10/09/2014 - 09:29

Brierty to raise $8.2m, declares 8c dividend

10/09/2014 - 09:29

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Construction contractor Brierty has declared a fully franked special dividend of 8 cents per share, while resolving to raise up to $8.25 million through a 16.5 million share placement.

Brierty to raise $8.2m, declares 8c dividend

Construction contractor Brierty has declared a fully franked special dividend of 8 cents per share, while resolving to raise up to $8.25 million through a 16.5 million share placement.

Brierty said the shares would be issued at 50 cents per share to institutional and sophisticated investor clients of stockbroking firms Bell Potter Securities and Hartleys, while the special dividend would be payable to new shareholders as well as existing shareholders.

“We believe the placement enhances the quality and diversity of our share register and in doing so creates the potential for improved liquidity in our stock,” Brierty managing director Peter McBain said.

In August, Brierty flagged a 3 per cent fall in full-year profit to $9.9 million as a result of the competitive conditions in the market, but declared a final fully franked dividend of 1.75 cents per share.

Brierty today said that new shareholders would not be entitled to the final dividend.

“We have been focused on trying to provide greater opportunities for existing and potential shareholders as we continue to grow the business,” Mr McBain said.

“The placement meets that objective but also provides the funds that allow Brierty to release the value of surplus franking credits by delivering a fully franked special dividend, benefiting all shareholders.

“It also ensures we can pay the dividend but maintain a strong cash balance, providing Brierty with the flexibility to deliver on our record order book,” he said.

Brierty’s share price rose by 7.6 per cent to 63.5 cents per share at 9:30am. 

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