Originally Posted by
Baa_Baa
$70 million capital return not far away
the meeting includes a special resolution regarding the return of approximately $70 million by way of a court sanctioned scheme of arrangement (scheme). In this regard, sky chairman philip bowman confirms receipt of a binding ruling from the new zealand ird in his address to shareholders, satisfying one of the conditions to the scheme. Should the special resolution be passed at the meeting, satisfying the other condition to the scheme, sky expects to seek final orders from the high court sanctioning the return of capital shortly thereafter.
Increase dividend payout range to 60%-90% FCF
mr bowman will also provide an update on the company’s dividend policy and signal the potential for additional capital allocation measures: “as a further demonstration of the board’s confidence, and with reference to our view on cash generation and appropriate levels of leverage, we have made an amendment to sky’s dividend policy. Going forward, the previously advised pay-out range of 50% to 80% of free cash flow (excluding one-off items) has been increased to 60% to 90% on the same basis. We are also confirming the definition of free cash flow as cashflow from operations less both replacement and growth capex, but excluding one-off items such as material acquisitions or disposals of assets.
Dividend guidance increased to $18m-$24m
“as a result of the change, sky’s dividend guidance for fy23 has been increased to between $18m and $24m. This change is a positive demonstration of our ongoing commitment to return surplus cash and one that i trust shareholders will appreciate.”
On-market shares buyback programme
“consistent with the board’s stated capital allocation strategy and focus on value creation, the board is currently minded to initiate an on-market buy-back programme following the announcement of the interim results, noting that the size of any programme would be determined by reference at that time to the prevailing share price, the cash position of the company, the economic outlook, and the liquidity of our shares in the market.”
Boom! The turnaround strategy is working.