Kanika declares record dividend

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Kanika Hotels (KAN) surprised the market by announcing a record dividend for 2005, on top of a final dividend for 2004, taking its yield to a whopping 45%.

After reporting a doubling in its net profits for 2004 to CYP 735.000 from CYP 365.000 in 2003, the Board of Kanika announced the intention to pay a final dividend of 0.85 cent per share, more than double the 0.40 cent paid in 2003. The cash cost of the final dividend amounts to CYP 512.125 for a yield of 10.5%.

Kanika then surprised the market by announcing an interim dividend for 2005 of 2.75 cent per share, fixing the record date for March 11, with the stock set to trade ex-dividend on March 9 and 10. The dividend, payable on March 22 will cost the company CYP 1.65 mln in cash payout for a yield of 34%.