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.

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.

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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