StockMarketWire.com - Specialist product manufacturer Morgan Advanced Materials scrapped its final dividend as part of cost savings measures designed to buffer its business from the Covid-19 crisis.

The company said it had also decided to suspend dividend payable on its preference shares.

'We will review these dividend decisions later in the year once the outlook is clearer,' it said.

Sales for the 12 weeks to 21 March fell 3.2% lower on-year, on an organic constant-currency basis, though the fall was a more modest 0.2% excluding China.

'While we are currently seeing the position improve in China, with all of our factories there reopened, the Covid-19 outbreak has escalated globally,' Morgan Advanced Materials said.

'At this point we have six businesses closed across Italy, India and South Africa.'

'The situation remains highly uncertain and it is therefore impossible to predict with any degree of certainty the impact this will have.'

'We are consequently withdrawing our previous guidance for 2020.'






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