First Mutual declares a ZWL7.4m quarterly dividend despite slump in profits

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  • Dividend declared from Q3 2020 profits
  • This is despite profit falling over 80% in the quarter
  • The company blamed the volatile macroeconomic conditions for this slump

Real estate, property development and management company, First Mutual Properties Limited has declared an interim quarterly dividend from the profits of the quarter ended 30 September 2020.

In a notice sent out to shareholders on the 18th of January 2021, company Secretary Sheila Lorimer said, “At a meeting held on 17 November 2020, your Board resolved that an interim quarterly dividend of ZWL 7,398,431 being 0.5982 ZWL cents per share be declared from the profits for the quarter ended 30 September 2020”.

“The dividend will be payable on or about 05 February 2021 to all shareholders of the Group registered at close of business on 29 January 2021. The shares of the Group will be traded cum-dividend on the Zimbabwe Stock Exchange up to 26 January 2021 and ex-dividend as from 27 January 2021,” she added.

This dividend comes after a relatively slow quarter in which the group’s profits declined by 86.4% and revenue reduced by 11.3% in comparison with the same quarter in 2019.

In monetary terms, profit for the period to 30 September 2020 in inflation adjusted terms was ZWL105.4 million compared to ZWL775.1 million recorded in the comparative period in 2019 while revenue was ZWL91.5 million against ZWL103 million in the prior year.

The company blamed the volatile macroeconomic conditions for this slump in both profits and revenue.

“The property market fundamentals remained depressed due to the difficult macro-economic climate and low business confidence, the market remains susceptible to low demand for rental space, increasing vacancy levels and increasing defaults,” the company said.

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