Briscoe Group Ltd cancelled its final dividend payment yesterday. The 12.5c/share payment was due to be made next Tuesday, 31 March.
Group chair Dame Rosanne Meo said: “The board considers that the cancellation of the final dividend is in the best interests of the company as we face an unprecedented level of uncertainty. The decision has not been taken lightly and we will continue to monitor the situation with the view of paying a final dividend as soon as the board considers it appropriate.”
The company made its decision after the Government raised the Covid-19 virus alert level to level 3, rising to level 4 & a 4-week closure of non-essential businesses.
Group managing director Rod Duke said: “Recent trading across both the homewares & sporting goods segment has been erratic, with a strong trend for customers to shop online.
“We have yet to see the full scope of the national health response or the economic implications but it’s obvious that retail will undoubtedly be impacted. While this may not be a long-term market change, it still presents the most disruptive force to impact New Zealand retail – perhaps ever.”
“The Company is now required to cease retail operations for a minimum of four weeks. Due to the level of uncertainty around these compulsory store closures, the Group cannot forecast the extent of the impact from these unprecedented events.
“We continue to review available advice and data on a daily basis and taking steps to protect the health and wellbeing of our team and customers.
“While the cancellation of the recent dividend will be disappointing for shareholders, I am totally supportive and convinced it is in the best interests of the Group to ensure we protect the company both in the short-term and for the future.”
Attribution: Company release.