Prime Finance declares no dividend for 2022 citing losses
Following the no dividend declaration, Prime Finance’s share price dropped by 4.17% to close at Tk4.60
Prime Finance and Investment has announced it will not pay any dividend to its shareholders for the year 2022, citing losses incurred during the period.
The non-bank financial institution (NBFI) made the decision at a board meeting held on 15 April, where it also approved its audited financial statements for the year. This was the company's first board meeting in four years, according to the Dhaka Stock Exchange (DSE).
The company has yet to declare its financial statements and dividend decisions for 2023 and 2024. It last paid a 2% cash dividend in 2019 and reported a profit in 2020.
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Following the no dividend declaration, Prime Finance's share price dropped by 4.17% to close at Tk4.60. The company is now in the Z category as a poor performer in the DSE.
It will hold its annual general meeting (AGM) on 27 May to seek shareholder approval of the 2022 financials. The record date for the AGM is set for 6 May.
According to the NBFI's price sensitive statement, it incurred a consolidated loss of Tk82 crore in 2022, which was 332% higher than the previous year.
During the year, its loss per share stood at Tk3.02, which was Tk0.69 in 2022.
At the end of 2022, its consolidated net asset value stood at Tk6.99 and the net operating cash flow per share was Tk0.34 negative.
Listed on the DSE in 2005, Prime Finance has a paid-up capital of Tk272.91 crore. As per its shareholding report for March, sponsors and directors held 59.14% of shares, institutional investors 7.47%, foreign investors 0.01%, and general investors 33.38%.
