KPS adopts 30pc dividend payout policy
KUALA LUMPUR: Kumpulan Perangsang Selangor Bhd (KPS) has for the first time adopted a dividend policy of which the company plans to pay at least 30 per cent of its net profit annually.
Accordingly, KPS declared a 2.5 sen dividend for the year ended Dec 31 last year involving a RM13.4 million payout.
KPS said the policy served as a guideline to ensure that future dividends were declared in reflection of the group’s financial position, operating performance, investment needs and other factors deemed relevant to it.
“This is to ensure stable and sustainable returns for shareholders.
“The dividend declaration and payment will either be in an interim or final dividend, subject to the board’s and shareholders’ approval, respectively,” it said.
KPS managing director and group chief executive officer Ahmad Fariz Hassan said the inaugural dividend policy was a milestone, validating the company’s strength and sustainability.
Fariz said it also reflected the board’s 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.”
Fariz said returning capital to shareholders in the form of a 2.5 sen final dividend showed KPS’ financial commitment to its shareholders for their support, despite ongoing challenges in the macroeconomic landscape.
“Our excess capital remains at a level that affords us the financial flexibility to grow our business and ensure a healthy balance sheet,” he said.
Since its listing on Bursa Malaysia’s Main Market in 2004, KPS has delivered on its financial commitment and rewarded shareholders with dividends.