JSE-listed fishing group Premier Fishing and Brands will not pay out dividends after it experienced a tough year that saw its revenue plunge by R100-million.
In its financial results for the year to August on Thursday, the company said its overall revenue dropped by R100-million from R575-million to R475-million, noting that the decrease was mainly as a result of the squid division.
“The squid sector saw reduced catch rates, which was industrywide. However, whilst the export market for squid remains very strong, as the market saw high prices per kilogram, the group unfortunately could not capitalise on the price factor due to the low volumes caught,” it said.
The results show that gross profit margins from 2021 to 2022 remained relatively consistent. Profit before tax rose to R19-million from R18-million a year before, boosted by a grant received from the Department of Trade Industry and Competition.
The company further said the impact of Covid-19 is still being felt in most of the markets that the group operates in, despite the group being deemed an essential business service.
“There is no certainty as to how long it will take for our markets to return to normal levels. As a consequence of this uncertainty, and the challenging year it has been, the board of directors believes that preservation of cash is paramount to ensure the sustainability of the group in this current environment, and as such, made the decision not to declare a dividend for the year ending 31 August 2022.”
Last week, the company cautioned the market that its parent firm, African Equity Empowerment Investments (AEEI), was on the brink of making a firm offer to acquire the remaining shares it does not own in the fishing company.
AEEI currently holds 56% of the shares in the company.
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