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(Alliance News) - Reach PLC on Monday said it will not proceed with the final dividend it had proposed for 2019 as it announced other measures to preserve liquidity amid Covid-19 uncertainty.
The newspaper, magazine and digital publisher said it is unable to predict the extent to which the health crisis and lockdown will hurt advertising, print circulation and events. It has put in place cash conservation measures which include the cancellation of its proposed 4.05 pence per share final dividend, a 20% salary reduction for all board members, and the suspension of all bonus schemes for 2020.
The Daily Mirror publisher also has removed discretionary spend, arranged payment delays, and will be furloughing 20% of its employees under the UK government's Coronavirus Job Protection Scheme. It also will register for the Temporary Wage Subsidy Scheme in Ireland.
Reach added that due to uncertainty, it has suspended guidance for 2020 and beyond.
"These are very challenging times, and I would like to thank all our colleagues at Reach for their support and commitment. It remains difficult to predict the duration and long-term impact of the crisis on our sector, so it is key we take proactive measures now on cost to protect jobs and the Reach business for the long term, said Chief Executive Jim Mullen.
As at the end of 2019, Reach had net cash of GBP20.4 million and a four-year revolving credit facility of GBP65 million.
The stock was trading 8.7% lower at 82.20p each on Monday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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