StockMarketWire.com - Security contractor G4S scrapped its final dividend as government efforts to curtail the spread of Covid-19 intensified.

The company had on 11 March declared a final dividend for 2019 of 6.11p per share.

G4S said it would restore the dividend once the adverse impact of Covid-19 had abated, taking into account its target of attaining two times dividend cover.

G4S recently agreed to sell its conventional cash business for £727m and also had 'substantial liquid resources' of £1.3bn at the end of December, comprising cash, cash equivalents and bank overdrafts.

'Notwithstanding the company;s strong liquidity, robust business continuity plans and the immaterial financial impact to date, the board considers that the uncertainty relating to Covid-19 and its impact on economic activity in our key markets has increased substantially since 11 March,' it said.

'In these circumstances, the board has concluded that it is prudent and therefore in the best interest of the company that G4S does not pay a 2019 final dividend.'

'In addition, the company is taking steps to reinforce its focus on strong operating cash generation, capital efficiency and other measures to prioritise free cash flow.'


At 1:24pm: [LON:GFS] G4S PLC share price was -5.94p at 85.8p



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