DWF Share Price Crashes as Keystone Cancels Dividends In Latest Virus Disruption
DWF's issues a profit warning while Keystone becomes the latest listed firm to cancel its dividend payouts.
March 27, 2020 at 06:49 AM
3 minute read
DWF and Keystone are the latest U.K. listed firms to be hit by the coronavirus disruption, as the market reels in the face of the global pandemic.
DWF's share price tumbled by 22% to 69.6p Friday morning—its lowest point since it listed last March having last month climbed to as high as 143p. As of 10.30AM Friday, the price had bounced slightly to 86.9p.
The firm warned its investors that it expects to generate lower than anticipated profits in FY20 alongside higher than anticipated net debt.
In a London Stock Exchange announcement on Friday, the main market listed firm said that it estimates for the financial year ending 30 April 2020 will show growth of between 15% and 20%, "which is below management's previous expectations".
The firm, which listed on London's main market a year ago, has attributed this to the current business environment which "will slow collections", but has reassured investors that the group has "sufficient liquidity to deal with current working capital requirements".
Keystone Law, meanwhile, is the latest U.K. listed law firm to scrap its dividend payouts. The firm said in a Stock Exchange announcement on Friday that "in these uncertain time…it will not be recommending a final dividend payment to shareholders" and that it will resume distributions "when circumstances make it appropriate to do so".
Battling increasingly unpredictable market conditions, this week listed firms have taken action to off-set anticipated losses.
On Tuesday, Gateley cancelled its dividend payments, with The Ince Group following suit later in the week. On Thursday, Knights said it will reduce its board member salaries by 30%, and slash the salaries of "all staff whose salaries are £30,000 or more" by 10%, from April 1.
DWF has stopped short of cancelling its dividend, saying that "the payment of any final dividend for FY20 will be determined later in the year once the group's financial results for FY20 are known".
|Read more:
Gateley Cancels Shareholder Payouts in Hedge Against COVID-19 Fallout
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