Tavistock Investments PLC (LON:TAVI) said it has received "overwhelming support" from shareholders for its plan to use £23mln from its share premium account to wipe out its deficit, paving the way to start dividend payments.
The company said the capital reduction would help to eliminate the historic deficit on the company's profit and loss account and create distributable reserves.
“This will enable the company to pay a dividend to shareholders, should the board decide to do so,” it said in a statement on Tuesday.
READ: Tavistock Investments plans rejig that would allow it to pay dividends
Tavistock has put forward an application to the court for approval of the capital reduction, which it expects to be effective in February.
The group said while it aims to reward shareholders, the capital reduction does not guarantee a dividend payment.