PGGW to resume dividends

ALAN WOOD
Last updated 05:00 14/12/2012

Relevant offers

Industries

Foodstuffs one of world's largest retailers: Global Powers of Retailing report Number of foreign trusts declines ahead of new regulations Too old for IKEA: Study shows your age dictates where you go furniture shopping Agri-food co-ops worth $43 billion to NZ economy Samsung confirms Galaxy Note 7 batteries fault, announces response plan And, we are (almost) go for Kiwi Rocket launch in northern Hawke's Bay Dancing Sands toasts success from Kiwi products Mark Hotchin returns to New Zealand but critics say Hanover investors unlikely to forgive From urban planning to underwear: Confitex co-founder Mark Davey Top of the south working group advocates seek focus in fishery preservation

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

In October, PGG Wrightson said it would provide a dividend policy this financial year.

It has now provided the details, saying a dividend would 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 the board aimed to provide a consistent dividend stream.

However, the company also had to maintain financial flexibility, he said. Most revenue was generated in the second half of the year, mainly from the sale of seeds through PGGW's AgriTech division.

Given that PGG Wrightson had a December 31 end to its half-year and June 30 for its full year, potential dividends would be considered by the board in February and August of 2013.

It was too early to foreshadow what chance of payments there were at this point, Anderson said.

The PGG Wrightson board would determine appropriate cash dividends, both interim and final, taking into account considerations such as working capital requirements and capital expenditure requirements.

The interests of shareholders and the free cashflow available for distribution would also be taken into account. The shares yesterday closed at 37c. Fairfax NZ

Ad Feedback

- BusinessDay

Special offers

Featured Promotions

Sponsored Content