30th Mar 2020 16:59
(Alliance News) - Melrose Industries PLC said Monday it has suspended the payment of its final dividend for 2019 of 3.4 pence per share due to the Covid-19 pandemic.
Shares in Melrose closed 18% lower at 87.50 pence on Monday in London.
The FTSE 100-listed turnaround specialist said from January to mid-March, it traded in line with management expectations. However, in the second half of March, Melrose noted a significant deterioration in trading and the end markets it serves.
As a result of the uncertainty surrounding the virus outbreak, the group said it cannot currently provide a meaningful outlook, but is closely monitoring all developments.
Operationally, the Automotive and Powder Metallurgy business have factories largely closed outside of Japan and China. Meanwhile, Aerospace factories have remained open, but are running with reduced requirements.
In terms of employees, senior salaried staff in many of Melrose's businesses will take a 20% pay cut temporarily in order to support the business.
"While the current circumstances are unparalleled, Melrose has a track record of managing our businesses successfully in tough times and we thank all our employees for their extraordinary efforts to ensure this happens again. We have taken very significant action to mitigate the effect of this unprecedented crisis. With the help of our employees, we will do whatever is needed to protect the group and to ensure that it is in the best position to move forward when this crisis recedes," said Chief Executive Officer Simon Peckham.
By Dayo Laniyan; [email protected]
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