Parkin Company PJSC (“Parkin” or the “Company”), the largest provider of paid public parking facilities and services in Dubai, today announces its planned dividend payment for the first half (“H1” or “first half”) of 2024.
Key Highlights
• Following a strong first half operational performance, Parkin reported H1 2024 Net Income of AED 198.773 million and Free Cash Flow to Equity of AED 135.643 million.
• As guided at IPO, the Company will distribute the higher of Net Income or Free Cash Flow to Equity.
• The Company will distribute an interim cash dividend of AED 198.773 million to its shareholders at the end of October.
• On a per share basis, the dividend payment amounts to 6.63 fils per share.
Eng. Mohamed Al Ali, CEO of Parkin, commented:
“I am pleased to report that Parkin’s growth strategy delivered a strong first half year performance following our record-breaking IPO in March. The Company’s best-in-class operational, technological and enforcement capabilities continue to drive impressive results. I am proud of the performance that we have delivered, which is testament to the considerable efforts of the senior management team, with oversight from our experienced Board. Looking ahead, we are committed to providing attractive, sustainable returns to our shareholders. Parkin’s maiden interim dividend reflects both our strong financial performance and continued confidence in the Company’s future growth and cash generation prospects.”
Dividend Distribution
Parkin’s ability to pay dividends is dependent on several factors, including the availability of distributable reserves, capital expenditure plans and other cash requirements. Any level or payment of dividends will depend on, among other things, future profits and the Company’s business plan, at the discretion of the Board of Directors and General Assembly.
Subject to the aforementioned conditions, Parkin expects to distribute a minimum dividend payout of the higher of:
(i) 100% of Net Income; or (ii) Free Cash Flow to Equity
Distribution of a dividend is designed to reflect the Company’s expectation of strong cash flow generation and expected long-term earnings potential.
The Company intends to pay dividends semi-annually in April and October of each year.
Dividend distribution will be reviewed annually by the Board of Directors and the General Assembly, taking into account the Company’s cash management needs for operating expenses, finance costs and planned capital expenditures and investments. Additionally, the Board will consider market conditions, the current operating environment and future outlook.
Dividend Payment Timeline
10 October 2024 |
Last Entitlement Date |
· This is the last day on which an investor may purchase Parkin shares to meet the Record Date deadline and be entitled to receive the scheduled interim cash dividend payment for H1 2024 |
11 October 2024 |
Ex-Dividend Date |
· On this day, the Company's shares will begin to trade without the value of the scheduled dividend payment · An investor purchasing shares in Parkin on, or after this date, will not be entitled to receive the cash dividend |
14 October 2024 |
Record Date / Registry Closing Date |
· This is the date on which the Company will check its records to identify shareholders that qualify to receive the cash dividend payment · If you are recorded as a Parkin shareholder on this date, you will be entitled to receive the cash dividend |
28 October 2024 |
Dividend Payment Date |
· This is the date on which the Dubai Central Securities Depository will issue instructions for crediting the cash dividend to eligible shareholders · Payment of dividends to a UAE bank account may take up to three working days to process |