RYAN CHIGOCHE
Listed diversified group Innscor Africa has paid out US$453 588 as a dividend to its Employee Share Trust which was created to empower the group’s employees.
The Trust was formed in 2014 and received 1000 ordinary shares in Innscor Africa Limited.
These shares entitle the Trust to nearly 5% of any dividend declared and paid to ordinary Innscor Africa Limited shareholders.
Addressing employees, Innscor board chairman Addington Chinake said this is the first US$ dividend payout adding that the board remains committed to growing the trust.
“Significantly the trust dividend payouts have grown as the company profitability increases. Since 2015 the trust has paid out an estimated US$3m in dividends. Your company continues and have a dividend yield of 4% which confirms that our business is on a healthy growth trajectory. It is my pleasure to present this morning our first US$ dividend payout since the re-introduction of the multi-currency regime in 2019,” Chinake said on Monday.
“I would like to assure you that the board remains committed to supporting this trust which is now almost 10 years of age.”
The Trust also has a 30-million-share option to subscribe for Innscor Africa Limited shares at the volume-weighted average price of Innscor Africa Limited shares during a 60-day period that expires in December 2024.
An employees’ representative who also spoke at the ceremony expressed gratitude as they are looking forward to benefit greatly from the Trust.
In its financial results for the 12 months to June 30, 2022 revenue for the group rose 49% to ZW$290.780bn from ZWL$195.08bn.
Profit grew 350% to ZWL$53.68bn in the period under review from ZWL$11.93bn achieved in the prior comparative period.
Chinake said the growth in profitability will also increase the dividend payout of the trust.
In the 2023 financial year Innscor is buoyant despite the challenges in the operating environment with excessive power cuts now the order of the day.
“In terms of our financial year, I think at the moment you saw our trading update all the indications are positive. We are performing above budget for most of the units and definitely we are above prior year. So as a company we are anticipating a reasonable profit for the financial year 2023,” Chinake said.
