Campervan and tourism operator Tourism Holdings has cancelled its interim dividend, cutting back on staff and executive pay.
(File image). Photo: 123rf.com
The company said it would not pay the 10 cents per share dividend announced on 28 February 2020, as a result of the Covid-19 pandemic and associated travel containment measures.
Chairman Rob Campbell said the cancellation was in the best interest of the company, which was facing an unprecedented level of uncertainty across its businesses.
It was also cutting directors' fees and the chief executive's salary by 50 percent over the next four months, while other senior managers would take a 30 percent pay cut over that period.
"It is one of a number of appropriate measures underway," Campbell said, adding the company was undertaking significant cost reductions, including a cut back in jobs and other employment costs.
In addition, it would cancel all uncommitted investment in its fleet, and working with suppliers to cut back on committed fleet expenses, where possible.
The company said it had about $109 million available in its banking facilities, with net tangible assets of $1.83 per share as of 31 December.
The share price closed down yesterday more than 30 percent to 91 cents a share, compared with $3.47 at the beginning of the year.