LONDON (ShareCast) - Electronic components distributor Acal has proposed a near 10% hike in its full year dividend, despite continuing concerns over the current economic climate.

Acal said that while the climate does remain tough and uncertain, it has seen signs of improvement as customers begin to invest in newer technologies.

Chairman John Curry has also blasted the Higgs corporate governance report, suggesting that while undoubtedly some of his proposals are relevant, “for the bulk of smaller companies the prescriptive compliance may be a burden too far.”

The group added that it aims to combine organic growth within the group with a number of successful acquisitions.

Acal reported a 6.3% fall in pre-tax profit to £13.4m against £14.3m last time, while turnover fell 8.4% to £272.1m.

In spite of the fall in profits, Acal has proposed a 9.8% increase in its full-year dividend to 20.1p compared to 18.3p.

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