- Engineering company IMI scrapped its dividend to preserve cash and pulled in anticipation of tougher conditions amid the ongoing Covid-19 pandemic.

The move to withdraw the dividend would save the company £71m in cash. The company also outlined other cost saving measures in anticipation of tougher conditions, including a hiring freeze in all but exceptional circumstances, reduced discretionary spending, and reductions to capital expenditure.

The board and executive committee members had agreed to a 20% salary reduction, effective 1 May, for at least the next three months, the company said.

'Although the impact on our trading to date has been relatively modest, given the significant volatility within our market environment, we believe it is now prudent to withdraw that guidance,' it added.

At 8:45am: [LON:IMI] Imi PLC share price was -26p at 698p

Story provided by