Panoply holds off on dividend payments amid pandemic

28th Apr 2020 09:42

(Sharecast News) - Business consultants Panoply said on Tuesday that it will not pay any dividends for its recently wrapped up trading year despite expecting to report an increase in first-half revenues.
While Panoply said it recognised "the importance of dividend income to shareholders", in light of the current uncertainty caused by the Covid-19 pandemic, the group said not only would it withhold a dividend payment for 2020, but added that it was currently reviewing when to commence dividend payments in general.

On the trading side of things, the AIM-listed group said adjusted operating earnings and revenues for the year ended 31 March were both expected to meet market expectations - with second-half revenues of roughly ?18m, up from the ?13m reported a year earlier.

Panoply also said it was collaborating with a number of clients on the Covid-19 response, including Camden Council and the NHS.

"Whilst the increase in public sector work is expected to more than mitigate the softening in demand from clients in other sectors, given the nature of public sector work the group expects margins to be somewhat lower than previously," said Panoply.

As of 0940 BST, Panoply shares were up 5.32% at 49.50p.