Perenti defers $24m dividends

Perenti Global has put dividends on hold to boost its financial position in response to the COVID-19 pandemic, but says the virus has not yet affected the business.

The company has deferred its 3.5-cents interim dividend payment, totalling $24 million in dividends, to October 20.

Perenti said it would focus on immediate measures to conserve cash in light of economic uncertainty surrounding the coronavirus outbreak.

The decision to defer its dividends is one of several cash preservation initiatives, Perenti says.

“The board and management team is working through a range of measures across the business to ensure we have a strong cash position to withstand the challenges that COVID-19 is presenting globally,” Perenti managing director Mark Norwell said.

Perenti said capital and liquidity management would become its primary focus.

It has around $290 million in cash and $90 million in undrawn revolving credit facilities.

The company said it also had access to equipment finance facilities.

At the same time, Perenti announced it would reactivate its dividend reinvestment plan, with effect from April 21.

Shareholders who elect to participate in respect of the 3.5-cents interim dividend will receive their shares on April 28 and a cash payment on October 20.

Shares in Perenti closed up 9.4 per cent to trade at 52 cents.