Pyne Gould Corp announces dividend, reviews strategy
Pyne Gould Corporation Ltd (PGC) is paying shareholders a special fully imputed dividend of 1.5 cents per share on December 3.The company signalled a review of dividends when it announced its full year result in August and announced the dividend today as
Pyne Gould Corporation Ltd (PGC) is paying shareholders a special fully imputed dividend of 1.5 cents per share on December 3.
The company signalled a review of dividends when it announced its full year result in August and announced the dividend today as it held its annual shareholder meeting.
"The company has a long history of paying dividends and PGC's performance has improved sufficiently to warrant the payment of a special dividend," Chairman Bruce Irvine said.
He told the meeting that in many ways the last year had been historic for the company.
"It has not all been good. We have had to deal with the outfall of the global financial crisis and we have had to further adjust the values on our balance sheet, in particular the property assets.
"We then had to sure up our position through a capital raising that was painful for many of our long standing and loyal shareholders."
The company has reposition in plant and equipment and motor vehicle lending and is now working on merging its finance company unit Marac with Southern Cross Building Society and CBS Canterbury with an intention that the merged entity becomes a bank.
The company was now a financial services group based around Marac, wealth management arm Perpetual, private equity arm Torchlight and had a shareholding in PGG Wrightson Ltd (PGW), Mr Irvine said.
"We continue to be a supportive cornerstone shareholder in PGW as that company also evolves its business. Again we will continue to consider our options with respect to that business moving forward but at present we see further upside value in that investment," Mr Irvine said.
The board saw great potential in the expansion of the Perpetual business but the fit of Torchlight with the company's strategic direction needed to be reviewed.
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