Elecosoft expects 'significantly higher' FY profits, pulls dividend
By Iain Gilbert
Date: Tuesday 07 Apr 2020
(Sharecast News) - Software firm Elecosoft said on Tuesday that full-year turnover and pre-tax profits were both "significantly higher" in 2019, but chose to pull its dividend and not issue any guidance for 2020 as a result of the Covid-19 pandemic.
Elecosoft did note that despite macroeconomic uncertainties caused by the outbreak, it had traded well in the first quarter of 2020.
However, the AIM-listed firm said feedback from some of its customers and channel partners suggested that it was likely to experience "a degree of disruption" to operations going forward - with face-to-face services already suffering.
Elecosoft also decided not to recommend the payment of a final dividend or to declare a second interim dividend as it did not consider the current global environment to be "normal times".
"We are always conscious of the need to manage and conserve our cash resources carefully and in present conditions, we have been even more vigilant in the control of operational costs and our general overheads because the maintenance of our financial strength is critical," said Elecosoft.
As of 1120 BST, Elecosoft shares had surged 20.39% to 62p.
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