ScS suspends interim dividend due to Covid-19
Furniture retailer ScS suspended the payment of its interim dividend on Monday but said it was "as well positioned as it can be" to weather the coronavirus pandemic.
The company, which has temporarily closed its stores, distribution network and head office, said it continues to review all ongoing cash expenditure to protect its liquidity in the short term.
“The business has moved in a swift but considered way with regards to furloughing an appropriate number of our colleagues, whilst, at the same time, maintaining customer support. We continue to monitor and utilise any further government support that is available," it said.
"Our focus in recent years on building a business with increasing resilience is reflected in the strength of our balance sheet and the level of flexibility in our cost base. We cannot predict the impact of Covid-19 but we believe the group is as well positioned as it can be."
Nevertheless, ScS said it would be "inappropriate" to pay an interim dividend and use its cash "for anything other than protecting the financial strength and resilience of the business".
The company also said that chief executive officer David Knight, whose intention to retire was announced in January, will now stay on until at least the end of July 2021. "David is prepared to be flexible should the appointment of his successor and a smooth handover require a little longer," ScS said.