KUALA LUMPUR: Kumpulan Perangsang Selangor Bhd's board of directors has adopted a dividend policy to pay at least 30% of the group’s normalised profit after taxation and minority interest annually.
The policy, which takes effect immediately, serves 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, it 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’s and shareholders’ approval, respectively," it added.
The Board also proposed the distribution of RM13.4mil as the final cash dividend for the financial year ended Dec 31, 2020.
The proposal will be subject to the shareholders’ approval at the 44th AGM, which will be held on May 25, 2021. If approved, shareholders will be receiving a 2.5 sen dividend per share. The final dividend will be payable on June 24, 2021 to shareholders of record as of May 31, 2021.
"The announcement of our inaugural dividend policy is a significant milestone for KPS, validating the business’ overall strength and sustainability. It also reflects the Board’s confidence in the Group and its commitment to reward 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," said KPS managing director and group CEO Ahmad Fariz Hassan (pic).
KPS said it will review the dividend policy annually and may amend the Policy in consideration of the Company’s then-current financial position, profitability, cash flow, and other factors considered relevant, ensuring consistency with the Group’s overall corporate objectives.