COVID-19 Update, Dividend Deferral and AGM

RNS Number : 2610K

GlobalData PLC

21 April 2020

 

21 April 2020

GlobalData Plc

COVID-19 Update, Dividend Deferral and AGM

GlobalData PLC, the global provider of data, analytics, and insights comments on current trading and the wider impact of the evolving COVID-19 pandemic.

COVID-19 Update

GlobalData plc (the "Company") continues to closely monitor the evolving COVID-19 (coronavirus) situation and its impact on its business. GlobalData's priority remains the health and safety of our colleagues, our clients and our wider stakeholder group, whilst continuing to operate and provide our clients with real-time data, analytics, and insight that helps them navigate through these uncertain times.

As a business, we are following all relevant government guidelines in the countries where we operate and, given the agile and digital nature of our business we have been able to transition smoothly to a 'work from home' model in relatively short order and have not needed to furlough any employees or rely on government support. We recognise that many of our subscription clients are facing real challenges in their markets and are pleased that we have been able to offer a continued service, without any disruption, as well as developing a significant amount of COVID-19 specific content that is giving our clients unique insights into their sectors and geographies, at a time when they need it the most. We have also been active in delivering free Covid-19 content through our news sites, which is helping a wider audience understand their markets and the broader economic and health impacts of the pandemic. The development and deployment of this content has been achieved in a very short time period and is a good demonstration of our agile centralised operating model.

For our colleagues, we are actively ensuring that they have a strong and stable digital platform, which enables them to continue to perform in their roles and keep in touch. We are very focused on ensuring that our teams are coping with the challenges that working from home brings and offering the support and flexibility required. We are sending out regular internal communications, including employee surveys focused around well-being, mental health and employee satisfaction, as well as holding regular information sessions to keep our colleagues up to date with company news and initiatives.

Together as a business, our colleagues have continued to support our nominated charities for 2020, but we are also pleased to have chosen an additional eight charity partners in our local communities across the globe who are working on specific COVID-19 causes. To date we have raised over £100,000 and we are committed to continue to support our global communities through these difficult times.

With a high proportion of recurring revenue and broad sectorial diversification, our business model is resilient and renewal rates have been strong through the first quarter of the current financial year. Over 75% of the Group's revenue derives from recurring subscriptions, so our revenue therefore remains largely unaffected since the onset of the COVID-19 pandemic and we continue to have good visibility for the remainder of the year. As a result of COVID-19, some Events revenue has been deferred into the second half of 2020. Revenue from Events accounts for less than 10% of the Group.

Dividend Deferral

Although we have a resilient business model, we are aware that we are in unprecedented and very uncertain times. As a management team we are very focused on costs and our cash flow and consequently we have taken measures to scale back our planned sales team recruitment as well as postponing filling a number of open positions. We have a strong balance sheet, with good cash reserves and working capital along with financing arrangements that give us ample liquidity. However, we have taken the decision to delay the payment of the final dividend for the year ended 31 December 2019 by thirty business days to 9 June, which is within sixty business days of the record date of 27 March 2020 to allow us additional time to continue to assess the full impact of COVID-19, as allowed under revised LSE guidance.

AGM

In light of the COVID-19 outbreak and the enhanced restrictions imposed by the UK Government on 23 March 2020, shareholders will not be permitted to attend our Annual General Meeting, which will be held today at 10.00am, in person.  This will safeguard our shareholders' and employees' health. Instead, shareholders can attend the meeting by joining it electronically in accordance with the instructions in the Notice of Meeting. If you are interested in this option, please call 020 7936 6400 in order to make the necessary arrangements.

ENQUIRIES: GlobalData Plc	0207 936 6400
Mike Danson, Chief Executive Officer
Graham Lilley, Chief Financial Officer
N+1 Singer	0207 496 3000
James Maxwell
Justin McKeegan
Hudson Sandler	0207 796 4133
Nick Lyon

 

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