Scales lifts dividend for 2016, upbeat on this year's outlook

Tuesday 2nd May 2017

Scales Corp lifted its final dividend for 2016, when earnings were bolstered by a series of acquisitions, and is optimistic about the coming year even without earlier tailwinds.

The Christchurch-based company's board declared a final dividend of 10 cents per share, payable on July 7 with a June 28 record date. That takes the annual shareholder payout to 18 cents, eclipsing the 17 cents paid from 2015 which included a 4 cents per share special dividend.

Earlier this year Scales posted a 6 percent gain in annual profit to $38.2 million on a 24 percent gain in revenue to $373.9 million, It's previously forecast earnings before interest, tax, depreciation and amortisation will fall to between $55 million and $62 million in calendar 2017 from $67.3 million in 2016 on expected lower revenue from two of its apple businesses.

"Scales’ directors remain positive with regard to 2017 financial performance, with all three divisions (horticulture, storage & logistics and food ingredients) trading well during the first quarter of 2017 and including this year’s apple harvest," managing director Andy Borland said in a statement.

The company will provide an update to shareholders at its annual meeting on June 14 in Christchurch.

The shares slipped 0.6 percent to $3.33, having slipped 2.9 percent so far this year.

(BusinessDesk)

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