Brief: Aquila ditches dividend, CEO steps down

Aquila Services

07/04/2020 07:08

April 7 (Reuters) - Aquila Services Group PLC  AQSG.L :
    * " NECESSARY MEASURES IMPLEMENTED BY GOVERNMENT TO MITIGATE
EFFECTS OF COVID-19 VIRUS ARE HAVING AN IMPACT ON ABILITY OF
GROUP TO PROGRESS EXISTING CONTRACTS AND WILLINGNESS OF EXISTING
AND POTENTIAL CLIENTS TO MAKE FIRM COMMITMENTS IN THIS TIME OF
UNCERTAINTY.
    * INEVITABLY THIS WILL REDUCE OUR FEE EARNING CAPACITY AND
FULFILLING SOME OF OUR COMMITMENTS UNTIL WORKING ARRANGEMENTS
RETURN TO NORMAL.
    * EXPECTED GROWTH COMPARED TO PREVIOUS FINANCIAL YEAR WILL
NOT NOW
BE ACHIEVED ALTHOUGH GROUP REMAINED PROFITABLE AND CASH
GENERATIVE.
    * TO SUPPORT CASHFLOW BOARD INTEND NOT TO RECOMMEND A FINAL
DIVIDEND FOR YEAR ENDED 31 MARCH 2020.
    * A NUMBER OF COST REDUCTION MEASURES ARE BEING PUT IN PLACE
WHICH
HAVE ONLY A MARGINAL IMPACT ON ONGOING FEE EARNING CAPACITY BUT
RELATE TO FUTURE EXPANSION PLANS OF GROUP.
    * AS PART OF THESE SAVINGS STEVE DOUGLAS CBE GROUP CHIEF
EXECUTIVE
OFFICER WILL BE STANDING DOWN AND AS MUCH OF GROUP CEO
RESPONSIBILITIES AS IS PRACTICAL WILL BE DEVOLVED TO
SUBSIDIARIES' BOARDS.
    * AFTER DISCUSSION WITH GROUP BOARD IT HAS BEEN AGREED THAT
GROUP
CHAIR WILL TEMPORARILY ASSUME RESPONSIBILITIES OF AN EXECUTIVE
CHAIR ON A PART-TIME BASIS UNTIL CRISIS HAS ABATED AND GROUP CAN
PLAN HOW BEST TO RETURN TO A GROWTH PATH.

Source text for Eikon:  ID:nRSG9382Ia 
Further company coverage:  AQSG.L 

 (Reporting By Sinead Cruise)
 ((sinead.cruise@thomsonreuters.com;))