AVA Capital Plc is targeting dividend payouts of up to 70 percent of its profit after tax, the company said after its board approved a new dividend policy on October 21. The target payout ratio will range between 35 percent and 70 percent of profit after tax, subject to the company's financial performance, liquidity needs, capital position and regulatory obligations.
The company said the policy reflects its commitment to delivering sustainable shareholder returns while maintaining financial resilience. AVA Capital stated that the framework seeks to preserve adequate capital for future growth and ensure compliance with applicable legal and regulatory requirements, while also recognising the need to reinvest profits to strengthen its capital base and finance strategic initiatives.
Dividend decisions will be guided by earnings, cash flows, capital adequacy, planned investments, strategic priorities and prevailing economic conditions, according to the company. The board may recommend a payout above or below the target range where circumstances justify it, and retains full discretion over whether to recommend a dividend based on the company's financial stability, liquidity and regulatory compliance.
The policy provides for both interim and final dividends, subject to applicable conditions. Final dividends will be recommended by the board based on audited financial statements and must be submitted to shareholders for approval at the annual general meeting. AVA Capital said the framework also allows for the possible allocation of part of its profit after tax to an employee profit-sharing scheme, and that dividend announcements will be communicated through regulatory disclosure channels and other approved platforms.
For investors in AVA Capital, the policy means dividend payments are not guaranteed in any financial year and will depend on the company's financial performance and capital needs at the time.