To answer your question, here is my view:
It seems to me that PPX is on the verge of being turned around, for the reasons I indicated in my previous post... The main hurdles still are the Eurozone situation, as the company has quite a bit of business over there, and the management's ability to speed up restructuring to a best practice operation and low cost base. (I haven't still formed a final opinion about the new top management team as they are relatively new, but based on their shareholder briefings they seem to know what they are doing and are serious about improving the business performance).
The PPX shareholders have been waiting for dividends for a long time, and I feel the management will be keen to start paying dividends as soon as things begin to improve. IMO the eurozone situation is likely to be settled one way or the other within the next few months, and the restructuring benefits should begin to show through in the second half of FY12, so there is a good likelihood of PPX management wanting to start payment of dividends after FY12 annual results.
As the company already has positive cashflow, which will only improve if things pan out as per my scenario above, I believe the company will continue paying PXUPA distributions in order to meet the pre-condition to start PPX dividends in 12 months' time. There is no bank covenant to prevent this from happening either.
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