First Active is recommending a reduction of about €160 million in the capital of the company, equal to €1.12 per existing ordinary share, as it posted a 96 per cent rise in full year profits.
Referring to the capital restructuring, it said a combination of the successful restructuring of its business, the growth in profitability and the disposal of the company's interest in Britannic Money has resulted in First Active having a strong capital position.
It said the board is satisfied that the amount of shareholders' funds now held in the company is significantly greater than the amount required to support the underlying business.
The process being recommended to implement this proposal is for the company to issue two new bonus shares for each existing ordinary share held by shareholders.
The comments came as it posted a pre-tax profit for 2002 of €106.8 million, up 96 per cent, on operating income of €129.3 million against €114.8 million.
Referring to outlook it said the economic and demographic factors underlying its business remain strong, adding the outlook for the group is positive.
AFP