Dividend policy

Dividend policy

Accell Group strives for a stable dividend policy, with the aim of paying out at least 40% of its net profit. Historically speaking, the dividend pay-out percentage has been around 50%. Accell Group proposes to pay an optional dividend of € 0.50 for the financial year 2018 (2017: € 0.50), in cash or shares. The dividend proposal is based on the net profit excluding exceptional income (related to the revaluation profit on the acquisition of Velosophy and Beeline, which amounted to € 9.2 million) and expenses (related to € 1.4 million extra pension expenses in the United Kingdom and € 3.5 million largely related to restructuring) in 2018, and is equivalent to a pay-out ratio of 83%. Over the past five years (period 2014 through 2018) Accell Group has paid out a combined cash and stock dividend to shareholders with a value of € 78.4 million.

 

An optional dividend enables Accell Group to realise a higher pay-out while maintaining a strong balance sheet for the roll-out of our strategy and possible future acquisitions. This is an excellent fit with our growth strategy. In addition to a high dividend return for the shareholders, the optional dividend also enables Accell Group to improve its solvency ratio. Our dividend return and the type of dividend we pay out are competitive compared to other listed companies. In the previous four years (2014 through 2017), an average of around 51% of our shareholders opted for a stock dividend.