Andor Technology, the scientific digital cameras maker, has revealed that it will start paying dividends this year as it alleviated concerns about an order from a US customer.
"Taking into account the company's financial position, the trading outlook and the views of shareholders, the board considers it appropriate to commence the payment of dividends. We intend to adopt a progressive dividend policy which reflects the long-term earnings and cashflow potential of the company, whilst taking into account acquisition and investment opportunities," the firm said on Tuesday morning.
The group intends to recommend the payment of a final dividend of at least 2p per share in respect of the year to September 30th. Interim and final dividends will be held in August and February each year, respectively.
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Full-year revenues will be modestly ahead of the prior year with earnings expected to be in line with company forecasts. The group said it continues to see strong growth in Asia Pacific, offset by weaker sales in Europe and the US.
Andor's shares tanked in June (from around 550p) after the company reported that a slowdown in orders placed by two of its US OEM customers would lead to lower-than-expected sales in the second half. The company said that this would be a temporary slowdown in the case of the larger of these customers. The stock has been trading around the 350-400p in recent months.
However, the company announced this morning that this particular customer has now placed new orders totalling $3.2m which will be booked in the year to September 2013.
"While we experienced some challenges during the year, it is pleasing to now report that earnings are expected to be in line with the Board's expectations," said Chairman Colin Walsh.
"We believe the business remains well positioned for continued growth and this confidence is reflected in our recommendation to introduce a dividend."
By 08:09, shares were up 10.06% at 423.75p from Monday's close of 385p.
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