Coventry returns cash quicker
Coventry Group has bowed to shareholder demands to return surplus cash quicker, bringing forward and increasing a special dividend flagged last year.
Announcing the decision yesterday with the release of Coventry's interim results, new chairman Neil Cathie conceded the group had retained "a large cash balance for too long" under former chief executive Roger Flynn while it chased acquisitions.
Coventry flagged the review of its dividend policy earlier this month, at the same time as putting acquisitions on hold as part of a strategic review.
A fully franked special dividend of 11� has been increased to 17� and will now be paid next month, rather than July as foreshadowed a year ago. Its interim payment of 11�, also due next month, has been cut to 4.25�.
Coventry admitted the decision was influenced by feedback from shareholders but also took its strategic review and its trading outlook into account.
The interim results were in line with guidance provided on February 9, revealing a $3.3 million loss on a 6 per cent fall in revenue to $101.75 million.
The group's fasteners and fluids business has been hurt by lower demand from the mining sector. It expects a similar loss in the second half before up to $18 million of writedowns.
