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Forth cuts dividend after property falls
2009/3/18
Forth Ports has cut its dividend to save US$16.8 million after writedowns on its property estate sent the Scottish and London ports operator tumbling to a pounds $43.1 million full-year loss, the Daily Telegraph reported.
The operator of seven UK ports, including Grangemouth, Leith and Tilbury, said that in light of the economic downturn and bombed-out property markets, it had taken the "prudent" decision to improve dividend cover.
The dividend cut came despite comments from chief executive Charles Hammond that "the underlying trading performance in ports was our strongest ever" in 2008.
It was outweighed, however, by $94.1 million of writedowns and exceptional charges, mainly relating to Forth''s property estate, which independent valuer DTZ marked sharply lower to reflect market conditions.
DTZ cut the carrying value of development assets, including swathes of waterfront land in Edinburgh, from $396.1 million to $84.3 million, recognising 80 percent of the land bank had no immediate development value.
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2009/3/19