Bakery manufacturer Finsbury Food cancelled its dividend and warned trading in its foodservice business was likely to continue to be 'significantly' impacted following lockdown measures nationwide to contain the Covid-19 outbreak.
The company said it was taking actions to manage short-term costs, including withdrawing its proposed interim dividend, temporarily suspending production at its Kara site in Manchester and freezing all discretionary expenditure and capital investment.
The move came as the company reported that its UK foodservice business, which accounted for approximately 20% of revenue, had seen a 'significant' reduction in demand following the UK government's decision to close food outlets, schools and other public places where food was provided.
'Until we have more visibility over the Covid-19 situation, we will continue to manage the business with a view to securing maximum stability in the short term for shareholders, employees, customers and suppliers and will provide the market with updated guidance on performance as and when appropriate,' Finsbury Food said.
At 10:14am: (LON:FIF) Finsbury Food Group PLC share price was +1p at 64.5p