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Koh Brothers lowers final dividend from 0.4 to 0.25 Singapore cent a share
CONSTRUCTION, property and engineering company Koh Brothers Group is reducing its first and final dividend per share for 2019 to 0.25 Singapore cent per share, instead of 0.4 Singapore cent per share as earlier proposed.
This comes as the Covid-19 situation has severely impacted economies in Singapore and overseas, affecting the group's core industries of construction, building materials, real estate and hospitality, the group said in a Singapore Exchange filing on Friday.
"Financial uncertainty in the current economic climate is expected to continue, prompting the need to conserve cash flow resources in the event that the Covid-19 measures are extended, and to meet anticipated business challenges," it said.
"Management is taking precautionary steps to adopt measures to conserve the cash resources of the group to sustain its business operations and ongoing projects. This is to ensure the viability of the group, and that its working capital requirements are met until the Covid-19 situation improves," the group added.
After "careful consideration and for sake of prudency", the board has therefore proposed a revised final dividend of 0.25 Singapore cent per share for the financial year ended Dec 31, 2019.
This dividend will be tabled at the forthcoming annual general meeting for shareholders’ approval.
The board will announce the record date and payment date for the proposed revised final dividend in due course.
Koh Brother shares last changed hands at S$0.17 on June 3.