Consignia: Dividend Payments Put on Hold?

October 6, 2001 — Christine Buckley, the Times of London: “Consignia wants to halt dividend payments to the Government, expected to total about Pounds 150 million, while it struggles with financial difficulties that this week led to the announcement of 15,000 job cuts. The renamed Post Office group has asked the Department of Trade and Industry and the Treasury to consider waiving dividend demands while it tries to cut costs by Pounds 1.2 billion. It would be the first time since the Post Office was separated from BT in 1981 that the organisation has not contributed to the Treasury. John Roberts, chief executive, said: ‘If we are in this position then it is a legitimate question for us to ask the Government whether we ought to have a discussion about dividend policy and whether for a period the dividend should be suspended.’ The dividend has not been set for this year but it is expected to be about Pounds 100 million.” The Times: “Although the Government set the dividend at 40 per cent of profits when it converted the organisation into a plc, the calculation is based on a selection of operating profits and does not account for exceptional losses.”