(NSF ) has announced FY19 trading is in line with market expectations and has taken steps to mitigate the impact the current global situation caused by COVID-19 and preserve cash. Therefore the Company withdraws market guidance and prudently conserves cash by not recommending a final dividend in respect of the year ended 31 December 2019.
However, whilst it is too early to determine the full impact of COVID-19, the Group believes it is well positioned to benefit from a rapid recovery in business volumes, as soon as the prevailing conditions allow. Courageously, the Company is putting in place arrangements to offer credit to eligible 'key workers' during this challenging period.
Prudent lending has been reduced across all three divisions, but credit continues to be offered, subject to normal detailed assessment of affordability, in cases where there is an urgent need and/or where there is detailed knowledge of an existing customer.
With lending volumes decreased the Company can shift focus to managing collections and ensure that forbearance is offered to those customers particularly impacted by COVID-19.
FY19 Trading in-Line
The Company will announce full year results on 28 April 2020 and continues to expect normalised results for the year ended 31 December 2019 to be in line with expectations.
As the Company is unable to predict the full impact that COVID-19, it is withdrawing all previous guidance and medium-term targets until further notice. Whilst the Board is focussing on preserving cash during this unprecedented time it will not recommend or pay a final dividend in respect of the year ended 31 December 2019. The Board believes that by prioritising cash conservation they will be in a better place, when circumstances allow, placed to return to our normal lending and collections practices as quickly as possible.
Shares currently down circa 7% in early morning trade, which is equivalent to the FY19 Divi
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