Prime People pulls dividend, warns of 'significant reduction' in demand

Recruitment business Prime People pulled its final dividend on Wednesday as it warned of a "significant reduction" in demand as a result of the Covid-19 pandemic.

The group said it remained "committed" to paying progressive dividends as soon as appropriate and when there was better clarity on the financial consequences of Covid-19.

Prime People said the impact of the pandemic had varied "considerably" by location and sector but stated it had taken "early action" against the virus, implementing a range of measures to protect itself from the financial impact of the outbreak.

The AIM-listed firm said it was managing staff costs through furlough, reductions in headcount, reduced hours and reductions in remuneration, while also minimising discretionary spending and stalling all planned capital expenditure.

Prime said its present focus was on cash management and matching expenditure to likely levels of business, as well as implementing certain measures to ensure that it was in a position to accelerate activity when markets improve.

As of 1100 BST, Prime People shares were down 2.62% at 59.40p.