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Construction software specialist Elecosoft said it would not pay a final annual dividend as it looked to conserve cash amid Covid-19 uncertainty even as the company reported a jump in profit on higher revenue.
'Elecosoft's strong trading performance and cash generation in 2019, and, ironically, the strong start to trading in 2020, would normally have warranted the payment of an increased final dividend,' the company said.
'However, having regard to the uncertainties created by the Coronavirus situation and the need to conserve our cash resources, the board has decided to not recommend a final dividend,' it added.
For the year ended 31 December 2019, pre-tax profit was up 45% to £3.5m and revenue up 14% to £25.4m on-year.
During the year under review, the company also eliminated its net bank debt of £1.8m as at 31 December 2018 and generated a net cash position as at 31 December 2019 of £1.1m.
'Although Elecosoft performed well in 2019 and in the first three months of 2020, we must now do our best to confront the impact of Coronavirus worldwide, the breakout of which in the first instance impacted on our employees, and then on our customers,' the company said.
At 9:17am: (LON:ELCO) Elecosoft PLC share price was +1p at 75p