VIL Declares Interim Dividend

Oct. 3, 2017, 6:31 a.m.


Vision Investments Limited has declared a second interim dividend of $.0584 cents per ordinary share amounting to $6,060,134.42, for the financial year ending March 31, 2016.

The dividend was declared last Friday. The first interim dividend was declared on September 29, 2015, and settled at $0.0375 cents, amounting to $3,652,500.00.

VIL’s market announcement noted that the company’s operating results for the financial year 2015/16 was satisfactory and achieved the profit before tax forecast that was disclosed in the Information Memorandum.

“The actual profit after tax was lower than forecast, as the actual income tax expense was higher due to two reasons,” the statement highlighted.

“In the Information Memorandum, it was assumed that the company will be listed on the South Pacific Stock Exchange in November 2015. Thus the profits for the four month period December to year end March 2016, were subject to the reduced income tax rate of 10 percent applicable to listed companies, compared to the 20 percent income tax rate applicable pre-listing.”

It said unavoidable reasons delayed the listing to February 29 this year, and thus the reduced income tax rate of 10 percent was applicable for only the remaining one month period until the year end of March 31.

“Also with the change in the income tax rate from 20 percent to 10 percent, the deferred income tax asset in the balance Sheet had to be reassessed at the new applicable rate of 10 percent, which resulted in a write-down of the deferred income tax asset and corresponding increase in tax expense.”

Both these factors, it noted, resulted in the increase in the actual tax expense, compared to that shown in the Information Memorandum.

In February, VIL became the second largest company listed on the SPSE by way of market capitalization ($181.6m).

Alongside other major sister companies, it comes under the umbrella of Vision Group, whose notable properties include the Hilton Fiji Beach Resort, Tadrai Island Resort and the recently opened Double-Tree Resort by Hilton.