Betterware chairman defends pounds 9.8m dividend
Friday 25 April 1997
Mr Cohen, who with his family owns around 46 per cent of the group's shares, is not unknown to controversy. Shares in the group crashed from 278p in 1993 to 38.5p in 1995 after the family raised pounds 31m from the sale of part of their stake just months before Betterware was forced to issue a series of profits warnings and announced a slump in its annual results.
One City observer said of the latest move: "There is a problem in paying out a pounds 9.5m dividend principally to yourself. You could say it's in the interest of all the shareholders, but is it in their interest to flush all of the cash into Mr Cohen's pockets just before a general election? I don't know."
Mr Cohen denied any selfish motives yesterday and said the decision to pay the dividend had nothing to do with the election, declaring himself "not a political animal".
The proposed special dividend was being made for the benefit of all the shareholders, he said.
Referring to his family and his fellow directors, he said: "We kept 50 per cent of the equity all the way through. As far as we are concerned, the company is very cash-generative and we have no plans for this cash."
He said there would have been other complaints if the group had used the money, some pounds 12.6m at the beginning of March, to buy in its shares, which might have raised earnings per share, boosting performance-linked executive bonuses, or increased the family's control.
The announcement came as Betterware announced a rise in pre-tax profits from pounds 9.29m to pounds 11.5m for the 12 months to 1 March.
- 3 The enemy within: People who hear voices in their heads are being encouraged to talk back
- 4 Phil Neville backtracks on Tomas Rosicky 'I'd smash him' comments from Match of the Day 2
- 5 British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Paris attacks: Do not call Charlie Hebdo killers 'terrorists', BBC says
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Asteroid narrowly scrapes past Earth: how to watch the closest space rock for decades as it flies by
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Prince Philip set to be knighted by Australia: Celebrate by reading his greatest gaffes
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...