Gimv raises dividends – Companies

Gimv will, for the first time in six years, pay a higher dividend. According to the annual result, the investment company’s portfolio had a return of 20.4 percent in the financial year, which ran until the end of March.

Gimv invests in dozens of companies from different sectors. From a hamburger chain to a baby clothing store to various companies from the medical world and even a virtual brewery. Gimv is also a major shareholder in the Limburg IT giant Cegeka. Meanwhile, the investment company’s portfolio has grown to almost 1.5 billion euros. There are also more investments in the pipeline in the coming months.

The companies in that portfolio performed strongly with double-digit growth in both revenue (24 percent) and profitability (38 percent). That gave Gimv a return on that portfolio of 20.4 percent. That’s above the 15 percent that society is aiming for on average.

The net result for the broken financial year was EUR 174.3 million against EUR 205.7 million in the previous financial year. Regarding the current financial year – characterized by high inflation – Gimv says that the order books are still well stocked, but that an increase in turnover is more realistic than a further increase in the profit margin. “The year has not started badly,” said CEO Koen Dejonckheere. The CEO expects a declining economy later this year, possibly driven by declining consumer confidence. “But all in all, it’s not that bad so far.”

However, the company now sees room for an increase in dividends. After paying 2.50 euros per. share for five years, Gimv now proposes to its shareholders to pay out 2.60 euros. “We increase when it’s sustainable,” says Dejonckheere of the increased yield.

It is then not the intention to reduce this dividend – “except in exceptional circumstances”. “The strong results of recent years and the significantly increased investment portfolio give confidence to propose this increase,” it said.

Gimv invests in dozens of companies from different sectors. From a hamburger chain to a baby clothing store to various companies from the medical world and even a virtual brewery. Gimv is also a major shareholder in the Limburg IT giant Cegeka. Meanwhile, the investment company’s portfolio has grown to almost 1.5 billion euros. There are also more investments in the pipeline in the coming months. The companies in that portfolio performed strongly with double-digit growth in both revenue (24 percent) and profitability (38 percent). That gave Gimv a return on that portfolio of 20.4 percent. That’s above the 15 percent that society is aiming for on average. The net result for the broken financial year was EUR 174.3 million against EUR 205.7 million in the previous financial year. Regarding the current financial year – characterized by high inflation – Gimv says that the order books are still well stocked, but that an increase in turnover is more realistic than a further increase in the profit margin. “The year has not started badly,” said CEO Koen Dejonckheere. The CEO expects a declining economy later this year, possibly driven by declining consumer confidence. “But all in all, it’s not that bad so far.” However, the company now sees room for an increase in dividends. After paying 2.50 euros per. share for five years, Gimv now proposes to its shareholders to pay out 2.60 euros. “We increase when it’s sustainable,” says Dejonckheere of the increased yield. It is then not the intention to reduce this dividend – “except in exceptional circumstances”. “The strong results of recent years and the significantly increased investment portfolio give confidence to propose this increase,” it said.

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