Covid-19: Julius Berger revises corporate action in move to retain cash

On March 13, 2020 Julius Berger announced a dividend pay-out of N2.75kobo per 50kobo 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 pay-out 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.

The Board, acting proactively, has decided that it is prudent to withdraw its previously announced intention to recommend the payment of a final cash dividend of N2.75kobo per 50kobo 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 N2kobo per 50kobo share.

The company said the savings from paying a cash dividend of N2kobo together with the measures taken with respect to operational costs and capex savings, will ensure that more cash will be retained within the business of the Group.

The unprecedented and novel COVID-19 global pandemic, and the ensuing lockdown and social restrictions, which is being experienced globally, Nigeria inclusive, is predicted would have operational effects on businesses and governments, and to lead to a global recession.

“Nigeria is not be immune from the unfolding global issues, especially when one also takes into consideration the additional crisis in the global Oil Market and expected declining revenues from Crude Oil Sales.

The company noted that 2020 will be a difficult year for the Country, individuals and businesses, in particular companies in the Construction sector”, Julius Berger said in a statement at the Exchange.

“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 Board of Julius Berger has 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.

The Group’s financial position remains strong as the first quarter results will present, and the Board remains 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 said it 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.

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By Iheanyi Nwachukwu • April 28, 2020

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.