BREAKING NEWS
Warriors win in OKC to set up a sudden death game seven against Steven Adams' Thunder ... Read more
Close

PGG Wrightson restarts dividends

ALAN WOOD
Last updated 15:00 13/12/2012

Relevant offers

Industries

Kathmandu admits chucking stock in dumpster but says it was faulty Fashion label Federation's resurrection a cautionary tale for importers Air New Zealand trialing robots to check for aircraft damage Govt thinks about compulsory warranty to protect against building flaws Stewart Island crib and Remarkables ski base in southern architectural awards Fairfax, NZME media merger approval sought Airways to charge less for air traffic control services Tuakau man's text-message dismissal ruled unjustified Wellington brewery Panhead Custom Ales sold to Lion Group Queenstown property peak expected to be "stronger for longer"

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.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content