Ann: Appendix 4E - Preliminary Final Report, page-8

This business is trading on a PE of 1.4. The reason it's trading on a PE of 1.4 is that the market doesn't believe the accounts. They made 7 cents per share last year according to the books. If they pay a dividend of (say) 2 cents, the stock would either: A) Have a yield of 22% or B) Increase to about 25 cents and have a yield of 8% but massive capital gain. Why on earth would any holder not want a cash payment that confirms the business does have money, thus massively increasing the share price?

Reaper.