"For dividend to reduce there would have to be a reduced NPAT, or a change in dividend policy".
Given the level of debt the business is carrying, as a capital conservation measure, they could pay out 65% of NPAT as a dividend, which would still be in keeping with the current dividend policy, but it would still involve a reduction in the dividend.
Besides, no dividend policy is not set in stone; rather, it is subject to continual board reveiw.
They know that the laundry business, which ended up not being sold, will need to have capital spent on it on an ongoing basis (which is why they sought to sell it, in the first place), so who is to say they won't provide for this by retaining more profit going forward? It would be the prudent thing to do.
SPO Price at posting:
98.0¢ Sentiment: None Disclosure: Not Held
