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Why the Rhipe share price just hit a 52-week high

The Rhipe Ltd (ASX: RHP) share price hit a 52-week high of $1.55 today despite the IT services company releasing no specific news to the market. Rhipe is scheduled to report its half-year results on February 18.

In fiscal 2018 the provider of cloud and general IT support services posted an operating profit up 54% to $7.8 million on revenue of $196.6 million, which was up 25%. Over the year it also bought back 3.4 million shares and paid a 1.5 cents per share dividend.

For the quarter ending September 30 2018 Rhipe has already reported that revenue grew 30% to $5.5 million to produce an operating profit of $2.8 million or reported EBITDA of $2.1 million.

The board is guiding for a fiscal 2019 operating profit between $10.5 million to $11.5 million.

As investors can see profit, revenue, and dividend are all growing strongly, and this will almost always translate into a rising share price if sustained over a few years.

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Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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