18th Jun 2015 07:40
LONDON (Alliance News) - Tristel saw its shares rise early Thursday after is said it will pay a special dividend of 3 pence a share on top of the final dividend it still expects to pay.
The manufacturer of infection prevention, contamination control and hygiene products said it will pay the special dividend on August 6 to shareholders on the register June 26. The ex-dividend date will be June 25. It still expects to declare a final dividend when it announces its full-year results on October 12.
"As I stated in February in our half yearly report, my philosophy is that our business should return to shareholders cash which is not required for future earnings enhancing investments. We continue to generate significant levels of cash after capital expenditure, interest, tax and ordinary dividends paid in accordance with our stated dividend policy. The prevailing policy is two times cover with one quarter of our expectation for the full year pay-out paid as an interim dividend," Chairman Francisco Soler said.
"Returning cash to shareholders at this juncture will not be at the expense of investment in the business. We have a more exciting pipeline of new product developments than I have seen at any time in our corporate history. At the same time we are moving forward with regulatory approvals in new, game-changing markets. Also, during the past six months we have devoted a great deal of management time to assessing the challenges of the Biocidal Products Regulation and are now confident that the future costs associated with it will be met comfortably from ongoing cash flow," he added.
Tristel shares were up 7.7% at 96.95 pence early Thursday.
By Steve McGrath; [email protected]; @stevemcgrath1
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