Sam-Woode has recommended a dividend of GHS0.012 per share in respect of the 2015 financial year, up from GHS0.004 per share paid in 2014, reflecting a 200.0%y/y growth. The jump in dividend payment was buoyed by the announcement of a net profit of GHS1.06 million in 2015 from a restated loss of GHS0.21 million in 2014 (an initial profit of GHS0.13 million was reported in 2014).
The improvement in profitability was driven by 54.2%y/y growth in revenue to GHS4.57 million and better operating efficiency in 2015.
The 2015 dividend of GHS0.012 per share reflects a very good dividend yield of 30.0% based on the prevailing market price of GHS0.04 per share. This is the highest dividend yield on the Ghana Stock Exchange. Sam-Woode is a low market capitalization stock with an aggregate market capitalization of GHS0.87 million at the close of trading today.
The company is expected to pay a total dividend of GHS621,936.42 based on the issued shares of 21.83 million, which reflects a dividend payout ratio of 24.8%. It likely that Sam-Woode is retaining majority of the 2015 earnings for reinvestment into capex projects this year to enhance the company's capacity. Last year, the company built a new warehouse, books printing factory and staff offices at Nyayano, near Kasoa.
Please see below a calendar of events leading up to the payment of the dividend in August in 2016.
Qualifying date
All shareholders registered in the books of SWL at the close of business on Tuesday, 26th July, 2016 will qualify for the final dividend.
Closure of Register
The Register of shareholders will be closed from Wednesday, 27th July, 2016 to Thursday, 28th July, 2016 (both dates inclusive).
Ex-Dividend Date
In view of the foregoing, the ex-dividend date has been set as Friday, 22nd July, 2016. Consequently, an investor purchasing SWL shares before this date will be entitled to the final dividend. However, an investor buying SWL shares on or after Friday, 22nd July, 2016 will not be entitled to the final dividend.
Dividend Payment Date
The proposed dividend if approved will be paid on Tuesday, 30th August, 2016.
