Excess of largess prize dividend from McInerney

It's been a long time coming. For a decade investors in housebuilder McInerney have grumbled about the lack of a dividend. This week McInerney Holdings produced a vibrant set of annual results, pre-tax profits rocketing almost 300 per cent to £3.35 million on turnover increased from £39 million to £52 million. And, for its long suffering shareholders, at last a dividend.

Surging profitability has put a healthy gloss on the balance sheet. Gearing tumbles to 79 per cent, earnings per share nearly triples to 10.14p and, if current business targets are achieved, McInerney's current year profits could be in excess of £4.5 million. Given such an embarrassment of riches a distribution to shareholders is only right and proper. Although welcome, some would regard the nominal 1p per share payout as somewhat conservative. However, the excellent results, and the return to the dividend list, gave a strong upward impetus to the shares, which closed the week at 140p.