There are signs of economic recovery in the UK, and the lead up to the 2012 Olympic Games in London could also see an improvement in the business' bottom line, he said.
In Australia, a significant number of new taxis were expected to use Cabcharge's network services due to a rise in taxi licenses in NSW and Victoria, Mr Kermode said.
Cabcharge would continue to invest in technology that offers safety assurance to industry participants and consumers, it said.
Cabcharge declared a fully franked final dividend of 17 cents per share, taking the full year dividend to 34 cents, in line with the prior year.
Its shares were up six cents to $4.31 at 1056 AEST.
AAP