Bowler Metcalf warns of operational challenges ahead
A disruptive strike is one of the issues facing the plastics packaging specialist
Shareholders in perennially profitable plastics packaging specialist Bowler Metcalf had little time to celebrate a large special dividend before being brought back to earth by a frank assessment of operational challenges at an annual general meeting on Wednesday. Earlier this week Bowler declared a special 305c a share (or R267m) dividend from the proceeds received from the recent sale of its major share in beverages business SoftBev. While shareholders expressed gratitude for the larger-than-expected payout, the management warned of several operating challenges for the trading period ahead. CEO Friedel Sass noted a disruptive strike hampering parts of the plastics packaging sector, a continued production overcapacity thanks to “rogue operators” and low consumer demand. “Our niche is under pressure. The return on turnover is seriously under pressure.” Asked whether the remaining part of the proceeds garnered from the SoftBev sale will be used for new opportunities, Sass said Bowle...
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