(Alliance News) - Hill & Smith Holdings PLC said Friday it has withdrawn its recommendation for paying 2019's final dividend of 23.0 pence per share, as the group looks to manage its cash in the face of trading uncertainty caused by Covid-19.
For the first two months of 2020, Hill & Smith - which designs, manufactures and supplies products for the construction industry - said that revenue and operating profit were in line with management expectations.
Since mid-March, the Solihull-based group has experienced disruption in its French and Indian operations, while in the UK, Hill & Smith has closed or reduced activity in half of its operations. In the US, all businesses remain open despite a marked slowdown in demand.
Looking ahead, the group said it is too early to provide any guidance for earnings for the rest of 2020, but has put in place several, operational, cost and cash management initiatives to ensure that Hill & Smith remains tightly managed.
As at February 29, Hill & Smith had GBP332.6 million in committed facilities in place.
In addition, the group's annual general meeting has been delayed from June 23 from its original date of May 21.
Shares in Hill & Smith were down 5.0% at 1,015.00 pence on Friday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Hill & Smith (HILS)