Elementis plc (LON:ELM) has suspended its dividend and rejigged it banking covenants to give it more financial headroom.
The chemicals group said trading had been largely unaffected by coronavirus so far but in view of its impact elsewhere it was taking steps to mitigate any possible impact in the future.
Current liquidity is US$300m, Elementis said, which is immediately available while net debt at the end of December was US$454mln.
Given market and economic uncertainties, the group has relaxed its banking covenants for net debt as a ratio of underling earnings, while suspending the dividend will save it a cash payment of US$33mln.
Sites around the world remain open and are operating at normal levels, with overall progress in Personal Care, Coatings and Talc and flat conditions in Chromium.
Paul Waterman, chief executive, said: “While our business performance to-date is in line with our expectations, we are acutely aware of the increased level of market and macroeconomic uncertainty.
“The relaxation of our banking covenants and the decision to suspend the final dividend will create material additional financial headroom to counter the potential impacts of the global COVID-19 crisis.”