27th Mar 2020 08:20
(Alliance News) - Aerospace and defence contractor Meggitt PLC on Friday said it will not be paying a final dividend for 2019 as part of cost-reduction measures taken in response to Covid-19 pandemic.
The FTSE 100-listed engineering company said it has conducted a further analysis of the adverse impact of Covid-19 on the civil aerospace sector and our business, which incorporates the latest industry projections on the reduction in air traffic in 2020, and the associated decrease in demand for both original equipment and aftermarket services.
As a result, Meggitt said it has decided that it is prudent to withdraw the recommendation to pay the final dividend of 11.95 pence per share.
"This action, together with a series of significant measures to reduce costs and tightly manage cash flow, will further strengthen our financial position and liquidity," the company explained in its statement Friday.
Meggitt will issue a first quarter trading update on April 23.
The stock was trading 3.8% lower in London on Friday at 324.70p a share.
By Evelina Grecenko; [email protected]
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