Esquire Knit Composite PLC swung to a loss in the financial year ended June 2026, while its board recommended a sharply reduced cash dividend of 2 per cent only for general shareholders.
The knitwear manufacturer reported a consolidated loss per share of Tk2.68 for 2025–26, compared with earnings per share (EPS) of Tk0.44 a year earlier, according to financial results approved by its board on Wednesday.
The deterioration extended to operating cash flow, which turned negative during the year.
Consolidated net operating cash flow per share fell to negative Tk8.81 from positive Tk1.72 in the previous financial year, indicating that the company’s operating activities consumed cash rather than generated it.
Despite the losses, the board recommended a final cash dividend of 2 per cent, equivalent to Tk0.20 per share, down from 10 per cent for the previous financial year.
The proposed dividend will be paid exclusively to general shareholders, with sponsors and directors voluntarily waiving their entitlements on 6,33,55,970 shares.
The remaining 7,15,39,863 shares will be eligible for the payout, requiring Tk1.43 crore, which the company plans to finance entirely from accumulated retained earnings.
The dividend remains subject to shareholder approval at the annual general meeting.
On a standalone basis, Esquire Knit reported a loss per share of Tk2.67, reversing earnings of Tk0.57 a year earlier.
Standalone operating cash flow per share also fell to negative Tk6.05 from positive Tk2.41.
The losses were accompanied by a decline in the company’s net asset value.
Consolidated net asset value per share, including revaluation reserves, fell to Tk61.91 at the end of June from Tk65.10 a year earlier.
Excluding revaluation reserves, the figure declined to Tk34.19 from Tk37.38.
On a standalone basis, net asset value per share fell to Tk63.06 from Tk66.23, including revaluation reserves, and to Tk35.34 from Tk38.51 without them.
The company’s 26th annual general meeting is scheduled for 25 January 2027 at 11am through a virtual platform. The record date has been set for 2 December 2026.
The board approved the audited financial statements at its 158th meeting on 28 October.
