Valamar decided not to propose a dividend payment for the year 2019. Besides that the company issued another statement regarding the implications of Covid-19 on their operations.
Valamar published a document on the Zagreb Stock Exchange announcing that the Management Board has decided to cancel their GSM and withdraw their dividend proposal.
As a reminder, the Management Board and Supervisory Board initially proposed a dividend of HRK 1.2 per share, implying a payout ratio of 52%. Such a dividend was by HRK 0.2 per share higher compared to the one paid in 2019.
In the graph below, we are bringing you historical overview of the company’s dividends.
Dividend per Share (HRK) & Dividend Yield (%) (2015 – 2020)
Statement Regarding Covid-19
The occurrence of exceptional circumstances and the introduction of extraordinary measures to prohibit the gatherings, movement, hospitality venues, led to a consequential and immediate disruption of the Company’s business, cancellation of accommodation of other contracted services by partner agencies and guests during the pre-season period, so far with an uncertain impact on the months of the main season.
Following the tightening of general prevention measures by the authorities, on 15 March 2020 all previously opened catering establishments were closed and until further notice their reopening is delayed. In addition, a decision was made to suspend investment work at all construction sites due to restrictive measures and increased risk to the health of all participants.
Given the global reach of problems caused by the unpredictable spread of the COVID-19 virus, closed border crossings of surrounding countries, a number of obstacles to the free transfer of passengers, goods and services to many important markets for Valamars, at this point it is still too early to give quantitative estimates regarding the negative impact of COVID-19 on business of Valamar in the coming period.
In order to achieve business continuity with a primary focus on escalation plans for the Company’s liquidity and solvency measures, starting on 1 April 2020. The program “break, restart of the business” will be launched for 30 to 90 days.
Given that the tourist facilities have been temporarily suspended, in accordance with the current decisions of the Croatian authorities, Valamar will close its facilities until 30 April 2020.
The temporary pause program will include all employees of the Company, by which the company will ensure that jobs are maintained without layoffs. All workers who, due to extraordinary circumstances, will not be able to carry on business activities will be put on hold with at least 60% of regular pay secured, but not less than HRK 4,250 (net).
