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- New Zealand retailer Briscoe (BGP) won’t be paying the 12.5c dividend it announced just a week ago – due to the enforced closure of its retail outlets
- Briscoe’s shopfronts are considered non-essential, so they’ll all be shuttered for at least a month as the nation goes into lockdown
- Company Group Chair Dame Roseanne Meo says the dividend cancellation is in the best interests of the company amid the uncertainty
- The company says it will continue to review available advice and data and is taking steps to protect the health and wellbeing of its team and customers
- Briscoe shares last traded on March 5, valued at $3.97 apiece
Briscoe (BGP) won’t be paying the 12.5 cent dividend it announced just a week ago due to the enforced closure of its retail outlets.
The New Zealand government has announced a nationwide shutdown of all non-essential services due to the COVID-19 outbreak. Briscoe’s shopfronts are considered non-essential, so they’ll all be shut for at least a month as the nation goes into lockdown.
Company Group Chair Dame Roseanne Meo says the dividend cancellation is in the best interests of the company during the uncertainty of the market.
“The decision has not been taken lightly and we will continue to monitor the situation with the view of paying a final dividend as soon as the Board considers it appropriate.”
Group Managing Director Rod Duke adds that recent trade has been erratic, and a lot of shoppers have moved online amid coronavirus fears.
“While this may not be a long-term market change, it still presents the most disruptive force to impact New Zealand retail – perhaps ever.
“The company is now required to cease retail operations for a minimum of four weeks. Due to the level of uncertainty around these compulsory store closures, the Group cannot forecast the extent of the impact from these unprecedented events.”
While the cancellation of the recent dividend will be disappointing for shareholders, it’s in the best interests of the company going forward.
In Briscoe’s full-year statement, it reported total sales of over $650 million, with a gross profit of over $250 million. This is a 1.6 per cent gain on the prior year.
The projected final dividend for shareholders also increased by over 4 per cent – but that projection has now been withdrawn in light of the store closures and ongoing uncertainties arising from the COVID-19 pandemic.
“We continue to review available advice and data on a daily basis and are taking steps to protect the health and wellbeing of our team and customers,” Rod added.
Briscoe shares last traded on March 5, valued at $3.97 apiece.
