LONDON (Alliance News) - Northacre PLC shares jumped in early trade on Wednesday after the company amended its consultancy agreement with ADCM and said it would pay out an interim dividend of approximately GBP15 million.
Shares in the residential property developer were up 18% in early trade to 79.5 pence, making it the second biggest riser on the London market.
The amendments to its consultancy agreement with ADCM will mean the latter will no longer be entitled to receive a fee of 35% of profits earned by Northacre or the wider Northacre group as a result of any engagements entered into within the duration of the tie-up.
The performance of ADCM under the new agreement, and the annual fee payable to the firm, will be reviewed by Northacre yearly and any proposed rise in the fee will be subject to a shareholder vote.
The company also said it plans to declare an interim dividend of GBP15 million, adding it would make further announcements on the payout and the timetable in due course.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
