Catalist-listed Audience Analytics announced, on Jan 8, that it has adopted a dividend policy that aims to pay its shareholders dividends of at least 50% of the company’s profit attributable to equity holders.
The policy is applicable to the company’s next three financial years, FY2025, FY2026 and FY2027. The company's financial year ends on Dec 31.
According to Audience Analytics, the policy represents a “balanced approach” between providing its shareholders with returns while retaining enough earnings to fund its future growth.
“Retaining [a] minimum 50% of profit attributable to equity holders provides the group with flexibility in managing future cash flows and funding potential opportunities, such as acquisitions, expansion plans, or capital expenditures,” reads the company’s statement.
Furthermore, the policy will help provide “predictability and stability” for its shareholders, particularly income-focused investors. The policy also seeks to attract long-term investors looking for stable returns.
The declaration and payment of dividends will be determined by the company’s board. The board may also declare an interim dividend without requiring its shareholders’ approval. However, the company’s shareholders will have to approve the declaration and payment of a final dividend.
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In proposing any dividend payout, Audience Analytics’ board will take into account several factors including the company’s cash and retained earnings; financial performance; projected levels of capital expenditure and other investment plans and its working capital requirements and general financing conditions.
It will also consider possible restrictions on payment of dividends imposed on the group by its financial arrangements and the general economic and business conditions in countries in which the company operates.
"Our new dividend policy reflects Audience Analytics’ strong commitment to delivering sustainable value to our shareholders whilst maintaining the financial flexibility needed to drive long-term growth,” says the company’s chairman and managing director, William Ng.
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“By establishing a minimum 50% dividend payout ratio over the next three financial years, we are providing our investors with greater clarity and predictability on returns, while preserving our ability to reinvest in potential opportunities. This balanced approach aligns with our strategic priorities and demonstrates our confidence in the group’s future earnings potential,” he adds.
For the 1HFY2024 ended June 30, 2024, Audience Analytics reported earnings of $1.4 million, about 2.3 times higher than 1HFY2023’s earnings of $588,826.
For the FY2023, the company’s earnings stood at $4.6 million, 18% lower y-o-y.
Shares in Audience Analytics closed 1.5 cents higher or 4.35% up at 36 cents on Jan 8.
