Softcat has cancelled its previously announced interim dividend in light of the Covid-19 pandemic, after the company announced a big jump in sales and profits last month.
“The company considers it prudent, given the highly unusual circumstances, to protect the company's cash position and to maintain flexibility around the timing of dividend payments in relation to the current financial year,” said the firm in a statement.
It has therefore cancelled the payment of the interim dividend of 5.4p per share, which was equivalent to a cash outflow of £10.7m, which would have been paid on 15 May 2020.
The company says that it will review this decision later in the year as 'the impact of Covid-19 becomes clearer'.
The first half reported last month saw revenue reach £524m - up 20% - with operating profits up 19% to £40.5m.
The interim dividend was then increased 20% to 5.4p a share.
Softcat Chairman Martin Hellawell stated: “The board's decision to cancel the payment of the interim dividend reflects the uncertainties facing the business community and the wider economy at this time. We continue to run the business as usual but are taking a prudent stance on cash conservation given the unprecedented and fast-changing circumstances."