SIG PLC (LON:SHI) has joined the list of firms scrapping their dividend plans and guidance for the coming year as it warned the coronavirus epidemic will cause “material changes” to its trading environment.
In a trading update, the insulation maker said while it had yet to experience any significant sales impact from coronavirus in the UK, trading had “continued to be subdued” from the first two months of the year, where it reported an operating loss of around £9mln and that like-for-like sales had fallen 11%.
READ: SIG slides as CEO and CFO exit
Despite this, SIG said the vast majority of its trading sites in mainland Europe remained open despite government restrictions on movement and that trading had “generally held up”.
“The group will continue to provide services and support to its customers, and the wider construction industry, in both the UK and continental Europe, in line with governments' guidance”, the firm said.
As a result of the current challenges, SIG said it had identified a number of measures to reduce its cash outflow, including pausing investment programmes.
The company added that it has cash resources of around £135mln and is “in dialogue” with its lending group to “release additional liquidity as required”.
For the year ended 31 December 2019, SIG expects to report an underlying pre-tax profit of £42mln, in line with guidance.
Shares in the firm were 0.3% higher at 31p in early trading.