16th Jun 2015 09:36
LONDON (Alliance News) - Jarvis Securities PLC shares rose Tuesday after it declared a special dividend of 10 pence a share, after deciding that it would still have enough left to meet the cash needs of the business and meet the capital requirements of its regulated subsidiary.
The AIM-traded parent of Jarvis Investment Management Ltd said the special dividend will be paid July 16 to shareholders on the register on June 26. They will go ex-dividend on June 25.
Jarvis has a dividend policy of paying about two-thirds of profit after tax in dividends. It retains one-third to ensure it has sufficient liquid regulatory capital, to allow for investment within the business, and to provide management with funds for acquisitions should any opportunities present themselves.
"Having considered all requirements for retaining cash within the business, including the capital requirements of its regulated subsidiary, the board have concluded that after paying this additional dividend the firm retains sufficient reserves to meet all its objectives," it said.
"The board wish to emphasise that this dividend should be viewed by shareholders as an exceptional payment, and there is currently no intention to deviate from the stated dividend policy. However should the same circumstances arise in the future further special dividends will be given consideration," the company added.
In February, Jarvis reported a 4% increase in pretax profit in 2014 and raised its dividend for the year by 14%.
Jarvis Securities shares were up 5.5% at 422.00 pence Tuesday morning, one of the best-performing stocks in the AIM All-Share index.
By Steve McGrath; [email protected]; @stevemcgrath1
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