ASX shares are broadly edging higher today, sending the All Ordinaries Index (ASX: XAO) up 0.3%.
But one little-known ASX share is leaving those gains in the dust, soaring 15% higher.
Any guesses?
If you said diversified financial services organisation Thorn Group Ltd (ASX: TGA), give yourself a gold star.
Why is the Thorn Group share price rocketing?
The Thorn Group share price is soaring after the ASX share announced a special dividend payment as well as a proposed capital return and share consolidation.
The company opted to make the special dividend payment based on Thorn's strong cash balance and the simplification of its business. According to the release, the directors consider that Thorn is presently holding funds in excess of its requirements.
The fully franked special dividend of 3 cents per share will total approximately $10.4 million. The ex-dividend date is 24 August and the special dividend will be paid on 8 September.
Thorn's dividend reinvestment plan (DRP) won't apply to the special dividend.
Also sending the ASX share higher today was the announcement that Thorn's directors are considering an additional 12 cent per share return of capital, worth around $41.7 million, along with a share consolidation in Q3 FY23. That would be subject to both regulatory and shareholder approvals.
Commenting on the developments, Thorn's CEO, Pete Lirantzis said:
We are delighted to be providing our shareholders with these returns following a three-year program to transform the company, both in a cash and operating position.
We are now a simpler and more efficient organisation well placed to grow further in the SME market with an expanded finance offering through a sophisticated technology solution.
Our balance sheet has been strengthened with the sale of assets, including Radio Rentals, and our capital position has enabled us to announce a special dividend and planned return of capital to shareholders.
How has this little-known ASX share been tracking?
Over the past 12 months, the Thorn share price has gained 42%. That compares to a full-year loss of 5% posted by the All Ordinaries.
Atop the price moves, the ASX share notes that "Collectively, shareholders have already received a total return of capital of approximately $52.6 million for the last two financial years."
