The board of Julius Berger has revised its earlier proposed dividend of N2.75 Kobo to two naira per dividend, having reviewed the impact of the novel coronavirus pandemic on its finances and operations.
In a notice to the Nigerian Stock Exchange (NSE), on Tuesday, the construction company said the Board, acting proactively, has decided that it was prudent to withdraw its previously announced intention to recommend the payment of a final cash dividend of N2.75 Kobo per 50 Kobo share, and instead recommend to shareholders at the 50th Annual General Meeting scheduled to hold on June 18, 2020, a final cash dividend pay-out of N2.00K per 50k share.
The board added that the savings from paying a cash dividend of N2.00K, together with the measures taken with respect to operational costs and capex savings, would ensure that more cash will be retained within the business of the Group, having carefully considered the emerging social, operational, financial and economic impact of the COVID 19 pandemic, the outlook for Nigeria for the Financial year 2020 and the impact on the business and cash flows of the Group.
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“These trying times for corporates globally is expected to force a rethink of spending plans by corporate boards to protect liquidity and ensure long-term sustainability while balancing the needs for return to shareholders,” the statement said.
The company, however, assured that the Group’s financial position remained strong as the first quarter results indicated, and the Board remained strongly confident of the post-COVID 19 future of the business of the Group and its strategic direction to remain a leader in its operating sectors.
“Julius Berger will continue to closely monitor the ongoing developments in relation to COVID-19, and would continue to take appropriate actions to ensure business continuity and future growth.”
It will be recalled that on March 13, 2020, Julius Berger announced a dividend pay-out of N2.75K per 50K share for the financial year ended December 31, 2019, and a bonus of 1 (one) new share for every existing 5 (five) shares held.
The dividend payout was based on the strong performance of Julius Berger for the financial year ended December 31, 2019, as was evidenced in the Audited Consolidated Financial Results released to the Market on March 16, 2020.
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