VITA RALLIES WITH PROFIT AND PAYOUT NEWS
Written on the 31 August 2016 by Laura Daquino
VITA Group (ASX: VTG) is rallying this morning, the stock trading almost 14 per cent higher, after news the Brisbane company will pay shareholders a record full year dividend on the back of its strong annual results.
Vita's board declared a record full year, fully franked dividend of 13.97 cents per share. This is a payout of $17.6 million to shareholders, marking a 75 per cent increase on the prior corresponding period.
"SMB is displaying all the same characteristics as the retail market was in 2009, a highly fragmented market."
Horne points out this is the fourteenth consecutive period of underlying EBITDA growth for her company, and the balance sheet remains in good shape to keep bringing Vita forward, with $24.4 million in cash at the end of the period, up from $15.6 million the year before.
"Vita's strategic partnership with the market leader Telstra, now more than 21 years old, will continue to be a key advantage in a highly competitive market," she says.
Until a couple of weeks ago, Vita shares were climbing to record highs. Hitting a peak of $5.10 on August 15, the company wrestled around the high-fours before beginning a sharp descent.