Cash flow woes hit dividends

July 27, 2011 | 17:00

(0) user say

Several listed companies are delaying the 2010 dividend payments due to money shortages.

Construction and Investment JSC No.492 (C92) announced it was postponing dividend payments more than one month to August 25 from July 15.

Cavico Industry and Mineral JSC (CMI), along with the two real estate companies Song Da No 1 JSC (SD1) and Song Da 7.04 JSC, also delayed payments, of which S74 even moved the deadline to the end of this year.

C92 contributed the delay to its clients who employed the company to execute their projects, but had not settled yet. According to the real estate company, those debts totaled to more than VND20 billion ($966,000). CMI also stated similar reasons.

Meanwhile, SD1 and some other companies admitted cash was the question. S74 said it had to focus the cash flows in producing in an effort to complete the 2011’s business plan.

High lending rates made it hard for firms to source funds for company’s operations and made firms nervous about paying dividends when profit targets were distant.

For example, a chairman of a confectionary company which completed up to 70 per cent annual profit plan said he was still considering when to pay investors.

By Dieu Minh

vir.com.vn

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional