SCS Suspends Dividend Payment & Issues Board Update

The Group announced on 24 March 2020, that it had temporarily closed its stores, distribution network and head office in order to protect our people and our customers. Whilst stores remain closed, ScS has continued to provide support to our customers and employees through dedicated teams, who we have enabled to work remotely. 

Financial position & interim dividend 

The Group continues to review all ongoing cash expenditure to protect our 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. 

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. 

Despite the strength of our balance sheet, the Board feels that it is appropriate to suspend payment of the interim dividend, which was due to be paid on 7 May 2020. At a time when the UK Government is supporting ScS, it seems inappropriate to use the cash for anything other than protecting the financial strength and resilience of the business.

The Board recognises the importance of income to the Group's shareholders and will continue to assess when it is appropriate to recommence dividend payments. 

Board update 

As announced on 29 January 2020, David Knight notified the Board of his intention to retire as Group CEO. He had given 12 months' notice in accordance with his contract. Given current circumstances, the Board and David have agreed that he will not retire before 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. The Board is very grateful to David for his flexibility regarding his retirement date.

Source : SCS Group PLC

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