SThree PLC (LON:STEM) has announced it has stopped all hiring alongside other measures to cut costs during the coronavirus pandemic.
The recruiter, which focuses on candidates in science, technology, engineering, and mathematics (STEM), is not to propose the final dividend of 10.2p per share, saving £13.5mln.
READ: SThree sees “robust” demand but cannot predict coronavirus hit
Most of the staff are transitioning to remote working arrangements while the board is taking a 20% pay cut.
As of 31 March, the firm had £2mln cash, a £50mln revolving credit facility fully drawn down and a £5mln overdraft.
Analysts at house broker Liberum slashed the target price to 270p from 400p, cut estimates for 2020 underlying earnings by 57% to £18mln but said the balance sheet is to remain net cash "even in a worst-case scenario".
"We expect long-term secular growth in SThree’s markets and we think that SThree has sufficient balance sheet strength to weather the current storm," analysts commented.
Shares were flat at 205.5p on Monday morning.
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