Farmer Business Developments plc has announced the payment of a year-end special dividend for the second year running.

Once again, the special dividend will be at 17c per share. However, when added to the 14c per share ordinary dividend already paid to shareholders in July 2024, it means the year saw record high total dividend payments.

In 2023, the ordinary dividend was paid at 9c per share.

For a typical shareholder who invested £50 (€63) in the late 1960s and who would now hold 10,369 shares in the company, the total payouts in 2024 amount to €3,214, before the payment of withholding tax - a more than €500 increase on 2022 dividends.

Chair of Farmer Business Developments plc Pat Murphy said that “in view of our strong business performance and financial position”, the board decided to pay all of the special dividend received from FBD insurance to shareholders of the company.

Round up

The special dividend payment from FBD insurance was €1 per share, which amounted to a payment to Farmer Business Developments of €8.532m.

Murphy said the company the board had agreed to "round up the payment slightly" to €8.562m to ensure that 17c was paid on all ordinary shares of Farmer Business Developments plc.

FBD Insurance plc has only paid a special dividend in 2022 and 2023. During COVID years, the insurer paid no dividend at all.

As well as owning 23.8% of FBD plc, Farmer Business Developments plc also fully owns FBD Hotels and Resorts, as well as a broad range of smaller investments.

In 2023, the company reported profit after tax of €21.3m, up from €17.9m in 2022.