Nov 9, 2021
ABF: Primark rollout says less than ramped up dividends
ABF appears to be acknowledging as much with its new capital allocation policy, which will return more cash to investors via buybacks and a special dividend, so long as leverage remains below 1 times adjusted ebitda. The inaugural disbursement, at 13.8p per share, brings total dividends for the year to 40.5p - a yield of 2.2 per cent. To its credit, Primark stores, when open, have an enviable magnetism for shoppers seeking cheap, wearable gear. Assuming no more closures, ABF expects Primark sales to increase by "At least" the £2bn lost by shut stores in the last financial year. Adjusted operating margins, at 5.7 per cent last time, are expected to recover to above 10 per cent.
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