KRUK Management Board to pay dividend for third consecutive time
The Management Board of KRUK S.A. will recommend to the General Meeting that a dividend of PLN 2 per share (PLN 37.5m in total) be distributed to the shareholders from consolidated net profit earned in 2016. The balance of the net profit will be allocated to statutory reserve funds. If the shareholders approve the recommendation, this will be the third consecutive year of dividend payment by the Company.
“In 2016, our expenditure on debt portfolios reached an all-time high of PLN 1.3bn. In 2017, we also expect to see plenty of investment opportunities in all our seven markets, which is why we decided to slightly postpone the dividend recommendation. Now we know that a low dividend payout will stay in line with our priority to maximise further growth of the KRUK Group’s value,” said Piotr Krupa, President of KRUK S.A.
In the Management Board’s opinion, the decision to pay a dividend of PLN 2 per share takes into account the Group’s future investment financing requirements, as well as its current debt level and overall financial standing. The dividend payout will also foster the cost-conscious culture and limit potential supply of shares by KRUK employees.
“Our decisions to pay out dividends have already shown some regularity, even though KRUK, as a growth company, is not yet ready to implement any strict dividend policy. We are not ruling out profit distributions in the following years, but they will depend on the then prevailing market conditions, as well as our performance and ability to secure the financing we need to further grow our business. This flexibility is a great aid in delivering value growth to our shareholders,” Piotr Krupa added.
In 2016, the KRUK Group posted PLN 249m in net profit, up 22% on 2015 (PLN 204m). Its dividend in 2016 amounted to PLN 2 per share (PLN 35.5m), whereas a year earlier it was PLN 1.5 per share (PLN 25.9m).