6th Apr 2020 11:57
(Alliance News) - Spectris PLC on Monday said it has withdrawn its special dividend and postponed its final dividend among other cost-cutting measures being implemented amid uncertainty arising from the Covid-19 outbreak.
In February, the measuring devices manufacturer said it would pay a special dividend of 150 pence per share and a final dividend of 43.2 pence, up from the final dividend of 40.5p declared the year prior. The withdrawal and postponement of the payouts are expected to result in savings of around GBP225 million.
Spectris said trading in the first quarter of 2020 was hurt by the Covid-19 outbreak with like-for-like sales expected to be down by 10% compared to the year prior. Trading at start of the year was in line with expectations except in China where like-for-like sales dropped in February. While trading in China has now improved, sales in Europe and North America have declined on government restrictions and lockdowns.
The FTSE 250-listed company said all its manufacturing facilities remain open. However, while operation at its Chinese facilities have returned to normal, other factories are working below full capacity.
It added that in addition to the changes to its dividend, it has implemented a hiring freeze, stopped planned salary increases, and reduced discretionary spending and capital expenditure. Additionally, salaries and fees of its chief executive, chief financial officer, chair and non-executive directors have been reduced by 25%.
Spectris said it remains in a "robust" position with net cash of around GBP53 million, a cash balance of around GBP240 million and gross borrowings of GBP187 million recorded at the end of March.
The stock was trading 1.6% lower at 2,259.00p each on Monday morning in London.
By Ife Taiwo; [email protected]
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