Metcash cancels the dividend

We've been warning about Metcash’s dividend since 2012. After last year’s cut, today it was cancelled altogether.

Wholesaler Metcash is slowly – but belatedly – acknowledging that its debt levels are simply too high for the ‘increasingly competitive trading environment’. On 15 June the company will announce its results for the year to 30 April 2015, results that are likely to show net debt exceeding $900m.

The seasonal nature of its business means that net debt is usually significantly higher than it reports at year-end – and it’s too much for a company with a market capitalisation of barely $1bn.

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