Northbridge Industrial Services PLC - Burton-on-Trent-based specialist industrial equipment manufacturer - Proposes a restructuring of the company's capital reserves through a capital reduction, which will involve the share premium account holding GBP29.9 million being eliminated, and the Profit and Loss account be credited with an equal sum to remove accumulated losses, forming a positive distributable reserve.
There will be no change in the number of shares after the capital reduction is implemented.
"In light of the group's improved performance, the board believes that it will be considered desirable in the future to commence paying dividends to shareholders. However, the company currently has negative distributable reserves and is, therefore, prohibited under the Act from making distributions to its shareholders, including the payment of dividends," Northbridge stated.
The capital reduction is conditional on gaining 75% shareholder approval at a general meeting, due to be held on October 18.
Current stock price: 171.50 pence, up 5.5% on Wednesday
Year-to-date change: up 74%
By Dayo Laniyan; dayolaniyan@alliancenews.com
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