Briscoe Group surprised the market yesterday by announcing a special dividend of 10c a share, the share price rising 8% on the news.
The announcement, made at Briscoe's annual meeting in Auckland, would mean a windfall of about $16.7 million for managing director and controlling shareholder Rod Duke.
The dividend will be paid on June 28 to investors on the register at the close of trading on June 14, the company said in a statement. Interests associated with Mr Duke owned 78% of the retailer, which has about 214 million shares on issue, BusinessDesk reported.
Forsyth Barr broker Tom Bliss said the special dividend was a general distribution, rather than specifically aimed at paying cash out to Mr Duke.
"It is good to see one retailer going well, even in soft conditions. Interestingly, the dividend is for 10c and the share price went up 13c."
Shares of Briscoe rose 8% to $1.69 during the day.
Last week, the company reported a 6.5% gain in first-quarter sales, while warning that full-year revenue might be flat because last year's result was inflated by Rugby World Cup turnover in the second half.
Sales of the group, which owns Briscoes Homeware, Rebel Sport and Living and Giving, rose to $102.5 million in the three months ended April 29, from $96.3 million a year earlier.
Homeware revenue rose 5.7% to $66.1 million, and sporting goods sales climbed 7.8% to $36.4 million.
Forsyth Barr was maintaining its hold recommendation on the stock as Briscoe Group continued to offer solid long-term value, Mr Bliss said. His valuation assumed earnings before interest and tax stabilising about 9% for Briscoes Homeware and 6% for Rebel Sport.
