PGG Wrightson restarts dividends

Last updated 15:00 13/12/2012

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Listed rural services firm PGG Wrightson says it intends to restart dividends, nearly four years after the company last rewarded shareholders with a payment.

In October PGG Wrightson that it would provide a dividend policy this financial year, and it has now given details that a dividend could be paid this year taking into account "relevant considerations".

The last PGG Wrightson dividend was paid on April 1, 2009.

Chairman Sir John Anderson said that the board intended to recommence dividends and have resolved to adopt a dividend policy geared towards providing a consistent dividend stream while maintaining financial flexibility through the business cycle.

The PGG Wrightson board would determine to pay cash dividends, both interim and final, as appropriate taking into account relevant considerations at the time, he said in a statement issued through the NZX.

These considerations would include working capital requirements and capital expenditure requirements.

They would also include the cyclical nature of agricultural business recognising that the majority of revenue is generated in the second half of the financial year.

The interests of shareholders and the free cash-flow available for distribution would also be taken into account.

In October at its annual meeting PGG Wrightson told shareholders it was confident of exceeding last year's first-half earnings of $20 million in the same period this financial year but wouldn't provide an exact forecast.

China-based Agria holds a 50.22 per cent shareholding in PGG Wrightson.

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