KUALA LUMPUR (March 30): Kumpulan Perangsang Selangor Bhd (KPS) today said it has approved a dividend policy under which the company intends to pay at least 30% of its normalised profit after taxation and minority interest annually.
The policy, which takes immediate effect, will serve as a guideline to ensure that future dividends are declared in reflection of the group’s financial position, operating performance, future investment needs, and other factors deemed relevant to the group, KPS said in a statement.
“This is to ensure stable and sustainable returns to shareholders. The dividend declaration and payment will either be in an interim or final dividend, subject to the board and shareholders’ approval, respectively,” it said.
Its board has also proposed the distribution of RM13.4 million as the final cash dividend for the financial year ended Dec 31, 2020. The proposal will be up to shareholders’ approval at its upcoming annual general meeting on May 25.
“If approved, our shareholders will be receiving a 2.5 sen dividend per ordinary share. The final dividend will be payable on June 24 to shareholders of record as of May 31,” it said.
KPS’ managing director and group chief executive officer Ahmad Fariz Hassan said the group’s announcement of its inaugural dividend policy is a significant milestone, which validates its business’ overall strengths and sustainability.
“It also reflects the board’s confidence in the group and its commitment to rewarding shareholders for their ownership and support. The basic premise is that we expect KPS to continue to create value, improve earnings visibility and generate sustainable cash flows to support the policy, moving in parallel to our long-term business strategy of enhancing the group fundamentals and accelerating the delivery of all our subsidiary companies,” he said.
He also said returning capital to shareholders in the form of 2.5 sen final dividend per ordinary share for financial year 2020 shows the group’s financial commitment to its shareholders for their support, despite ongoing challenges in the macroeconomic landscape.
“Our excess capital remains at a level that affords us the financial flexibility to grow our business and ensure a healthy balance sheet,” he added.
Meanwhile, the group noted it has, since its listing on Bursa Malaysia’s Main Market in 2004, consistently delivered financial commitment and rewarded its shareholders with dividends.
It added that it will review the dividend policy annually and may amend it if necessary based on the company’s financial position, profitability, cash flow and other relevant factors, to ensure consistency with the group’s overall corporate objectives.
KPS closed three sen or 3.06% lower at 95 sen today, valuing the group at RM537.38 million.
