16th Apr 2020 11:08
(Alliance News) - Software firm Kainos Group PLC on Thursday said its full-year performance was in line with market forecasts, but added that it will not pay a final dividend.
For the year ended March 31, Kainos reported "positive" trading with "excellent" sales performance.
Focus for the moment is on the Covid-19 pandemic.
"In the current environment, digital access to essential services has become extremely important. We have therefore taken steps to offer, pro bono, the expertise of some of our most experienced colleagues to help key government departments, care providers and organisations provide digital services to those that need them most," Kainos said.
"We anticipate that our customers in government and healthcare will likely be more robust than those in other sectors during this crisis. Nevertheless, we feel it is important to be prudent and manage the cost base, without limiting our longer-term growth prospects."
Kainos said it has furloughed staff, halted recruitment and reduced non-essential capital expenditure. This includes deferring spending on its proposed new office in Belfast.
Kainos added: "Given the backdrop, several measures have been taken in relation to remuneration to ensure further cost containment. Across the group, pay increases have been deferred until 2021 and bonus schemes have been curtailed."
Its chief executive officer, chief financial officer and senior vice president for business development have decided to take no salary for six months from April 1.
"Notwithstanding the security of this strong cash balance and the cost reduction measures already implemented, in order to preserve the group's liquidity during this period, the board considers it prudent to maintain flexibility on dividends at this stage. Accordingly, the board has decided it shall not declare a final dividend for financial 2020 but will take the opportunity to review this decision later in the year as the impact of Covid-19 becomes clearer."
Kainos shares were 4.3% lower at 642.00 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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