SK Jewellery cancels dividend to conserve cash amid Covid-19

SK Jewellery Group on Friday said it is cancelling a dividend of 0.5 Singapore cent per share that it proposed in February - when it announced its FY2019 results - to conserve cash amid the Covid-19 crisis. 

The board had, after "serious and careful deliberations", decided that it would be "appropriate" and in the group's best interest to cancel the dividend so as to conserve funds for the group's working capital requirements, should Covid-19-related measures be extended. 

The group added that other cost cuts have been implemented, including cutting management and staff's salaries. 

The virus outbreak has also resulted in SK Jewellery's retail outlets in various markets being closed for an extended period of time. This is expected to have a negative impact on the group's financial performance, cash flow and financial position during this period

SK Jewellery said: "The board seeks the understanding of the shareholders that the cancellation of the proposed FY2019 final dividend is in the best interests of the group, and seeks shareholders' support for the group in these challenging and unprecedented times."

In Singapore, the group's headquarters at Changi Business Park and retail outlets have been closed since April 7, in line with Singapore's circuit-breaker measures. The group's online retail business remains operational. 

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Its overseas operations in Malaysia, China and Thailand also faced temporary suspensions as a result of measures to curb the virus' spread. For instance, the group's retail outlets in Thailand have been closed since the government declared a state of emergency from March 25 to May 31. 

SK Jewellery's counter closed up 6.25 per cent to S$0.085 on Friday before the announcement.