Despite the drop in our financial performance, the bright side though was our Group’s ability to continue paying excellent dividend payment of 23 cents per share or RM64.8million, keeping pace with year 2015’s record dividend payout. This handsome payout of more than double of net profit was achievable because Capex for FY 2016 was lower at RM8.9million (2015:RM31.7million) while Group’s overall net cash position remained healthy at approximately RM166million (2015:RM178million).
Details of FY 2016’s dividend payment are as follows:
1. First interim and special dividend of 9 sen per share amounting to RM25.4million on 29 March 2016
2. Year 2015’s single tier final dividend of 5 sen per share amounting to RM14.1million on 4 July 2016
3. Second interim and special dividend of 9 sen per share amounting to RM25.4million on 3 November 2016
In line with the many exciting new projects that are lined up to go into mass production, we are looking at Capex spending of up to RM60million in the first half of 2017 for machinery and equipment purchase. This huge capital outlay may warrant us to be more conservative in our dividend payout in the first half of 2017 and we expect to return closer to our historical payout ratio after that.