Page 97 - S P Setia Annual Report 2016
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S P Setia Berhad Group                                                                                  95
          Annual Report 2016




                                                                                     Directors’ Report




          The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the financial
          year ended 31 December 2016.


          PRINCIPAL ACTIVITIES

          The Company is principally an investment holding company. The principal activities and other information relating to the subsidiary companies
          are indicated in Note 8 to the financial statements.
          There have been no significant changes in the nature of these activities during the financial year.


          CHANGE OF FINANCIAL YEAR END

          In 2015, the Company changed its financial year from 31 October to 31 December. In this regard, the previous reporting period covered
          a period of 14 months from 1 November 2014 to 31 December 2015. The current reporting year covers a period of 12 months from
          1 January 2016 to 31 December 2016. Consequently, the comparative amounts for the statements of comprehensive income, statements of
          changes in equity, statements of cash flows and related notes to the financial statements are not comparable.


          RESULTS

                                                                                                 Group      Company
                                                                                                RM’000        RM’000

          Net profit for the financial year                                                     899,279       680,592

          Attributable to:
            Owners of the Company                                                               808,030       644,356
            Holders of Perpetual bond                                                            36,236        36,236
            Non-controlling interests                                                            55,013            -
                                                                                                899,279       680,592



         DIVIDENDS
         At the Extraordinary General Meeting of the Company held on 20 March 2014, the shareholders of the Company resolved to approve the
         Company’s Dividend Reinvestment Plan (“DRP”). The authority granted to the Company to allot and issue new shares of RM0.75 each of
         the Company pursuant to the DRP was renewed by the shareholders at the 41st Annual General Meeting (“AGM”) of the Company held on
         18 May 2016.

         The DRP provides an option to the shareholders to reinvest either all or a portion of the declared dividends in new shares in lieu of receiving
         cash. Shareholders who elect not to participate in the option to reinvest, will receive the entire dividend wholly in cash.

         During the financial year, the Company paid the following dividends:
         (a)   A single-tier final dividend of 19 sen per share each amounting to RM499,416,016 in respect of the financial period ended
              31 December 2015. A total of 179,964,772 new ordinary shares of RM0.75 each were issued on 3 August 2016 at an issue price of
              RM2.65 per share under the DRP and the remaining portion of RM22,509,370 was paid in cash on 3 August 2016; and

         (b)   A single-tier interim dividend of 4 sen per share each amounting to RM112,738,145 in respect of the financial year ended
              31 December 2016. A total of 34,367,408 new ordinary shares of RM0.75 each were issued on 22 November 2016 at an issue price of
              RM3.11 per share under the DRP and the remaining portion of RM5,855,506 was paid in cash on 22 November 2016.

         The Directors now recommend a single-tier final dividend of 16 sen per share amounting to RM456,563,186 in respect of the financial year
         ended 31 December 2016. The financial statements for the current financial year do not reflect this proposed dividend, which if approved by
         the shareholders at the 42nd AGM of the Company, will be accounted for in equity as an appropriation of retained earnings for the financial
         year ending 31 December 2017.
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