30th Jul 2015 08:13
LONDON (Alliance News) - Auto Trader Group PLC Thursday said it has completed a capital reduction, which it says is an "important step" towards allowing it to begin paying dividends and returning cash to shareholders in the future.
The online automotive trading company said the entire amount standing to the credit of its share premium account of GBP144.43 million was cancelled, and the nominal value of each ordinary share in the company was reduced to GBP0.01 from GBP1.50.
Following the capital reduction, the company's entire issued share capital is 1.00 billion shares of 1p each nominal value.
"The capital reduction has created a significant amount of distributable reserves for the company and represents an important step towards facilitating the board's strategy of paying future dividends and returning cash to shareholders," said Finance Director Sean Glithero in a statement.
Shares in Auto Trader are trading up 0.1% at 336.70 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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