(Alliance News) - Security services provider G4S PLC on Monday said that it will suspend its final dividend payout for 2019 as a "prudent" measure due to the uncertainty relating to Covid-19 and its impact on economic activity in key business markets.
Shares in G4S were down 9.5% at 83.04 pence each in London.
The FTSE 250-listed company plans to restore dividend payments once the impact of the pandemic has abated. Earlier in March, the company said it will propose a final dividend of 6.11 pence per share for 2019 at its annual general meeting.
London-based G4S, however, said that the financial impact of Covid-19 has not been material for its year-to-date performance. The company is working with employees, customers, suppliers, regulators and governments to strengthen business continuity plans and to protect the company and its key stakeholders.
At the end of 2019, G4S had liquid resources of GBP1.3 billion, comprising cash, cash equivalents and bank overdrafts of GBP500 million and committed, unuse credit facilities of GBP800 million. It had outstanding bank loans and loan notes of GBP2.3 billion, of which only GBP56 million is scheduled for repayment in 2020.
By Tapan Panchal; tapanpanchal@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
