REG - Centaur Media PLC - Trading update, suspension of dividend and AGM

Centaur MediaAnnouncement

27/05/2020 08:25

RNS Number : 0538O
  
Centaur Media PLC
  
27 May 2020
  
 

Centaur Media plc
Incorporated in England and Wales
Registration number: 04948078
LEI: 2138005WK87G7DQRQI62
ISIN: GB0034291418
  
27 May 2020
Centaur Media Plc
(the "Company" or the "Group")
COVID-19 
Trading update, suspension of dividend and AGM
Centaur Media Plc, an international provider of business information and specialist consultancy, provides a further update on how its business is trading during the COVID-19 pandemic.  
Since updating the market on 8 April, the Group has taken a number of actions to mitigate the impact of COVID-19 on its business, to protect the health and safety of its employees and customers, and to ensure its long-term financial security. 
The Board has been encouraged by the performance of a number of its brands. The Mini-MBA, our flagship accredited e-learning programme, has enjoyed strong demand for its online courses, Econsultancy and Xeim Labs have won some valuable contracts, and corporate subscription renewals at The Lawyer remain healthy.
However, as we approach the second half of the financial year, the Group faces two COVID-19 challenges. First, MarketMakers, our lead generation and telesales operation, has experienced a sharp fall in revenue as a number of its clients have experienced disruption to their own businesses. Capacity was reduced quickly through the furloughing of approximately half of MarketMakers' staff, and decisive action has been taken to cut other costs. This is a low margin operation and the business is expected to continue at a significantly lower level of activity for the foreseeable future.
Second, whilst we are still planning to run our flagship events, The Festival of Marketing, The Lawyer Awards and The Lawyer General Counsel Summit in the second half of this year, these may be affected by extended requirements for social distancing. To ensure that our content can be delivered effectively and reliably to our audiences, we are incorporating enhanced digital delivery to supplement or replace physical activities. At this stage it is difficult to forecast the impact these decisions may have on Centaur's profitability in the second half of the financial year.




 
Cash, balance sheet and dividend
In order to conserve cash, management continues to take a rigorous approach to all costs and is implementing a reduction in board and senior management remuneration.
In addition, the Company holds an undrawn banking facility of £25 million and Centaur's management has held positive discussions with its banks with regard to amendment of its facility covenants, if required. 
The Board has a progressive dividend policy which recognises the importance to our shareholders of the dividend as part of their overall return. However, as described above, the uncertainty posed by the COVID-19 outbreak means that we are focused on minimising cash outflows and strengthening our financial position in the short term. As such, the Board believes it is prudent not to pay the final dividend of 0.5p per share proposed at the time of its 2019 results announcement on 18 March 2020. The Board will keep the situation under review and will determine the timing for resumption of dividends once the market situation and the effect of COVID-19 on Centaur's business and its cashflow have become clearer.
AGM
Due to the current UK Government guidance on social distancing and prohibition on non-essential travel and public gatherings, the Board regrets that it will not be possible for shareholders to attend this year's AGM on 30 June 2020 in person.  Further details are set out in the Notice of AGM that will be posted to shareholders with a Form of Proxy and the 2019 Annual Report on 28 May 2020.
 
-Ends-
 
Enquiries:
Centaur Media Plc                                                                
 
Swag Mukerji, Chief Executive                                              020 7970 4000                         
Simon Longfield, Chief Financial Officer
 
Teneo                                                                                                             
Paul Durman/Rebecca Hislaire                                              07793 522824 / 07876 879856 
 
Note to editors
Centaur is an international provider of business information and specialist consultancy that inspires and enables people to excel at what they do, raising the standard for insight, interaction and impact. 
Leading brands include: Econsultancy, Marketing Week, Festival of Marketing, MarketMakers, Creative Review, Influencer Intelligence, Fashion & Beauty Monitor, Oystercatchers and The Lawyer.
 


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