Greggs dish out £20m special dividend

British baker Greggs announced a £20m special dividend and said sales in the first four months of the year had exceeded its expectations.

Greggs

The company, which sells sausage rolls, sandwiches and pastries from 1,656 retail outlets, said that after a capital structure review it had decided to scrap a proposed share buyback and would instead pay a special dividend of 20 pence per share on July 17, in light of its strong cash position.

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Greggs said that rising consumer disposable incomes together with improvements to its sandwich and breakfast options had helped total sales for the 16 weeks to April 25 rise by 5 per cent, with sales at its shops open over a year up 5.9 per cent, ahead of its expectations.

The company said it now expected a first half performance ahead of its expectations, although the second half would see the firm come up against stronger sales comparatives and a less certain cost outlook.

Greggs said it had completed 69 refits and opened 24 new shops with 18 closures.