Seeka Limited [NZX:SEK] advises that it has reviewed the current environment and, with the uncertainty of Covid19 [Coronavirus], that it had decided to defer the payment of the current declared dividend of $0.12 per share. This dividend was payable to all shareholders on the register at 5pm, 19 March 2020. Under the Companies Act, all dividends in New Zealand must be paid within 20 days of the ex-dividend date. That being the case, the current dividend is cancelled and will be reconsidered by the Board at its meeting in June.
This decision reflects the uncertainty in the current business environment, the reported shortage of labour, and the lower forecast kiwifruit returns from Zespri rather than anything that has happened in the business to date. The Board, having considered those factors, consider it is prudent that the dividend be deferred to maintain balance sheet strength and stability. The dividend, and the application of the Dividend Reinvestment Plan, will be considered by Seeka in June at its Board meeting scheduled for June 17.
The Seeka Board of Directors also advises that the proposed increase of Director fees to be considered at the April Annual Meeting of Shareholders is withdrawn.
Michael Franks, Seeka Chief Executive outlined “while labour is short, Seeka has commenced the year well, operations are smooth and to plan and currently running to expectations.”
“The decision to cancel the dividend reflects the uncertainty across the New Zealand business and the need to make prudent decisions to protect the Company and maintain sensible debt levels.”
For further information please contact:
Michael Franks Seeka Chief Executive 021356516
Stuart McKinstry Seeka Chief Financial Officer 0212215583
Seeka Key
Contacts