Al-Haj Textile decides not to pay dividend for FY23

Al-Haj Textile Mills Limited has decided not to pay any dividend to its shareholders for the fiscal year of 2022-23 due to incurring losses during the year.

The company made the announcement on the Dhaka Stock Exchange (DSE) today (18 December).

The company had paid a 3% cash dividend in FY22, while the payout was 1% in FY21.

Due to incurring losses, it did not pay any dividend in fiscal year 2020.

Following the dividend declaration, its share price jumped 4.26% to reach at Tk122.30 on the DSE.

During FY23, the company incurred a loss of Tk1.70 crore, while it posted net profit of Tk2 crore in the previous year.

At the end of FY2023, its loss per share stood at Tk0.78.

To secure the shareholders' approval for the dividend and the audited financial statement, Al-Haj Textile will conduct the annual general meeting on 30 January next year, while the record date is set for 8 January to entitle the shareholders who can attend the meeting.

Al-Haj Textile failed to declare dividend and its financial in the stipulated time due to a conflict between the company's directors and sponsors to grab the board's majority. Later, they went to the court to resolve their dispute, a company insider said seeking anonymity.

Later, they resolved the dispute through discussing with others following the alternative dispute resolution, he added.

In November, the company announced through the stock exchange that the internal disputes among the sponsor family directors of Al-Haj Textile have been resolved, with all parties reaching an agreement.

The company also restructured its board, including a shareholder who owns more than 5% of the company's shares as a director, while the regulator-appointed independent directors were withdrawn.

Its newly appointed board consists of Md Bakhtiar Rahman as chairman (acting), Md Mizanur Rahman as managing director and CEO (acting), and directors Md Harunoor Rashid, Md Abdullah Bokhari, Md Talha, Md Saidul Islam, and Khodeza Khatoon as Md Joynul Abedin Chowdhury.

Amid internal conflict among the directors of the company in June 2023, the Bangladesh Securities and Exchange Commission (BSEC) recast Al-Haj Textile's board, appointing independent directors.

The disputes among the directors have continued for over a year. Now, the owners themselves have resolved the issue.

In February this year, in a letter to the Bangladesh Securities Exchange Commission (BSEC) signed by Md Bakhtiar Rahman and Muhammad Mizanur Rahman, Al-Haj Textile said the disputes regarding the directors have been resolved.

In a letter to the company sent on 17 November, the BSEC withdrew independent directors from the board of Al-Haj Textile.

The letter read that considering the overall situation, the sponsor-directors of Al-Haj Textile Mills jointly hold 30% of the shares of the company. The shares of the company are trading in the B category. So, the order of the Commission appointing independent directors was withdrawn.