Further my earlier post, today Esterad announced on the BSE that it has withdrawn its Convertible Bond Offer due to "prevailing market conditions" and that BBK (the Collecting Bank) will return funds to those who did subscribe for the Offer.
As well, Esterad also announced that its ordinary general meeting of shareholders would be held on 30 March. More importantly it disclosed that its Board had recommended against any cash distribution (dividends) for the fiscal year 2009.
That latter point is signficant, though not surprising.
The company didn't pay dividends in 2008, a year in which it had a net loss of roughly BD 11 million (income statement) and a BD 14 million comprehensive loss. For 2009, it had net loss of BD 3.8 million (income statement) and BD1 million in comprehensive loss. The difference between net income or loss and comprehensive income is that comprehensive income (or in this case loss) includes changes in equity, such as fair value changes, that do not pass through the income statement.
It should be noted that from at least 1975 through 2007, Esterad paid cash dividends each year with the latter years at a generous 45% distribution rate.
The company didn't pay dividends in 2008, a year in which it had a net loss of roughly BD 11 million (income statement) and a BD 14 million comprehensive loss. For 2009, it had net loss of BD 3.8 million (income statement) and BD1 million in comprehensive loss. The difference between net income or loss and comprehensive income is that comprehensive income (or in this case loss) includes changes in equity, such as fair value changes, that do not pass through the income statement.
It should be noted that from at least 1975 through 2007, Esterad paid cash dividends each year with the latter years at a generous 45% distribution rate.
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