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(Alliance News) - Animalcare Group PLC on Wednesday said it will be deferring its final dividend to help preserve cash during the Covid-19 crisis.
The animal health business had planned to release 2019 financial results on Tuesday next week, but will now not be doing so amid the moratorium requested by the UK Financial Conduct Authority.
The dividend suspension will save Animalcare around GBP1.4 million. It will review the dividend situation later in 2020, and may decide to declare a second interim dividend.
Animalcare is taking other measures to save cash, such as deferring non-essential capital expenditure.
Animalcare entered 2020 in a "strong" financial position, it said, and stressed it has so far been trading in line with market expectations. However, some customers and supply partners have indicated disruption will be avoidable. For example, many vets in core markets are now only handling emergency cases.
"Maintaining our financial strength is key, both in terms of the group's resilience and, importantly, its ability to focus on the execution of its growth strategy. Notwithstanding the acute challenges posed by Covid-19, the board believes the group will continue to be well placed to take advantage of opportunities in a market with attractive fundamentals," said Animalcare.
Shares were 1.0% higher on Wednesday afternoon in London at a price of 154.00 pence each.
By George Collard; georgecollard@alliancenews.com
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