Gaming machine supplier Ainsworth Game Technology says it may start paying shareholders dividends in 2013.
The company listed on the Australian Securities Exchange in December 2001.
Company chairman Len Ainsworth, 89, also said on Wednesday that he may sell some of his shares in the company to improve its liquidity.
Mr Ainsworth holds more than 51 per cent of the company’s ordinary shares, according to Ainsworth Game Technology’s 2012 annual report,.
The company, which has a market capitalisation of about $740 million, had only 2,947 shareholders as at September 14, 2012.
Mr Ainsworth told shareholders at the company’s annual general meeting in Sydney on Wednesday that the payment of a dividend in 2013 was subject to approval of the board and the financial performance and outlook for the company.
“The board constantly reviews the company’s capital position, and in light of the current strength of the balance sheet and expected strong forecast cash flows, anticipates the payment of an initial dividend in FY13 (the 2013 financial year),” Mr Ainsworth said.
He said the board also anticipates the introduction of a dividend policy structured to maintain the company’s ability to invest in value-creating projects.
In August, Ainsworth Game Technology booked a 178 per cent rise in annual net profit to $64.3 million.
Mr Ainsworth noted the recent rise in the company’s share price which had led to a broader, more diverse range of shareholders.
“The board, including my wife and I, expect to pursue opportunities to improve the liquidity of the company’s issued shares through the gradual sell-down of some of our existing shares,” Mr Ainsworth said.
“The progression of this objective is conditional upon an acceptable share price at the relevant time.”
Mr Ainsworth said the board was currently reviewing its composition and size, with a view to broadening its skills and expertise.
Mr Ainsworth said the company had finished the 2011/12 financial year in a strong financial position, and the company had good growth prospects.
“Our strategic focus within key international regions is expected to continue to improve financial returns in FY13 and beyond,” Mr Ainsworth said.
Ainsworth chief executive Danny Gladstone said revenue for the first half of the 2012/13 financial year was expected to grow by at least 20 per cent, compared to the prior corresponding period, as the company grows in domestic markets and expands further overseas.
Profit before tax was expected to rise at least 25 per cent above the $18.8 million profit before tax in the prior corresponding period.
Mr Gladstone also said Ainsworth Game Technology had entered into an agreement with GameAccount Network, under which GameAccount will distribute Ainsworth’s online slots throughout GameAccount’s European network of licensed internet betting and gaming operators.
Shares in Ainsworth were four cents higher at $2.34 at 1352 AEDT on Wednesday.
