| 12 Dec 2012 14:28 ET |
IBI Group Inc. announces that its current dividend of $1.10 per common share per annum and payable monthly at $0.092 per month will be reduced 50% to $0.55 per share per year and will be payable quarterly at $0.1375 per quarter. This decision is effective as for the next dividend, to be declared on February 18, 2013 for shareholders of record as of February 28, 2013 and payable March 31, 2013. The distributions on the 5,025,778 ClassB units of the IBI Group partnership (which are exchangeable for common shares), held by IBI Group Management Partnership, will similarly be reduced by 50% and payable quarterly, effective at the same time.
Resetting of the dividend and of the distributions will result in the retention of approximate $13 Million in cash annually. This cash retained will be primarily used for the paying down of debt and enhancing the profitability and the balance sheet of IBI.
As indicated previously, IBI has reduced staff in line with committed work, and will continue to do so to enhance productivity and profitability. IBI Group notes, however, that the business of the firm continues to grow materially, both geographically and in diversity, continuing to support the maintenance of a significant backlog in business. The majority of the new business is from existing clients in Canada, the United States, the United Kingdom and other established areas of the IBI practice. Additionally IBI Group is succeeding in attracting new clients, new market areas and entering new facets of work. These include work in Intelligent Systems in Mexico and South Africa; projects in Urban Transit in North America and internationally; and an increase in projects for the private sector in developments in the United States as the economy recovers there from the recession of Q4 2008. Growth in resources for new work secured organically will be primarily from internal sources as required. Acquistions of new firms by IBI will be made very selectively, as in the case of the current purchase of ME Companies of Ohio.