Textured Jersey records Rs 628m PBT

Textured Jersey Lanka PLC (TJL) declared a final dividend of Rs. 0.36 per share, subject to shareholder approval. This is in addition to an interim dividend of Rs. 0.12 per share declared by the company in March 2012, thereby totalling the dividend during the year to Rs. 0.48 per share.

This gives a dividend pay-out ratio of 50 percent, as per the published unaudited profit of Rs. 628m for FY 2011/12, and a dividend yield of 6.4 percent at the current share price of Rs. 7.50.

The dividend pay-out of 50 percent is well in excess of the 1/3rd dividend pay-out policy that the company announced it would follow at its IPO in June 2011, and confirms the company's commitment to enhance shareholder return and the management's confidence in the company's outlook.

The management is actively pursuing inorganic expansion options within the South Asian region via an acquisition of an existing facility.

Acquisition of operational facilities, which may now be available at a reasonable price following last year's industry upheavals, should provide a faster return than organic expansion and yield optimal returns on the IPO funds.