31/03/2020 - 11:29

SRG withdraws guidance, defers dividend

31/03/2020 - 11:29

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SRG Global has withdrawn its full-year earnings guidance and deferred an interim payout to shareholders, citing the uncertain situation around COVID-19 and rapidly evolving virus-related measures.

SRG withdraws guidance, defers dividend
David Macgeorge says SRG is delivering essential services on a reduced scale in New Zealand.

SRG Global has withdrawn its full-year earnings guidance and deferred an interim payout to shareholders, citing the uncertain situation around COVID-19 and rapidly evolving virus-related measures.

The Subiaco-based group says it has implemented cost mitigation initiatives in response to the pandemic that will ensure a sound financial position.

SRG withdrew its previous earnings guidance, which included adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of between $30 million and $34 million.

The company has also deferred its fully franked interim half-cent per share dividend, which was due to be paid in April.

The $2.2 million payout is now due on October 29.

SRG Global managing director David Macgeorge said the company was continuing most of its construction, asset services and mining services in Australia and overseas.

He said, however, SRG was delivering only essential services and on a reduced scale in New Zealand, where the government had recently imposed a level-four shutdown.

SRG Global has proactively implemented safety, supply chain and cost mitigation measures to manage through this period of uncertainty caused by COVID-19,” Mr Macgeorge said.

“The company is well placed to capitalise on the expected increase in investment in the sectors in which we operate as market conditions stabilise.”

SRG Global said it remained in a solid financial position.

It disclosed in its half year results $67.2 million in cash and undrawn working capital, and record work in hand of $737 million, up 42 per cent on the previous 12 months.

Shares in SRG Global were trading 4.5 per cent lower at 1:10pm AEDT today to 21 cents per share.

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