Retail and distribution business concern, Axia corporation limited has deferred payment date of the interim dividend to its shareholders that was due tomorrow (April 24) to 28 May due to lockdown restrictions and uncertainties in the global economy.
The decision comes at a time some companies are pondering reversal of dividend payments announced prior to the severity of the pandemic as businesses might need funds to sustain a recession already predicted.
“A notice was published on 12 March 2020 in respect to a declaration by the Board of Directors on the payment of an interim dividend of 4.60 ZWL cents per share in respect of shareholders appearing in the register of shareholders on the record date,”
“The payment date of that interim dividend was fixed as 24 April 2020. The Board of Directors wish to advise shareholders that it has taken the decision to defer the payment date to 28 May 2020, with the approval of the Zimbabwe Stock Exchange. This is in light of the Covid-19 lockdown in force in Zimbabwe as well as the uncertainties surrounding local, region and global economies,” the company wrote.
Axia corporation which also controls TV Sales and Home, Transerv and Distribution Group Africa (DGA) recorded 4 percent revenue growth of $ 1.7 billion in its 2020 Half year performance to 31 December 2019.
Zimbabwe has been in lockdown due to the Covid-19 pandemic and the development has halted all administrative operations across the country.
However, with uncertainties over the economy in months ahead, most companies are likely to suspend or deffer dividend payments.
Earlier this month, Miekles Limited also deffered dividend payment that was due to its shareholders that was initial slated for 8 April and announced it would pay around end of this month due to the Covid-19 situation.