Softcat has cancelled its interim dividend to shareholders after the government’s COVID-19 warning.
The reseller said that, while trading has been as expected since it published its H1 results last month, it has scrapped the payment due to “changes in government guidance” related to COVID-19.
The dividend was expected to be paid in May.
Chairman Martin Hellawell said: “Since the announcement of our interim results, UK government policy has evolved rapidly. Softcat continues to engage well with customers. We thank our staff for their speed and agility in transitioning to a new working environment. The board’s decision to cancel the payment of the interim dividend reflects the uncertainties facing the business community and the wider economy at this time. We continue to run the business as usual but are taking a prudent stance on cash conservation given the unprecedented and fast-changing circumstances.”
Softcat said that the dividend of 5.4 pence per share would have equated to a cash outflow of £10.7 million.
It added that it will review the decision once the full impact of COVID-19 becomes clearer.
In March Softcat reported a first half sales increase of nearly 21 percent year on year.
CEO Graeme Watt told CRN that the firm has seen a spike in demand for hardware, specifically laptops, but added that this is expected to be short term.
