CLS Holdings shifting to twice-yearly dividends

CLS Holdings announced on Wednesday that it intends to make future distributions to shareholders by way of a twice yearly dividend, superseding its previous policy of using tender offer buy-backs.

The FTSE 250 firm said it intended for the first dividend to be a final dividend in respect of the year ended 31 December 2016, and announced with the group's full year results, which are expected to be posted on Wednesday 8 March.

In addition, at its annual general meeting on 26 April, the board said it will recommend a share subdivision of its existing ordinary shares of 25p each into 10 new ordinary shares of 2.5p each.

If approved, the share sub-division would take place following the payment of the final dividend.

“We believe that these changes will make CLS more easily comparable with other listed property companies and a more attractive investment proposition for new shareholders, with the aim of improving liquidity in the group's shares and broadening the shareholder base,” said chief executive Fredrik Widlund.