Wait till next year for Telecity divis

published 7 November 2011

Cash is rolling in to finance the expansion programme at data centres operator Telecity but there is enough left over for the company to start paying dividends next year.

The company said trading in the third quarter remained strong and the outlook for the full-year remains positive.

The pan-European capacity expansion programme to meet customer demand is making good progress with available customer power now up to 68MW(megawatts), the company said.

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A further 6MW of planned customer capacity in Dublin is planned, taking total available and announced customer capacity across Europe to 124MW.

"I am delighted to be able to announce our intention to initiate a progressive dividend policy next year," said John Hughes, chairman of Telecity. "It is testament to the strength of TelecityGroup's business model that it is able both to fund strong organic and inorganic growth, while commencing dividend payments," Hughes claimed.

The market's joy at the prospect of dividend payments was constrained, with the shares up just 1.5p to 599p, possibly because the investment analyst community was expecting dividend payments to start this year; the consensus estimate for this year's dividend payment was 0.47p prior to this announcement. Next year, the market is expecting Telecity to pay out 1.62p per share in dividends.