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City Pacific to pay 30 cent dividend

January 7, 2004 - 4:05PM

Diversified funds manager City Pacific Ltd on Wednesday said it was on track to pay a 30 cent dividend for financial year 2004 and that a half year dividend of 10 cents fully franked would be paid in February.

Chief executive Phil Sullivan said the company's recent options sale arrangement would add 23.5 million to its existing share base, bringing City Pacific's shares on issue to 88.5 million.

It will also increase its market capitalisation to about $310 million.

"Our business is growing extremely well, which should enable us to pay shareholders a fully franked dividend of 30 cents for the full year, up 100 per cent on last year," Mr Sullivan said.

"We should also achieve a 77 per cent increase in earnings per share this financial year to 37 cents, compared to 20.9 cents in 2003," Mr Sullivan said.

He added that the company was tracking ahead of budget this year and he was confident of achieving the forecasts.

Mr Sullivan said remaining exercisable options were expected to be exercised in July, giving the company around 100 million shares on issue, compared to 60 million shares on issue in June, 2003.

"So in a nutshell, despite increasing our share base by 66 per cent, we will double our dividend and increase our earnings per share by 77 per cent," he said.

On current prices, City Pacific offered a dividend yield of 8.57 per cent, he said.

City Pacific currently has $640 million funds under management.

Its shares were down five cents at $3.45 at 1124 AEDT.


This story was found at: http://www.theage.com.au/articles/2004/01/07/1073437334474.html