OK declares dividend

reward shareholders.

The Zimbabwe Stock Exchange-listed retail giant will make the pay out on one billion shares out of the two billion authorised but unissued ordinary share capital.
It joins Econet, Innscor, Colcom, Zimplow, Fidelity, Delta and CBZ on the list of some of the firms that have rewarded shareholders this year after good results.

While there is a good number of companies that posted a strong set of financials this year, many decided to forego dividends to re-invest the money.
Notwithstanding financial difficulties, analysts have started questioning directors’ capability to deliver a return on investment under the circumstances.
OK said the record date for the dividend will be December 16 and will close a day later, reopening on January 19, 2012 and payment will be January 10, 2012.

“Notice is hereby given that the company has declared an interim dividend number 13 of US0,15c for the six months ended September 2011,” said OK.
The dividend comes on the back of a solid set of financial results for the interim period during which the listed retail giant posted US$3,9 million profit.

The supermarket reported a 1 900 percent increase in profit over the same period last year on high sales growth. Revenue were up 61 percent to US$185,6 million.
During the period under review earnings per share increased by 1 167 percent to US0,04c from US0,38c per share made during the prior comparable period.

All the company’s stores were adequately stocked throughout this period.
This combined with effective sales and marketing programmes, generated significant growth.

OK shares traded at US0,10c on the ZSE yesterday. Since the adoption of the multi-currency system in 2009, the local retail sector has emerged strongly, with consumer spending returning to some degree of normality.

Wages and salaries have also been steadily improving while availability of goods contributed to the general stability of prices.
Inflation, which, at last official count reached 231 million percent in July 2008, has since gone down, with 4,2 percent annual rate, reported last month in what has enhanced predictability.