StockMarketWire.com - Housing sector services provider Mears said it wouldn't pay a final dividend and withdrew its annual financial guidance due to the spreading coronavirus.

Mears said it had commenced dialogue with debt providers and expected them to provide additional facilities over the next month.

'There is no immediate requirement but the board wishes to secure sufficient headroom in the event that the current emergency continues for an extended period,' the company said.

Mears said over 90% of its revenue was sourced through contracts with local and central government entities.

It estimated about 30% of its revenue was related to housing activities regarded by government as essential services or emergency maintenance services.

However, it said other housing services would be classified as lower priority in the current environment.

Mears said it had a committed £170m revolving credit facility that expired in November 2022. Net debt at 31 December was £51.0m.

'The board has concluded that, while positive progress is being made on the actions above, the level of uncertainty created by the Covid-19 pandemic is such that it should not provide guidance with regard to financial performance for the current year until a clearer outlook emerges,' Mears said.


At 8:58am: [LON:MER] Mears Group PLC share price was +2p at 151.5p



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