Farmers Business Developments plc is to pay out 10c/share at the end of November.

Chair of Farmer Business Developments plc Padraig Walshe has announced that the company is to resume paying dividends for the first time since the onset of the COVID-19 pandemic.

According to the company, the decision will typically mean a payment of €1,036 to shareholders before dividend withholding tax to over half of the company’s 4,400 mainly farmer shareholders who have the standard holding of 10,369 shares.

Preference shares

The company is also resuming the payment of dividends on its preference shares, which will benefit the holders of the 14% and 11% non-cumulative preference shares. The record date for dividend payment is 5th November 2021.

Farmer Business Developments plc had suspended dividend payments last year on a cautionary and uncertainty basis due to the unprecedented challenges caused by COVID-19.

Padraig Walshe said: “While uncertainty remains, the success of the vaccination programme and the reopening of hospitality have transformed the business environment in recent months.

“In reviewing our company’s financial situation, the board had regard to our strong balance sheet and the turnaround in our FBD hotels & resorts business since the reopening in June after five months of closure this year and severe business disruption last year due to the pandemic.

The board also noted the positive performance of the company’s other investments, including in FBD Holdings plc which reported a €22m profit before tax

“While our Irish hotels have stabilised and are recovering well, the performance of our Spanish resorts, Sunset Beach and La Cala, is lagging behind the Irish hotels, but we are seeing a steady recovery of business in Spain as international travel resumes and visitor numbers rise.

“Property sales at La Cala have enjoyed an exceptional year to date with 55 built units sold in partnership with Taylor Wimpey, as well as 10 villa plots and a townhouse site sold by ourselves. “The board also noted the positive performance of the company’s other investments, including in FBD Holdings plc which reported a €22m profit before tax in its half year results, and the continuing strong interest in the remaining development land adjacent to the new Berlin Airport held by our 61% subsidiary.”

Farmer Business Developments plc holds a 24.3% stake in the stock market quoted company, FBD Holdings plc, whose main business is FBD Insurance.