StockMarketWire.com - Fresh prepared foods maker Bakkavor cancelled its dividend and said the Covid-19 outbreak had created 'significant operational challenges,' initially in China and more recently in the UK and US.

As part of a series of measures to preserve cash, including the suspension of all non-essential capital investment and discretionary expenditure, the company said it had decided to suspend the proposed final dividend.



In the UK, which represented around 90% of group adjusted earnings (EBITDA), the 'impact of COVID-19 has resulted in a reduction in orders across all of our categories, most notably in our salads and food-to-go products,' the company said.

In the US, orders had reduced and in China, after a challenging period, the situation had now stabilised, with customers having reopened most of their stores, and the company's sites resuming service as orders gradually rebuild.

'Bakkavor has taken the decision to delay the publication of its annual report & accounts and its annual general meeting, due to have been held on 21 May 2020,' the company said.

At 9:01am: [LON:BAKK] Bakkavor Group PLC share price was -9.5p at 89.1p



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