Elementis suspends divi to save cash in response to coronavirus
Specialist chemical company Elementis said it was suspending its final dividend to conserve cash in response to threats to demand from the coronavirus.
The company said its sites around the world remained open and were operating at normal levels.
“Trading and performance has been in line with our expectations, benefiting from efficiency actions implemented in 2019, with overall progress in Personal Care, Coatings and Talc. Market conditions are unchanged in Chromium,” the company said on Thursday.
“The impact of Covid-19 however presents significant demand and operating uncertainty.”
Chief executive Paul Waterman said Elementis had secured a relaxation of its banking covenants to 3.75 times net debt to core earnings from 3.25 times.
“While our business performance to-date is in line with our expectations, we are acutely aware of the increased level of market and macroeconomic uncertainty. Our focus remains on what we can control, namely active cost and cash management,” he said.