Contact declares final dividend

Contact had earlier announced fully imputed interim dividends of 5.5 cents per share in May last year and 11 cents in November. The 19 cents total payout compares to the 17.36 cents per share dividend from the previous year.

Chairman, Phil Pryke, says the company's commitment to progressive dividends had been maintained, although circumstances might require a modified stance in the future.

"Contact has always emphasised that it seeks progressive dividend growth over time, but that the actual dividend in any particular year will also need to take account of considerations such as operating conditions, and future capital expenditure needs.

"Looking ahead, it is clear that investment in new business and assets will be required to maintain growth over the longer term."

Mr Pryke says in periods where significant investment occurs, dividend growth may have to be deferred in the short term to ensure longer term earnings growth can be maintained.

A takeover bid by Contact's majority shareholder, Edison Mission Energy, for full control of the company recently failed after failing to receive the required level of acceptances. The offer price was $4.25 per share less the 11c interim dividend.

At the time Mr Pryke said the board respected shareholders' decision not to sell and viewed it as a vote of confidence in the future of the company, which last year benefited from a cold, dry winter and turned in a strong net profit surplus of $130.7 million.

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