Centaur Media PLC Trading update, suspension of dividend and AGM (0538O)
May 27 2020 - 3:25AM
UK Regulatory
TIDMCAU
RNS Number : 0538O
Centaur Media PLC
27 May 2020
Centaur Media plc
Incorporated in England and Wales
Registration number: 04948078
LEI: 2138005WK87G7DQRQI62
ISIN: GB0034291418
27 May 2020
Centaur Media Plc
(the "Company" or the "Group")
COVID-19
Trading update, suspension of dividend and AGM
Centaur Media Plc, an international provider of business
information and specialist consultancy, provides a further update
on how its business is trading during the COVID-19 pandemic.
Since updating the market on 8 April, the Group has taken a
number of actions to mitigate the impact of COVID-19 on its
business, to protect the health and safety of its employees and
customers, and to ensure its long-term financial security.
The Board has been encouraged by the performance of a number of
its brands. The Mini-MBA, our flagship accredited e-learning
programme, has enjoyed strong demand for its online courses,
Econsultancy and Xeim Labs have won some valuable contracts, and
corporate subscription renewals at The Lawyer remain healthy.
However, as we approach the second half of the financial year,
the Group faces two COVID-19 challenges. First, MarketMakers, our
lead generation and telesales operation, has experienced a sharp
fall in revenue as a number of its clients have experienced
disruption to their own businesses. Capacity was reduced quickly
through the furloughing of approximately half of MarketMakers'
staff, and decisive action has been taken to cut other costs. This
is a low margin operation and the business is expected to continue
at a significantly lower level of activity for the foreseeable
future.
Second, whilst we are still planning to run our flagship events,
The Festival of Marketing, The Lawyer Awards and The Lawyer General
Counsel Summit in the second half of this year, these may be
affected by extended requirements for social distancing. To ensure
that our content can be delivered effectively and reliably to our
audiences, we are incorporating enhanced digital delivery to
supplement or replace physical activities. At this stage it is
difficult to forecast the impact these decisions may have on
Centaur's profitability in the second half of the financial
year.
Cash, balance sheet and dividend
In order to conserve cash, management continues to take a
rigorous approach to all costs and is implementing a reduction in
board and senior management remuneration.
In addition, the Company holds an undrawn banking facility of
GBP25 million and Centaur's management has held positive
discussions with its banks with regard to amendment of its facility
covenants, if required.
The Board has a progressive dividend policy which recognises the
importance to our shareholders of the dividend as part of their
overall return. However, as described above, the uncertainty posed
by the COVID-19 outbreak means that we are focused on minimising
cash outflows and strengthening our financial position in the short
term. As such, the Board believes it is prudent not to pay the
final dividend of 0.5p per share proposed at the time of its 2019
results announcement on 18 March 2020. The Board will keep the
situation under review and will determine the timing for resumption
of dividends once the market situation and the effect of COVID-19
on Centaur's business and its cashflow have become clearer.
AGM
Due to the current UK Government guidance on social distancing
and prohibition on non-essential travel and public gatherings, the
Board regrets that it will not be possible for shareholders to
attend this year's AGM on 30 June 2020 in person. Further details
are set out in the Notice of AGM that will be posted to
shareholders with a Form of Proxy and the 2019 Annual Report on 28
May 2020.
-Ends-
Enquiries:
Centaur Media Plc
Swag Mukerji, Chief Executive 020 7970 4000
Simon Longfield, Chief Financial Officer
Teneo
Paul Durman/Rebecca Hislaire 07793 522824 / 07876 879856
Note to editors
Centaur is an international provider of business information and
specialist consultancy that inspires and enables people to excel at
what they do, raising the standard for insight, interaction and
impact.
Leading brands include: Econsultancy, Marketing Week, Festival
of Marketing, MarketMakers, Creative Review, Influencer
Intelligence, Fashion & Beauty Monitor, Oystercatchers and The
Lawyer.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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