Crean reassurance on dividend policy

A 50 per cent cut in the amount of profit paid out in dividends to Crean shareholders would not necessarily mean a corresponding reduction of 50 per cent in the cash dividend, the chairman, Mr Domhnall McCullough, told the James Crean annual meeting yesterday.

A 50 per cent cut sounded very drastic, but the company was hoping profits would grow. The value of the Crean shares should also increase, he said.

Mr McCullough was responding to an expression of concern from a shareholder about the proposed changes to dividend payouts due to be introduced at the time of the final dividend.

The chief operations officer, Mr Martin Delany, said that in the past the company had paid out more than the average for the Irish Stock Exchange. The change was consistent with the company's move from being an industrial holding company towards being a more focused one.

The new proposed dividend ratio would be every much the norm", he said.

A shareholder, Mr Kevin Anderson, said he normally took great pleasure in complementing the company's directors but now felt it appears you have lost your way".

Mr Delany said it was hoped the restructuring of the company into one with 3 core areas would be completed in the next 2 to 3 months with the sale of the group's florists' supplies and paper conversion businesses in Britain.

Speaking after the meeting, he said the company was looking at a number of acquisitions in the food and paper and packaging sectors. They were talking to four or five companies" seriously and some very seriously. He was hopeful that one company in each sector might be purchased by the year's end, with one acquisition being in the US and one in Britain or Ireland.

In all, the company could have £35 million to £45 million to spend after the restructuring was complete.

Mr Delany said the company intended retaining the 3 core divisions of food, paper, print and packaging, and electrical wholesaling. Mr McCullough told the meeting the company considered the appointment of suitable new non-executive directors to be a matter of priority. Mr Don Godson, non-executive director, did not put himself forward for re-election. It is understood the company is seeking two new non-executive directors.