COMPANY COMMENT: Incoming Dawn chief faces myriad problems
Dawn isn’t the company it once was and investors aren’t convinced and some say the targets will remain low after the interest rates improve
Distribution and Warehousing Network (Dawn) is not the company it once was. The supplier of construction and building materials has never recovered from the global financial crisis. It admitted as much when it recently announced that new CEO Edwin Hewitt would replace Stephen Connelly on April 1. Connelly is to become executive deputy chairman. SA’s dreadful economy is also keeping it in a rut. The share price plunged more than 31% on the JSE recently, mainly as a result of its R350m rights offer — at a heavy discount of R1 a share. It has signed a R200m bridge loan with Investec to fund working capital requirements that will be fully repaid from the proceeds of the rights offer in early April. Lower oil and mining resources prices, currency volatility and political and economic instability in SA, Mozambique, Zimbabwe, Zambia, the Democratic Republic of Congo and Angola have all taken a toll.There are reasons why remuneration committees should not use comparisons with sports stars t...
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