5th Jun 2020 08:39
(Alliance News) - Renishaw PLC on Friday said it has decided against paying a final dividend for financial 2020 in a further effort to conserve cash.
The FTSE 250-listed engineering firm said that while no final dividend will be paid for its financial year to the end of June, it will review its position for financial 2021 with the intention of reinstating the dividend as soon as appropriate.
Renishaw added that current trading remains in line with previous expectations, which anticipated continued tough conditions.
Back in May, the company already had cancelled its 14.0 pence interim dividend. At the time, it forecast a dive in annual adjusted pretax profit to between GBP45 million to GBP55 million compared with GBP103.9 million reported for financial 2019.
For the first three quarters of its financial year, Renishaw reported revenue of GBP389.9 million, down 10% year-on-year from GBP431.1 million. Pretax profit was down 77% to GBP19.7 million from GBP84.8 million.The performance was attributed to a challenging global macroeconomic environment due to trade tensions between the US and China, and weaker demand in the machine tool sector.
The stock was trading 1.1% lower at 4,058.00 pence each early Friday in London.
By Ife Taiwo; [email protected]
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