Group not declaring dividends

THE City Pharmacy group is not declaring any dividends for its shareholders for the 2019 financial year, according to chairman Stanley Joyce.
Joyce revealed this when releasing the group’s financial result for last year, which recorded a profit before tax of K5.6 million.
“At our March board meeting, the directors gave consideration to the payment of a dividend,” he said.
“We noted that at this particular time, the company was not in a position to declare a dividend as the cash is required for capital investments.
“We remain committed to addressing this issue as soon as is practically possible.”
Joyce said allowing for ongoing issues in the PNG economy and the un-level playing field on which the rental business operated, the directors considered the result acceptable.
“Furthermore, we maintain every confidence that the strategy behind key business drivers is sound and combined with management controls over cost the business will general sustainable profits into the future,” he said.
“The directors have taken steps to support the cost control initiatives by reducing directors’ fees and group managing director’s remuneration ranging from 20 per cent to 30 per cent.”
Joyce said 2019 was the second year of the recovery plan from the disastrous fire of 2017.
“All major milestones of that plan have been met and, in some cases, exceed,” he said.
“We are now entering a new phase where most of the significant legacy issues of that period have been dealt with.
“The pharmacy business proved yet again to be a steady performer with excellent growth opportunities.
“Our health outreach programmes continue and we are again considering a number of new locations to expand our footprint.”