Golden Son’s earnings remain negative, declares 2.5% dividend

Decline in turnover and a rise in expenses have pushed the Golden Son’s earnings down. As a result, the company has announced only 2.5 percent dividend and that is excluding sponsors and directors.

The Golden Son Ltd did not offer any dividend in the last year. According to the Dhaka Stock Exchange (DSE), the last time the company offered a dividend was in fiscal year (FY) 2015-16 – it offered a 5 percent dividend then.

The company’s consolidated earnings per share (EPS) stood at Tk1.05 in the negative for FY 2019-20 – a 6 percent decrease against Tk0.99 in the immediate past fiscal.

Meanwhile, the market price of the Golden Son’s shares went up to 10 percent today despite the company offering a low dividend.

As of the filing of this report, the latest trade price (LTP) of the company’s share was Tk10.9, which is a 9 percent increase from yesterday’s closing price.

In its statement on the Dhaka Stock Exchange (DSE) on Wednesday, the company said that the sponsors/directors hold 6.69 crore shares out of total 1717.29 crore shares and the cash dividend to be payable to the general shareholders is Tk261.99 crore.

In the statement, the company has also reported consolidated net asset value (NAV) per share of Tk20.03 and consolidated net operating cash flow per share (NOCFPS) of Tk0.10 for FY 2019-20 as against Tk21.08 and Tk1.02 respectively a year ago.

The Golden Son informed that the consolidated EPS decreased significantly due to the significant decrease in turnover and increase of financial expenses in comparison to the previous year as an effect of Covid-19 pandemic.

It also said that the consolidated NOCFPS decreased significantly because of the significant decrease in cash receipts from customers in comparison to the previous year due to the Covid-19 pandemic.

Following the corporate declaration, there will be no price limit on the trading of the shares of the company. However, the floor price set by the Bangladesh Securities Exchange Commission (BSEC) will be applicable accordingly.

The annual general meeting (AGM) of the company is scheduled to take place on December 15.