The Board of Directors approved a new Dividend Policy of an amount of approximately 50% of the Company’s Net Profit, provided that:
1. the dividend policy will not compromise the policy for growth of the Company whether it be, through acquisition of other companies, or by reason of development of new business; and
2. the Board of Directors considers that the payment of such dividend would be in the interests of the Company and in compliance with the laws to which the Company is subject.
The chart below shows the dividend distributions approved by the Company’s Board of Directors in recent years (in US$ million):
In light of the rapid spread of COVID-19 throughout the world and its impact on people’s health, way of life and global logistics, our Board of Directors has, after careful consideration, recommended a dividend of US$0.21 per issued share, totalling approximately US$15.0 million considering 71,561,060 shares outstanding on 25 March 2020, in reference to our 2019 results (2018: US$0.54 per issued share, totalling US$38.47 million). The remainder of US$0.33 per issued share (to a total of US$0.54 per issued share, previously proposed by the Board on 12 March 2020 and withdrawn at the meeting of the Board held on 24 March 2020) will remain in accumulated profit reserves to be paid as a dividend only, if and when, the Board considers it prudent and in the interests of the Company.
By deferring the decision on the remaining amount allocated in the accumulated profit reserves, Wilson Sons seeks to better understand the global effects of the coronavirus outbreak and any subsequent impact on our clients volumes before completing the distribution in reference to our 2019 results. In doing so we strive to strengthen our short-term financial liquidity during the peak of the pandemic, mitigate risks and maximise our contributions to Brazilian and worldwide supply chains in this challenging period for all humanity.