I don’t quite agree. A cash balance like that only means a couple of things:
- An acquisition or some other growth project requiring investment in the pipeline (a bit difficult for Evolution since they can’t really make one-off investments without making an acquisition).
- They see some absolutely massive black swan in the relatively near future.
We have now gone a year without paying a dividend; if a major strategic change is being made and dividends aren’t paid because of it, then it’s perfectly fine with me to freeze dividends for a year or two. This investor impatience that flashy magic tricks must happen in a single year is, in my opinion, poison for companies in the long run.