- What IWG has cancelled Q4 dividend
- Why Protecting cash flows
- What next Countrywide lockdowns will put pressure on workspace business model
Workspace provider IWG has cancelled its dividend pay out to investors and suspended its £100m share buy back scheme as it attempts to mitigate the effect of coronavirus on its revenue streams.
IWG has decided not to pay the final dividend of 4.8p, which was declared in the company’s 2019 results. It noted the group’s dividend policy will be kept under review.
The flexible workspace provider has also temporarily suspended its £100m share buyback programme. Announced earlier this month, £27.5m has already been committed.
To protect its working capital position in the face of coronavirus, IWG extended the maturity profile of the £950m revolving credit facility until March 2025.
In a regulatory announcement, IWG said: “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.”
