Hilton Food sticks with dividends after 2019 profit increase
By Sean Farrell
Date: Tuesday 07 Apr 2020
(Sharecast News) - Hilton Food said it intended to keep paying dividends during the coronavirus crisis as the food packing business announced an increase in profit for 2019.
Adjusted pretax profit for the year to the end of December rose 8.8%, or 10.2% excluding currency swings, to £49.7m as revenue increased 10% to £1.8bn. Reported pretax rose 9.2% to £47.3m
Profit growth was driven by strong performances in the UK and Australia, where Hilton opened a new facility in Brisbane.
The company proposed a final dividend of 15.4p a share taking the total 2019 payout to 21.4p a share - unchanged from the year before. The move shows Hilton taking a different path from the many companies deferring or cancelling dividends to preserve cash during the crisis.
"The board considers that maintaining the group's dividend policy since flotation remains appropriate, given the continuing strategic progress achieved in 2019 and Hilton's strong cash generation," Chairman Robert Watson said. "While there is significant uncertainty over the extent of the impact and longevity of the Covid-19 outbreak, we have so far coped well with the challenges and are confident that through our local operating model and financial strength we are well placed."
The company's shares rose 4.3% to £10.28 at 08:31 BST.
Hilton said all its facilities were open during the Covid-19 crisis and that the pandemic would stretch its business. Based on scenarios of reduced business the company can operate well within banking covenants with adequate headroom under existing credit facilities, it said.
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