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Tavistock Investments plans rejig that would allow it to pay dividends

“One of the company's stated objectives has been to introduce, and subsequently to manage, a dividend stream for the benefit of shareholders,” the firm said in a statement

shareholders
The plan will be put to an investor vote

Shares in Tavistock Investments plc (LON:TAVI) were up strongly early on after the wealth management firm said it was proposing an administrative rejig that would allow it to pay a dividend at some point in the future.

The company currently has negative distributable reserves, which is a legacy from the firm’s previous business, SocialGo.

READ: Tavistock Investments very upbeat as money flows into managed funds

The plan is to seek approval to use £23mln from the share premium account to wipe out the deficit.

“One of the company's stated objectives has been to introduce, and subsequently to manage, a dividend stream for the benefit of shareholders,” the firm said in a statement.

“Whilst there can be no certainty that a dividend will be paid, the board of Tavistock now considers it prudent to take the necessary steps to enable the company to pay a dividend if and when it is considered appropriate to do so.”

READ: Tavistock Investments sells financial services business to Sanlam UK for £1mln cash

Reacting to the announcement, market makers pushed Tavistock shares 8% higher to 3.25p each.

 

Quick facts: Tavistock Investments PLC

Price: 1.4 GBX

AIM:TAVI
Market: AIM
Market Cap: £8.51 m
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