21st Jul 2020 11:33
(Alliance News) - Centaur Media PLC on Tuesday reported a wider loss in the first half of 2020, declining to pay an interim dividend with the future looking uncertain.
The London-based business information, events and marketing provider's revenue was down 27% to GBP17.7 million in the six months to June 30 from GBP24.1 million a year prior, with an underlying revenue decline of 18%.
Pretax loss widened to GBP14.6 million from GBP4.7 million year a year before. Adjusted earnings before interest, tax, depreciation and amortisation decreased to GBP1.0 million from GBP1.2 million.
Centaur Media renegotiated its bank facility to provide up to GBP10 million of borrowing capacity with waived covenant tests to September 30 next year.
Centaur Media said it is still financially strong with GBP8.4 million in cash at June 30.
The company has little visibility beyond the third quarter, it said, and its full year performance will depend on the success of the Festival of Marketing and The Lawyer Awards.
It is withholding its interim dividend until the outlook becomes clearer. It paid out 1.5 pence at the interim stage in 2019, followed by a special payout of 2.0p later in the year.
Centaur Media said: "The board will keep the situation under review and will determine the timing for resumption of dividends once the market situation and the effect of Covid-19 on Centaur's business and its cashflow have become clearer."
In the short-term, face-to-face events remain uncertain due to restrictions on travel and meetings as well as the company's concern for its employees, it said.
As for Centaur Media's other business lines, customer purchases will probably be slow due to the virus as economic and business outlooks are remain uncertain.
Chief Executive Swag Mukerji said: "We had a good start to the year and were on track with our MAP22 plans. Following the onset of the pandemic, we took swift action to restructure the business, reduce our cost base and obtain bank covenant waivers so that we remain financially strong.
"In the context of market conditions and the ongoing uncertainty, we continue to be encouraged by the performance of a number of our key brands where we adapted our offering as we went into lockdown. The profit margin shortfall arising from the revenue reduction was substantially mitigated by the flow through of 2019 cost reductions as well as further cost savings we have implemented this year."
Centaur Media shares were up 2.8% at 24.68 pence on Monday morning in London.
By Greg Roxburgh; [email protected]
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