This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
Stock Spirits releases special dividend
Troubled drinks producer Stock Spirits has announced a special dividend of 10p per share in an effort to calm investors’ nerves.
Stock Spirits has released a 10p dividend to investors
In a statement released this morning, the group, which has seen an activist investor rebellion in recent months, said the pre-announced dividend meant it would not seek any merger or acquisition activity in 2016.
Its share price has so far increased by around 0.5% on the news.
“At the announcement of the full year 2015 results in March 2016, and as reaffirmed during the company’s AGM process in May, the board stated that its primary focus is the turnaround of the Polish business and that should a material M&A transaction not be completed during 2016 then the board would seek to return capital to shareholders,” the statement reads.
“The announcement today of the payment of a special dividend recognises that the Group does not intend to undertake any material M&A during the remainder of this year.”
Stock Spirit’s normal dividend policy remains, with the interim dividend set to be announced along with the firm’s half-year results on 10 August, the statement continues.
Taking the special dividend announced today, the interim dividend and the final dividend for 2016, the company says it intends to return “approximately 100%” of its 2016 net free cash flow to shareholders. As such, it expects year-end net debt to remain at 2015 levels.
Stock Spirits has so far experienced a tempestuous 2016, and saw CEO Chris Heath step down following investor pressure in April.