CBL announces first dividend payment since October listing

Thursday 31st March 2016

CBL Corp, the NZX-listed company that sells credit surety and financial risk insurance, has announced a 4.5 cent dividend.

The board did not declare a dividend in February when it reported its annual results for the year ended Dec. 31, 2015, but said its policy to distribute 30 percent of adjusted net profit subject to regulatory capital and liquidity requirements remained unchanged, and details of the dividend would be announced towards the end of March.

In a statement, chair John Wells announced a 4.5 cent per share dividend with a record date of April 15, payable on April 22. The dividend is split into a final dividend of 2.7 cents, and a special dividend of 1.8 cents, which Wells said was to reflect its first half of 2015, prior to its Oct.13 initial public offering.

"Please note shareholders who participated in the IPO on the 13 October 2015, or acquired shares subsequently and are holders on the record date, will receive the benefit of this special dividend, as no pre-IPO interim dividend was declared and paid," Wells said.

CBL raised $90 million of new capital in the IPO prior to listing on the NZX and ASX, with that capital used to fund the purchase of Australian specialty insurer Assetinsure. It also took a 92 percent stake in accounting expense insurance provider Professional Fee Protection in the United Kingdom, and 35 percent of Mexican specialist bonding and surety insurance company Fiducia.

The company, which began as Contractors Bonding Ltd in 1973, derives almost 98 percent of its revenue from international operations. Its annual earnings report in February showed it outperformed its IPO profit forecast of $26.1 million, and lifted annual net profit 83 percent to $35.5 million in 2015.

The shares rose 0.8 percent to $2.47 and have gained 60 percent from the offer price of $1.55.

(BusinessDesk)

BusinessDesk.co.nz

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