PGGW to resume dividends

Last updated 05:00 14/12/2012

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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

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