Tourism Holdings has cancelled its 10 cents a share interim dividend due to rising uncertainty about the coronavirus pandemic.
Chairman, Rob Campbell, said the board considered that the cancellation of the FY20 interim dividend was in the best interests of thl, as we face an unprecedented level of uncertainty across its businesses globally.
Other measures implemented by thl to reduce expenditure and mitigate impact include:
• all directors reducing their director fees' by 50% for the next four months;
&bull chief executive Grant Webster reducing his salary by 50 per cent for the next four months;
• the executive team reducing their salaries by 30 per cent for the next four months;
•the cancellation of all uncommitted fleet capital expenditure, reduction in committed fleet expenditure where possible with suppliers, and a significant cost-out exercise being undertaken for all other uncommitted expenditure;
•role reduction and other employment cost reductions will occur and are in the process of being enacted.
• generation of self-isolation and medical-related revenue across New Zealand, Australia and the United States.
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The company said it had $109m of headroom currently available in its banking facilities, and had net tangible assets of $1.83 per share as at December 31 last year.
Shares have tumbled from $3.45 to 91c since the beginning of the year.