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Covid-19 (coronavirus) response statement, operational update, postponement of dividend and trading statement
Metair Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1948/031013/06)
ISIN: ZAE000090692
Share code: MTA
(“Metair” or the “Company”)
COVID-19 (CORONAVIRUS) RESPONSE STATEMENT, OPERATIONAL UPDATE,
POSTPONEMENT OF DIVIDEND AND TRADING STATEMENT
Background
In light of the likely impact of the worldwide Covid-19 pandemic and the resultant declarations of
state of emergencies, disasters and lockdowns in various countries on the financial performance
of our Company and employee health and welfare, the Metair board of directors (“Board”) would
like to communicate its situational response to the market.
Operational update
Although the Company is designed to rapidly adapt to changes in the market, in the current
trading environment where most of our operations are closed due to declared lockdowns and/or
customer demand declines, this is certainly an abnormal time that requires an abnormal response
to ensure our long-term sustainability, as well as special employee support measures which align
with our values.
Metair is appreciative of all the stakeholders’ actions, support and sacrifices, ranging from
government, shareholders, employees, business partners, customers, providers of capital and
suppliers during this period.
The list below indicates the current state of operation in our different geographical locations:
Country Business Operational status
United Kingdom Dynamic Operating remotely – Essential service supplies
only
Germany Möll Closed
Kenya ABM Operational – strict social distancing
Romania Rombat Closed
Turkey Mutlu Akü Operational at 50% capacity – strict social
distancing
South Africa All businesses Closed
Employee support measures
The welfare, health and safety of our employees is both a priority and a concern. Thanks to salary
sacrifices by employees, as well as unprecedented government support in all countries of
Metair’s operations, we have been able to formulate employee welfare measures for the current
phase of closures and lockdowns affecting our operations over the next 3 weeks. The extent and
duration of the measures will be reviewed on a continuous basis.
Liquidity review
Management has conducted a detailed business review for various trading scenarios for the
remainder of the year and analysed the different financial and cash flow positions. All capital
allocation decisions and priorities have been reviewed to delay capital outflows in order to
preserve cash while maintaining operational readiness and employee support and wellness.
The Company has sufficient liquidity and facilities to operate and has confirmed all existing
banking facilities. To ensure its sustainability it is continuously evaluating all available support and
contingency measures.
Dividend review
In response to these abnormal circumstances, shareholders are referred to the dividend
declaration published on SENS on 18 March 2020 in terms of which shareholders were advised
that the Board had declared a cash dividend of 120 cents per share for the year ended
31 December 2019.
Given the uncertainty as to the duration and the extent of the impact that Covid-19 will have, the
Board considers it prudent and in the best interests of the Company and all its stakeholders to
preserve the Company's liquidity.
Whilst Metair continues to maintain its ability to meet its current solvency and liquidity obligations,
the Board has resolved to postpone the payment of the dividend as a precautionary measure to
provide our underlying investee companies with additional financial flexibility and bolster their
liquidity in these abnormal times.
Information on the revised dividend dates will be communicated to shareholders on or about 19
August 2020, when Metair publishes its interim results for the six months ending 30 June 2020.
Trading statement
In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, companies are required to
publish a trading statement as soon as they are satisfied that a reasonable degree of certainty
exists that the financial results for the period to be reported upon next, will differ by at least 20%
from the financial results for the previous corresponding period.
In light of the devastating economic impact, weakened trading conditions and extraordinary cost
related to Covid-19, it is expected that for the six months ending 30 June 2020, the Company's
earnings per share (“EPS”) and headline earnings per share (“HEPS”) will reduce by at least 20%
compared to the previous corresponding period. A further trading statement will be issued as
soon as there is a reasonable degree of certainty as to the likely ranges within which the
Company's EPS and HEPS figures are expected to decrease by.
The financial information, on which this trading statement is based, has not been reviewed or
reported on by Metair’s external auditors.
Appreciation
The Board would like to express its appreciation to all the governments in the geographical areas
in which we operate who acted swiftly to contain the Covid-19 virus and implemented support
measures for affected companies and employees. A special appreciation goes out to the South
African President Cyril Ramaphosa and his cabinet, who acted swiftly in a cooperative manner to
protect South Africa against the further spread of Covid-19.
The support measures implemented by President Cyril Ramaphosa significantly contribute to the
welfare of our employees during the lockdown period.
The Board also wishes to express its appreciation to our management team and employees for
their understanding, sacrifice and support during this critical time.
Johannesburg
30 March 2020
Sponsor
One Capital
Date: 30-03-2020 07:05:00
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