SMDS ( dividend cancelled)

[monabri]

https://www.londonstockexchange.com/exc ... 95785.html

"Against this backdrop and after due consideration, the Board has decided it is prudent to no longer pay the interim dividend due for payment on 1 May 2020, which would otherwise become ex-dividend on 9 April. The Board recognises the high degree of importance of dividends to shareholders and, as such, it will consider the appropriateness, quantum and timing of overall dividend payment relating to the financial year ending 30 April 2020 at the time of announcement of the results in July when it expects to have a clearer view of the effects of COVID-19 on the Company's business, together with additional measures focused on cost mitigation and cash generation."

[Wizard]

I actually thought the most interesting part of the RNS was a bit further up as it said...

...In virtually all markets in which we operate, governments have classified us as a critical business involved in the supply of packaging to sectors such food and essential products. All our factories are, and have been operational throughout, albeit with further enhanced safety and hygiene standards.

In terms of demand, corrugated box volumes have continued to be good and we have seen improvement on the first half on a like for like basis, with our focus on the FMCG customer base, in particular, benefitting us during these uncertain times....

...Supplies into the grocery sector have been very busy particularly in ambient food, drinks, hygiene, frozen food and dry packaged grocery categories. E-commerce has also been strong in most categories but increasingly in everyday essential products...

The industrial sector has however been heavily affected but our more limited exposure has protected us.

...although there have been some additional operating costs as a result of COVID-19, particularly in relation to employees, logistics and enhanced health and safety measures as we continue to manage our operations within this challenging environment. However, pricing remains resilient and we therefore expect a return on sales for the current financial year to be similar to the first half.

So they are not really being hit at all by COvid-19, the dividend action is ahead of what they see coming.

[88V8]

It all seems very sensible, and as with some other Cos, a hint that they may make good the missing payments if conditions allow.

Irritating, I just bought into Smith a couple of weeks ago but heyho.

V8