Shareholders of Danubius Hotels Rt decided at an AGM on Monday to pay no dividend on 2005 because of losses of Ft 972 million the company racked up during the year, the company said in a stock exchange statement.
The losses, calculated according to Hungarian Accounting Standards, were mainly due to the weaker forint. Shareholders, representing 63.97% of voting rights, also approved the unconsolidated balance sheet showing total assets of Ft 56.52 billion. Consolidated total assets were Ft 79.16 billion and consolidated after-tax profit was Ft 881 million. Danubius has units in the Czech Republic, the United Kingdom, Slovakia and Romania.
CEO Imre Deák said the board made the proposal to pay no dividend because the group intends to use its financial assets to fund capital investments to increase shareholder value. Danubius last paid a dividend on 2001's after-tax profits.
Deák said Danubius targets consolidated revenue of Ft 44.1 billion in 2006, 3.1% more than in 2005. The company plans pre-tax profits of Ft 2.65 billion, excluding the effect of exchange rate changes.