Energy storage and automotive component group Metair has cancelled the payment of a 120 cents per share dividend to preserve liquidity.
The group's board, in an update to shareholders on Thursday, said the payment of a dividend would "imperil the solvency and liquidity of the company, given the uncertainty that still exists in respect of the economic outlook for the South African and globally economies, especially in light of the likelihood of a potential second wave in Covid-19 infection".
The group in March announced a dividend of 120 cents per share, but deferred payment to preserve liquidity. This dividend has now been scrapped. This is despite the group's financial position remaining "relatively strong throughout the Covid-19 pandemic".
The owner of First National Battery said it would again consider paying a dividend if conditions improve.
The group also announced changes to its board on Thursday. Brand Pretorius, appointed as chairman in 2015, will be replaced by Michael Flemming, currently an independent non-executive director at the company.
The succession will take place following the conclusion of the 2021 AGM, subject to shareholder confirmation.