26th Mar 2020 09:26
(Alliance News) - Engineering firm Senior PLC said Thursday it is now clear the Covid-19 outbreak is causing disruption to its end markets and supply chain.
Senior has put in place "detailed and flexible" business continuity plans for each of its operating businesses.
Part of these plans involve cash-saving measures, including suspending its 5.23 pence 2019 final dividend.
"Until the extent and duration of the disruption is better understood, the board believes that taking actions to conserve cash is the most prudent way to manage through the crisis, including curtailing capital expenditure, tight management of our working capital and further cost-cutting actions," Senior said.
At the end of 2019, Senior's committed borrowing facilities were GBP305 million, with headroom of GBP159 million.
Senior added: "We continue with our restructuring plan, which is delivering the expected benefits. This is an on-going process and we are actively monitoring events and will take further action as appropriate."
Senior was in the process of restructuring its Aerospace unit due to the suspension of production of Boeing Co's 737 MAX.
The company's trading in the first two months of 2020 was in line with internal expectations. But due to the ongoing uncertainty caused by the coronavirus, Senior is suspending guidance for the rest of 2020.
Shares in Senior were 0.5% higher in London on Thursday morning at 75.45 pence each.
By Paul McGowan; [email protected]
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