LONDON -- Shares in scientific digital camera manufacturer Andor (LSE: AND.L ) leapt more than 10% this morning to 425 pence at the time of writing, as the company's trading update announced it is to commence dividend payment.
The statement said: "We intend to adopt a progressive dividend policy which reflects the long-term earnings and cashflow potential of the Company, while taking into account acquisition and investment opportunities."
Chairman Colin Walsh commented:
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. We believe the business remains well positioned for continued growth and this confidence is reflected in our recommendation to introduce a dividend.
The board will recommend the payment of a final dividend of "at least 2 pence per shares" in respect of the year ending Sept. 30 at the next annual general meeting, expected to be held in February 2013.
This comes off the back of results that indicate revenue will be marginally ahead of the previous year, with earnings in line with expectations. The better-than-expected news follows an announcement in June that sales would be down because of a slowdown in orders placed by two of the company's U.S. customers. However, new orders were placed to the value of $3.2 million, with further orders expected.
Long-term holders will be delighted with the news; Andor's shares were selling at a low of 42.50 pence in 2008 and have now 10-bagged to their current price in just four years.
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