ACI recommends 90% dividend, despite declining earnings

The board of directors of ACI Limited has recommended an 80% percent cash and 10% stock dividend for 2019-20 fiscal year. 

The general meeting of the company is scheduled to take place on December 24. 

The company also reported consolidated earnings per share (EPS) of negative Tk 18.45, consolidated net asset value (NAV) per share of Tk 137.67 and net operating cash flow per share (NOCFPS) of Tk 82.79 for FY2019-20, against negative Tk 13.51, Tk 166.95 and negative Tk 25.67 respectively for the same period of the previous fiscal year. 

The company also placed a disclosure on Dhaka Stock Exchange’s website regarding the recommended dividend. According to that, the dividend has been recommended out of the company’s accumulated profit. 

It also says that the dividend “has not been recommended from capital reserve or revaluation reserve or any unrealized gain or out of profit earned prior to incorporation of the company or through reducing paid up capital or through doing anything so that the post-dividend retained earnings become negative or a debit balance.”

The disclosure further says that the bonus shares have been recommended for utilising the retained earnings of the company as capital for ongoing operations, i.e. working capital.

There will be no price limit on the trading of ACI Ltd's shares on Tuesday, following its corporate declaration. However, the floor price set by the Bangladesh Securities Exchange Commission (BSEC) will be applicable accordingly.