Morson cuts divi after debt levels rise higher than planned
Shares in specialist design and recruitment firm Morson plunged 30% after the firm admitted that debt levels are likely to be higher than previously anticipated and said it will not pay a full year dividend.
Shares in specialist design and recruitment firm Morson plunged 30% after the firm admitted that debt levels are likely to be higher than previously anticipated and said it will not pay a full year dividend.
The company also said that its trading performance for the year ended 31 December is likely to be towards the lower end of the range of expectations.
It was keen to emphasise that debt levels would be well within facility limits.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In a statement the firm said: "The global uncertainty in the wider economy seems set to continue for some time and whilst not all sectors that Morson trades within are affected, the outlook for 2012 is less clear. This can provide opportunities as well as challenges.
"As such the board, mindful of the generally weak trading environment, the company's higher net indebtedness following overseas expansion and current and likely future working capital requirements, has decided that the company will not pay a final dividend for the year ended 31 December."
The firm added that it will consider the reinstatement of a dividend ahead of the publication of its interim results for the six months ended 30 June 2012.
The share price dived 31.03% to 50p by 15:48.
NR
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Zoopla expects house prices to remain ‘subdued’ despite surge in buyer demand
News Zoopla’s latest house price index showed a fall in mortgage rates had boosted property market confidence. But a rise in supply has kept house price inflation in check.
By Henry Sandercock Published
-
Best funds to add to your ISA or SIPP before the Budget
With Labour expected to increase taxes, ISAs and SIPPs could be a great way to protect yourself from CGT hikes. We look at the best funds to buy now
By Katie Williams Published