Tradehold cuts dividend amid worry about Covid-19 effects
Tradehold said it could declare an interim dividend depending on the results for the half year to end-August
Tradehold, which has property investments in SA and the UK said on Thursday that it had reduced its dividend as the company looks to preserve cash amid the uncertainty of Covid-19.
The company, which holds a 74% stake in SA-based Collins Group, declared a dividend of 30c per share for the year ended February 29, from 55c previously. The board had initially anticipated a dividend of 60c. Tradehold said it could, for the first time, declare an interim dividend depending on the results for the half year to end-August 2020.
Headline earnings per share rose `by 15% to 9.5 pence in year to end-February and profit before taxation increased to £17.4m (R382m) from £14.2m.
Collins Group, which has a portfolio that largely comprises industrial buildings, grew its profit 55.8% to R321m during the period. As part of its strategy to offload noncore assets, the company sold 16 commercial buildings during the period.
“We are focusing on our core assets and, in doing so, selling noncore assets in SA, the UK and Namibia to free up capital. Similarly, if an attractive opportunity were to arise in the medium term, we would not be averse to withdrawing from Namibia,” the company said.
Tradehold's share price was unchanged at R9, and is down almost 25% so far in 2020.