Lasco Distributors Limited [JSE: LASD] have been experiencing tremendous business performance recently. So much so, that they have decided to pay out an interim dividend amounting to $406.35 million to their shareholders. An interim dividend is a distribution to shareholders that has been both declared and paid before a company has determined its full-year earnings. Such dividends are frequently distributed to the holders of a company’s common stock on either a quarterly or semi-annual basis. The shares will be approximately $0.12 per share and paid out on April 30, 2018. Not only have they experienced improved company performance, Lasco Distributors has been receiving funds through their ongoing court case with Pfizer. The American drug manufacturers paid a out a multimillion dollar lawsuit when Justice Vivienne Harris awarded special damages of USD$77,075 (just over JMD$5.32 million), to Medimpex (using the 2007 exchange rate of $69.06 to 1) and $155,738 to Lasco Distributors.
Lasco has also completed most of their planned major capital projects, such as the warehouse expansion and the upgrading of their business application software. Both of which has increased business efficiency and enabled the company to experience savings due to decreased operational costs. With their continual plans to improve software systems, Lasco is poised to further maximize on cost-savings and operational efficiency. This can raise the value of their stock, and then provide increased dividends for present shareholders. Lasco has set quite a precedence for other local public companies to follow. With the gradual advancements of technology, more specifically software systems, Jamaican companies have a greater capacity for business improvements. If other companies follow in Lasco’s footsteps, then we can expect greater returns in the future, along with a highly competitive market.
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