Cancellation of Interim Dividend

RNS Number : 2698I

Softcat PLC

31 March 2020

 

31 March 2020

Softcat plc

Cancellation of Interim Dividend

Softcat plc (LSE: SCT.L; "Company") a leading UK provider of IT infrastructure products and services, is providing notice of the cancellation of the interim dividend in light of the Covid-19 pandemic.

Since the announcement of the Company's interim results on 17 March 2020, trading has been in line with our expectations.  Nevertheless, the Board has considered changes in Government guidance in respect of Covid-19. The Company considers it prudent, given the highly unusual circumstances, to protect the Company's cash position and to maintain flexibility around the timing of dividend payments in relation to the current financial year.  

Accordingly, the Board has decided to cancel the payment of the interim dividend of 5.4 pence per share (equivalent to a cash outflow of £10.7 million), which would have been paid on 15 May 2020, but will take the opportunity to review this decision later in the year as the impact of Covid-19 becomes clearer.

Martin Hellawell, Chairman said:

"Since the announcement of our interim results, UK government policy has evolved rapidly.

Softcat continues to engage well with customers.  We thank our staff for their speed and agility in transitioning to a new working environment.

The Board's decision to cancel the payment of the interim dividend reflects the uncertainties facing the business community and the wider economy at this time.  We continue to run the business as usual but are taking a prudent stance on cash conservation given the unprecedented and fast-changing circumstances."

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

For further information, please contact:
Softcat plc
Graeme Watt, Chief Executive Officer	[phone]
Graham Charlton, Chief Financial Officer
Media Enquiries ‐ FTI Consulting LLP
Ed Bridges/Matt Dixon/Dwight Burden	[phone]

 

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