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- In a worrying letter to shareholders, Transmetro (TCO) announced it is suspending its dividend and says the company’s future outlook remains uncertain
- Transmetro operates a number of pubs and hotels across the country, including the Metro Hotels chain
- Due to state-wide movement restrictions, the company has been forced to close three hotels and a number of pubs in Sydney and Adelaide
- Transmetro has stood down 105 staff so far
- There’s been no change in the company’s share price since March 11, which remains in the grey at $1.21 per share
In a worrying letter to shareholders, Transmetro (TCO) announced it is suspending its dividend and says the company’s future remains uncertain.
The company operates a number of pubs and hotels, including the Metro Hotels chain, which has locations across the country.
Due to new COVID-19 restrictions in Sydney and Adelaide, the company has been forced to close its pubs in both cities.
Furthermore, travel restrictions have severely impacted the company’s hotels. Consequently, Transmetro has closed three hotels to date and are reviewing further closures.
As a result of all these closures, the company has stood down 105 employees so far.
With regards to its operating Hotels, Transmetro says it is closely monitoring any government subsidies or relief. This suggests that, barring government intervention, the company may have to close further hotels.
Government-mandated shutdowns came into effect last week as confirmed cases of COVID-19 continue to rise in New South Wales.
The latest measures enforce that all residents must stay at home and self-isolate. Residents can only leave the house for essential purposes and all non-essential business have ceased operating.
In reaction to this, Transmetro has cancelled its dividends for the financial year.
In an ominous closing statement, the board of directors stated that, due to the ongoing COVID-19 pandemic, the company’s future outlook remains uncertain.
The duration of the state-wide shutdown also remains unclear, but it has been suggested that it could extend as long as six months if case numbers continue to rise.
There’s been no change in the Transmetro’s share price since March 11, which remains in the grey at $1.21 per share at 10:32 am AEST.
