Equiniti Group PLC - Crawley-based financial administration outsourcer - Swings to pretax loss of GBP700,000 for first half of 2020 from GBP11.6 million profit a year prior. This was as revenue fell 12% to GBP243.0 million from GBP275.1 million. Says decline in earnings due to Covid-19, lower level of higher margin projects and less interest incurred.
No interim dividend was declared compared to 1.95 pence the previous year as priority remains the reduction of debt. Says it does not plan to return to dividend payments or material acquisition activity until increases in its order book translate to profit growth and leverage reduces.
Looking ahead, Chief Executive Guy Wakeley says: "Whilst the timing and rate of the recovery from the Covid-19 pandemic remain unknowable, our defensive revenues along with actions to reduce cost, preserve cash and strengthen services provide us with the confidence that we have the resilience to weather an extended period of uncertainty."
Current stock price: 107.60p, down 25% on day
Year-to-date change: down 48%
By Ife Taiwo; ifetaiwo@alliancenews.com
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