LONDON (Alliance News) - Georgia Healthcare Group PLC on Tuesday set out a new dividend policy as it expects earnings growth over the next few years.
In November, the firm began a review of its expect cash generation as well as of the potential performance going forward, ensuring it could keep a capital structure and dividend policy which would still permit growth.
Over the next few years, Georgia Healthcare is targeting double-digit compound annual growth in revenue, and it also expects a better return on invested capital and "substantially" increased cash flow.
"This reflects both higher earnings and reduced investment requirements over the next few years, following the completion of our significant three-year investment programme," said Georgia Healthcare.
A new policy is now being set, to pay 20% to 30% of annual profit attributable to shareholders.
For 2018, Georgia Healthcare has declared a GEL0.053 per share payout, a 20% ratio of earnings.
Chief Executive Nikoloz Gamkrelidze said: "In addition to market growth, over the next few years we expect to benefit from recent investments and the increased utilisation of our new and existing hospitals as these translate into good growth and improved margins."
"The group's strong balance sheet and increasing operating cash flows, with improved earnings and lower investment capital expenditure requirements, will enable us to gradually reduce the business leverage and further improve our returns on invested capital."
Shares were untraded on Tuesday, last quoted at 199 pence each.