Scales Corporation Confirms Final Dividend for 2018 And 2019

20 May 2019

Scales Corporation Confirms Final Dividend for 2018 And 2019 Guidance

The Directors of Scales Corporation Limited (NZX:SCL) have declared a fully imputed final cash dividend for the 2018 Financial Year of 9.5 cents per share, to be paid on 5 July 2019.

Taking into account the 9.5 cents interim dividend paid in January 2019, cash dividends for the 2018 year total 19.0 cents per share, representing 75% of Underlying Net Profit for the year.

The dividend will be paid on 5 July 2019, with a record date of 26 June 2019.

Looking ahead to the current 2019 Financial Year, Directors have provided Underlying Net Profit Guidance for the full year of between $32.0 million and $37.0 million. Directors believe Underlying Net Profit is the most appropriate measure, at this time, to gauge company performance.

In providing Guidance for 2019 shareholders should note:

The combined business activities and balance sheet of the company have gone through a period of material change over the last 12 months, realising over $186.0 million from the sale of Liqueo, Polarcold and 50% of Meateor New Zealand, plus the reduction in associated working capital;

Underlying Net Profit is before the deduction of Non-Controlling Interests. For 2018 this covered the company’s investment in Fern Ridge, for 2019 this will cover Fern Ridge and Shelby;

The Guidance range implies an Underlying EBITDA range of $49.0 million and $55.0 million, from operations, compared to $48.5 million in 2018 (based on a like-for-like basis);

It should be noted Scales has received interest income of 4.0% on the Polarcold purchase price between signing and settlement which is recognised this year;

A further update will be provided at the Annual Shareholders’ Meeting on Wednesday 12 June, scheduled to be held in Napier this year. Directors will also confirm the final gross cartons harvested and estimated pack out percentage for Mr Apple, as provided historically.

About Scales Corporation

Scales Corporation is a diversified agribusiness group. It comprises three operating divisions: Horticulture, Logistics and Food Ingredients. The company’s diverse spread of activities gives Scales broad exposure to New Zealand’s agribusiness sector. Scales Corporation was founded in 1897 as a shipping business by George Herbert Scales. Today it employs more than 700 staff New Zealand wide. Find out more at www.scalescorporation.co.nz.

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