Steel & Tube Holdings Ltd cancelled its interim dividend last Friday, a week before scheduled payment.
Company chair Susan Paterson said Steel & Tube would continue to monitor the impact of the Covid-19 virus and would reassess the payment of dividends in line with policy following completion of its financial statements for the year to June.
Steel & Tube had announced the 1.5c/share interim dividend on 24 February. After a heavy loss & no final dividend in 2018, the company restored both its interim & final dividends in 2019.
Ms Paterson said of the latest reversal: “Whilst trading currently remains in line with expectations, the rapid development & future uncertainty of this unprecedented situation requires us to take due care to protect the interests of all of our stakeholders. In light of the uncertainty, the board considers it prudent & in the best interests of the company to cancel the interim dividend payment. This decision has not been taken lightly. We realise our shareholders may be disappointed, but we ask for their understanding amid these uncertain times.”
She said one positive for the company was that it was well placed to support the infrastructure programme the Government has announced.
26 February 2020: Steel & Tube confirms half-year loss
Attribution: Company release.