Vesuvius reinstates dividend, sending shares higher

Shares in Vesuvius sparked on Tuesday after the engineer confirmed it was reinstating dividend payments.

The firm declared an interim dividend for 2020 of 3.1p per share, compared to 6.2p a year previously.

Vesuvius said it had sufficient liquidity and overall balance sheet strength to justify the payout, adding: "The board recognises the importance of dividend payments to shareholders, and has determined that this level of dividend is affordable at the current level of business activity."

As at 1015 BST, shares in Vesuvius were ahead 5% at 422.6p.

Vesuvius is a specialist in molten metal flow engineering with customers across the steel and foundry industries. It was hit by "significantly lower" global steel production and industrial output on the back of the coronavirus pandemic and in July revealed a slide in revenues and profits. It also pulled the interim dividend.

However, last month it announced it had paid back a loan issued through the Bank of England’s Covid Corporate Financing Facility earlier than expected, following signs of "marginally improving" levels of business activity.

The firm is next due to update on trading on 12 November, when it will also provide guidance for the full year.

The dividend will be paid on 4 December to any shareholders on the register at the close of business on 30 October.