pause for applause

There is a proposed return of surplus funds to be paid to shareholders of $0.4357 cents per share, subject to shareholder approval.

The directors have committed to pay a one-off special dividend of $0.0913 cents per share (in addition to the final dividend). Further, they are intending to maintain ongoing dividend payments at a payout ratio closer to 80% of annual earnings, at least while the company has low debt.

They also propose a consolidation of share capital (by converting 3 shares into 1). Theoretically, this should see the share-price increase proportionally, after it adjusts for the return of capital.

As an efficient and strong building products operation, the company should be well-positioned for growth when appropriate opportunities arise. The restructuring, including reducing debt, should help ensure the company is capable of delivering stable high dividends.

All this is great for investors, not so for speculators.

Hopefully, these changes will engender a new wave of confidence in the company and its management and the share price will kick-on from here.

I can only applaud the timely manner in which directors have acted since the final approval for the Sucrogen sale.

Congratulations to directors for looking after investors.



Disclaimer
Please note that I am not providing valuations, advice, information, recommendations or predictions. The above statements are merely my own calculations, comments and thoughts as an ordinary shareholder without any special skills or knowledge. I absolutely disclaim any responsibility or liability whatsoever for any consequences arising from the use of my calculations, comments and thoughts expressed. If you require advice or information, you should seek the services of an appropriately qualified independent expert professional person as well as do your own proper and thorough research.