Ann: Presentation of Half Year Results, page-68

Don't agree@Lev20

Board / management said they would consider dividends after they refinanced the debt. This was done in October 2021. It may be technically right that no commitment was made back in October or at the AGM, but an expectation was set.

Shareholders have suffered by the company taking on too much debt making unprofitable acquisitions in the past. It almost pushed the company into administration. Finally, now that assets have been sold and operations have returned to profitability, SWM has managed to get its debt levels down and - by its own admission - has achieved a gearing level below its target.

Instead of pleasantly surprising shareholders by announcing a dividend or share buyback, it left shareholders hanging. While shareholders don't receive dividends, management keeps getting their multi-million dollar salaries and incentives. Clearly they plan on making investments (hence the publishing of target gearing levels) and shareholders are rightly irritated that this is taking a priority over dividends. Based on what has happened in the past few years, its not surprising.

It would have made more sense to recommence dividends and then look to making modest investments. The SP action since half-year results confirms that a huge swathe of shareholders share this view ...