Published on March 30th, 2020 | by The GC Team0
Midwich suspends dividend and acquisition activities due to virus
AV specialist distributor Midwich is to withdraw its intention to propose a final dividend for 2019 as COVID-19 continues to evolve rapidly across the countries in which the Group operates.
The company today said it had also taken actions across the Group to preserve cash and liquidity, including the temporary suspension of acquisition activities and capital expenditure together with tighter controls on working capital and overheads.
The extent to which the business is currently affected varies by country, the business said.
“While it is too early to accurately determine the evolving impact of COVID-19 on the Group’s performance in the current financial year, the Board believes that the audio visual industry is one of long-term structural growth and that we are well positioned for when markets begin to return to normal,” a statement read.
“The Board believes that this balance sheet strength, together with a strong and supportive relationship with our banking partners, means that the Group is well placed to deal with current uncertainties.”