GQ Ball Pen declares dividend despite losses

GQ Ball Pen Industries Ltd, widely known as Econo Ball Pen, has declared a 5% cash dividend only for general shareholders for the 2019-20 fiscal year although the company suffered losses in that year.

Last year, the company incurred a loss of Tk7 crore and its loss per share was Tk7.64, according to its price-sensitive information that was revealed on the Dhaka Stock Exchange (DSE) website.

An official of GQ Ball Pen said all educational institutions are closed from March this year due to the novel coronavirus pandemic.

"Besides, we could not run our factory for two months due to the countrywide general holidays. Considering those matters, our revenue was almost nil in the last quarter of the last fiscal year and we incurred such losses," he added.

He said that their business will not be good until educational institutions are reopened.

Despite declaring the dividend, its share price fell by 5.92% at the DSE on Thursday. At the end of the day, the closing price of each share of the company was Tk219.20.

According to a company insider, they are witnessing poor business results as demand for ball pens has decreased over the last several years.

But the company paid dividends to its shareholders every year.

An insider of the company said GQ Ball Pen has a plan to reinvent itself through a market comeback with plastic and commercial building rental businesses.

Besides, the construction of a 14-storey commercial building in Dhaka's Uttara area is going on. The company expects a handsome income by renting it on commercial purposes, he added.

GQ Ball Pen began its journey in 1981 aimed at meeting local demands. The company got listed on the DSE in 1986 and its paid-up capital is Tk8.92 crore.

Sponsors and directors hold 40.88%, institutional investors 1.47%, foreign investors 0.05% and general investors 56.60% shares of the company.