Press Release
Farmer Business Developments plc resumes dividends with announcement of
10 cent per share payout
The Chairman of Farmer Business Developments plc, Padraig Walshe, has announced
that the company is to
resume paying dividends for the first time since the onset of the Covid-19 pandemic
with the payment of a 10 cent
per share interim dividend to its shareholders at the end of November.
The decision will mean a payment of €1,036 each before dividend withholding
tax (DWT) to over half of the
companys 4,400 mainly farmer shareholders who have the standard holding
of 10,369 shares.
The company is also resuming the payment of dividends on its preference shares,
which will benefit the holders of
the 14% and 11% non-cumulative preference shares. The record date for dividend
payment is 5th November 2021.
Farmer Business Developments plc had suspended dividend payments last year on
a cautionary and uncertainty
basis due to the unprecedented challenges caused by Covid-19. Padraig Walshe
said while uncertainty remains,
the success of the vaccination programme and the reopening of hospitality have
transformed the business
environment in recent months.
In reviewing our companys financial situation, the Board had regard
to our strong balance sheet and the
turnaround in our FBD Hotels & Resorts business since the reopening in June
after five months of closure this
year and severe business disruption last year due to the pandemic.
While our Irish hotels have stabilised and are recovering well, the performance
of our Spanish resorts, Sunset
Beach and La Cala, is lagging behind the Irish hotels, but we are seeing a steady
recovery of business in Spain as
international travel resumes and visitor numbers rise.
Property sales at La Cala have enjoyed an exceptional year to date with
55 built units sold in partnership with
Taylor Wimpey, as well as 10 villa plots and a townhouse site sold by ourselves.
The Board also noted the positive performance of the companys other
investments, including in FBD Holdings plc
which reported a €22m profit before tax in its half year results, and the
continuing strong interest in the remaining
development land adjacent to the new Berlin Airport held by our 61% subsidiary.
Padraig Walshe said the Board is very conscious of this companys
loyal shareholders and their attachment to
annual dividends. While there are no guarantees in this pandemic, we have taken
the present opportunity to
reward our shareholders and resume paying dividends on the basis that we are
returning to a more sustainable
business environment and that our financial position allows us to do so.
ENDS
Contact: Company Secretary, Bryan Barry, on 086 2546175 or bryanbarry@fbdevelopments.ie.
Notes
Farmer Business Developments plc holds a 24.3% stake in the stock market quoted
company, FBD Holdings plc,
whose main business is FBD Insurance.
Farmer Business Developments plc welcomes new farmer shareholders who are both
members of IFA and
farming customers of FBD Insurance for a minimum of three years at the time
of application. Further information is
available on the company website www.farmerbusinessdevelopments.ie.