Plus   Neg

IWG Suspends Dividend, Share Buyback Amid COVID-19; Stock Dips

Shares of IWG plc (IWG.L) were losing around 9 percent in the early morning trading in London after the operator of co-work and workspace companies Monday said it is too early to provide earnings guidance for the remainder of the current financial year due to the evolving nature of the coronavirus or COVID-19 pandemic.

Further, the company decided not to pay the final dividend of 4.8p previously declared with the Group's 2019 full year results. The resolution in respect of the 2019 final dividend will not be proposed at the AGM scheduled to be held on May 12.

The company also decided to temporarily suspend the updated 100 million pounds share repurchase program that was announced on March 3.

The company said in its statement, "We expect there to be pressure on our global business as countrywide lockdowns are implemented in an increasing number of geographies. We continue to closely monitor the ongoing developments in relation to COVID-19 and are taking appropriate actions to reduce operational costs, limit both growth and maintenance capital expenditure and optimise cash flows."

IWG noted that the implications of COVID-19 are difficult to determine, yet the Board is confident in the long-term structural growth drivers of the global flexible work market.

Further, the company said its financial position remains strong, with a low level of financial leverage and substantial access to liquidity.

In London, IWG shares were trading at 138.75 pence, down 13.28 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
JPMorgan Chase CEO Jamie Dimon said it expects the bank's earnings to be "down meaningfully" in 2020 due to the disruptions created by coronavirus pandemic. He also noted that the U.S. was not adequately prepared for the pandemic. In his annual letter to the company's shareholders, Dimon said that the bank's board may consider suspending the dividend in an extremely adverse scenario. The U.S. Food and Drug Administration launched a national effort to facilitate the development of blood-related therapies to combat the ongoing coronavirus (COVID-19) pandemic. The FDA is focused on two investigational therapies derived from human blood called convalescent plasma and hyperimmune globulin, which are antibody-rich blood products made from blood donated by people who have recovered. Gilead Sciences Inc. said it is donating its existing supply of 1.5 million individual doses of remdesivir, its investigational medicine for coronavirus or Covid-19. The drug, which is yet to get regulatory approval, is available for compassionate use, expanded access and clinical trials to treat patients with the most severe symptoms of COVID-19.
Follow RTT