Tuesday, 30 March 2021
KPS Announces Inaugural Dividend Policy, Proposes 2.5 sen Final Dividend for FY2020
- Dividend Policy Sets A Guideline to Ensure Sustainable Returns to Shareholders
- Single-Tier Final Dividend of 2.5 sen per Ordinary Share on Improved Fundamentals
Shah Alam, Malaysia, 30 March 2021 – Kumpulan Perangsang Selangor Berhad (“KPS” or “the Company” or “the Group”, Bursa: 5843; Bloomberg: KUPS MK; Reuters: KPSB.KL) announced today that its Board of Directors (“Board”) has adopted a dividend policy (“Policy”) under which the Company intends to pay at least 30% of the Group’s normalised Profit after Taxation and Minority Interest (“PATAMI”) 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. 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.
The approved Policy can be viewed at https://www.kps.com.my/index.php/investor-relations/corporate-governance.
The Board also proposed the distribution of RM13.4 million as the final cash dividend for the financial year ended 31 December 2020. The proposal will be subject to the shareholders’ approval at the 44th AGM, which will be held on 25 May 2021. If approved, our shareholders will be receiving a 2.5 sen dividend per ordinary share. The final dividend will be payable on 24 June 2021 to shareholders of record as of 31 May 2021.
KPS’ Managing Director/Group Chief Executive Officer, Ahmad Fariz Hassan, said:
“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.
Returning capital to shareholders in the form of 2.5 sen final dividend per ordinary share for FY2020 shows our financial commitment to our shareholders for their support, despite ongoing challenges in the macro-economic landscape. Our excess capital remains at a level that affords us the financial flexibility to grow our business and ensure a healthy balance sheet.”
Historically, since the listing of KPS on Bursa Malaysia Main Market in 2004, the Group has consistently delivered financial commitment and rewarded the shareholders with dividends. In its filing with Bursa Malaysia Securities Berhad, KPS says that 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.
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About Kumpulan Perangsang Selangor Berhad (www.kps.com.my)
Incorporated on 11 August 1975, Kumpulan Perangsang Selangor Berhad (“KPS” or “the Company” or “the Group”) is a public limited liability company listed on the Main Market of Bursa Malaysia Securities Berhad under the Industrial Products & Services Sector. KPS has core investments in the Manufacturing sector, as well as businesses in the Trading, Licensing, and Infrastructure sectors. While strengthening our business to optimise returns, KPS is committed to providing significant contributions towards sustainable development in the areas of economic, environmental, and social for the benefits of all stakeholders.
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