Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Consultancy company Science Group said it had decided to not recommend a dividend at its upcoming annual general meeting as it looks to conserve cash amid the Covid-19 crisis.
Payment of an interim dividend would be considered later in the year if appropriate, the company said.
'Despite the wider impact of the Covid-19 pandemic on the business environment, Science Group's financial performance continues to be in line with the board's expectations prior to the outbreak,' it said.
'As set out on 31 March 2020 and 4 May 2020, the board has not revised its expectations and the Group remains both profitable and cash generative.'
'Furthermore, the group benefits from a strong balance sheet with net cash and significant freehold property assets.
'However, prudence is an important consideration in the current unpredictable climate and the board has therefore continued to consider the appropriateness of paying a dividend at the present time, whilst also evaluating the best use of capital resources in the long-term interests of all stakeholders.'
'In this regard, the board has consulted with the group's major shareholders.'
Science Group said that it had also decided to renew its buy-back facility, subject to approval at its AGM, to provide market liquidity as appropriate.
It would also evaluate opportunities to deploy capital resources to increase the company's scale.