Sharechat Logo

Tower Limited (NZX: TWR) Tower’s Consistent Growth Supports Return to Dividends

Tuesday 23rd February 2021

Text too small?

Tower Limited today holds its Annual Shareholder Meeting and has reconfirmed its full year guidance, as well as announcing its intention to confirm and pay an interim dividend with its half year results in May 2021.

Blair Turnbull, Tower CEO, says an ongoing focus to create a more agile and digital business model has helped the company weather a number of large events in the first four months of the financial year, while still maintaining a focus on growth and innovation.

“In the four months to 31 January 2021, we achieved $129m Gross Written Premium (GWP), representing growth of 6% on the same period last year thanks to our ongoing focus on delivering for our customers. Along with the addition of the Youi NZ portfolio, this growth has seen our market share increase to 9.2% in December 2020, up from 8.4% at the same time last year,” says Turnbull.

No change to guidance and intention to pay interim dividend

There is no change to Tower’s FY21 underlying Net Profit After Tax (NPAT) guidance of at least a 5% improvement on FY20 underlying NPAT ($28.4m), although falling investment returns and large events have placed some pressure on FY21. This is based on the current level of actual large events.

The large events expense for Lake Ōhau fire and Napier floods has resulted in a $10m large events expense year to date which will impact Tower’s FY21 underlying NPAT. Tower’s aggregate reinsurance cover is triggered at $14m.

Tower has announced an updated dividend policy of 60% - 80% of cash earnings where prudent to do so, with cash earnings defined as Reported Full Year Net Profit After Tax adjusted for acquisition amortisation and unusual items.

Along with the updated policy, Tower has announced its intention to pay a dividend with its half year results in May in what would be the company’s first dividend payment since March 2016. An indicative interim dividend of $0.025 per share is expected to be confirmed at the company’s 2021 Half Year results.

Please see the link below for details:

Tower’s consistent growth supports return to dividends

Source: Tower Limited



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Good Spirits Hospitality Limited (NZX: GSH) Half Year Results to 31 Dec 2020
NZ Automotive Investments Limited (NZX: NZA) FY21 Earnings Guidance
T&G Global Limited (NZX: TGG) 2020 Full Year Results
Vista Group International Limited (NZX: VGL) Vista Group in the Box Seat for the Future of Movies
Private Land and Property Fund (NZX: PLP) Change in Harvest Estimates
Allied Farmers Limited (NZX: ALF) FY21 Half Year Report
New Zealand Rural Land Company Limited (NZX: NZL) Interim Report to 31 December 2020
Seeka Limited (NZX: SEK) Announces its 31 December 2020 Result
Evolve Education Group Limited (NZX: EVO) Announces Results for Year Ended 31 December 2020
Port of Tauranga Limited (NZX: POT) Reports Improved Profits

IRG See IRG research reports