Shareholder: Guardian Holdings dividend non-payment 'unfair'

One disgruntled shareholder has described the move by Guardian Holdings Ltd (GHL) not to pay dividends for 2020 as unfair.

Gordon Laughlin told Newsday that the company’s decision has affected his day-to-day activities and was selfish after it recorded a sizeable profit for 2020.

“They made a profit and they not paying a dividend to shareholders. This is unthinkable and unfair.

"I look forward to my dividends. The fourth quarter payout is usually 60 cents per share. They didn’t pay us a dividend for the second quarter, which is 20 cents, so (for) all of 2020 they owe us 80 cents. This amounts to $180 million to the shareholders.

“This is absolute madness. The company is overflowing with cash. GHL can afford to pay a dividend of 80 cents for 2020. I fear what will happen for next year.”

GHL announced last week that shareholders will not receive their final payout of dividends for 2020.

It said in a press release, “Guardian Holdings Ltd (GHL) hereby advises that the GHL board met on March 4 and the directors made a decision not to pay a final dividend for 2020 to conserve the cash resources of the group, given the curtailment of dividend flow from major operating entities."

GHL chairman Patrick Hylton, in the publication of its summary consolidated financial statements for the year ending December 31, noted that while the company experienced profits for 2019, the effects of the pandemic have pushed it to hold back on distributing dividends.

Laughlin said the reason put forward for the non-payment was unjustified and called on other shareholders to speak up.

“If we allow GHL to get away with it, other financial institutions like banks will start to do the same thing. We have to object and we have to object strongly.

“Covid19 is not a reason to not pay the dividend. They had the best year in the history of GHL and they decide not to pay a dividend. Something is terribly wrong with that.”

GHL’s CEO Ravi Tewari told Newsday that the concerns of the stakeholders will be addressed in full at its annual general meeting carded for May 6.