2nd Apr 2020 11:05
(Alliance News) - Recruiter Robert Walters PLC will not be paying a previously declared final dividend, it announced on Thursday.
The London-based firm declared a final dividend of 11.0 pence per share in early March when reporting 2019 financial results.
At the time, it warned the global recruitment market looked unpredictable in 2020 due to the spread of Covid-19, which is likely to hurt profit.
"The board believes this is a prudent move, given the current unprecedented period of global lockdown and uncertainty, which will serve to further strengthen the group's balance sheet and improve liquidity," said Robert Walters.
"The board will reassess the dividend once the economic impact of Covid-19 has become clearer."
As of February 29, Robert Walters had a net cash balance of GBP74 million, and it believes it is "well-placed" to cope with the outbreak.
"While the impact of Covid-19 continues to evolve, the group has taken a number of pre-emptive actions to manage costs and help mitigate the financial challenges imposed by the virus," Robert Walters continued.
"Since the escalation of the crisis in February, the group has reduced its cost base by more than 15% and is also in the process of applying for a number of government subsidies around the globe."
The company will release a first-quarter trading update on April 8. It is too early, it said, to currently give financial guidance for 2020.
Robert Walters shares were flat on Thursday in London at 310.00p each.
By George Collard; [email protected]
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