Glasgow-headquartered temporary power specialist Aggreko is pressing ahead with preparations for the Tokyo Olympics.
But the firm said it will pull a planned dividend payout to shareholders next month as uncertainty over the Covid-19 impact grows.
Aggreko said it will review the decision later in the year once the outlook becomes clearer but also said its forecasts for financial performance this year no longer held.
In a statement the company said withdrawing the dividend was a significant decision “but the board believes that it is an appropriate and prudent measure to take at this point as the group seeks to preserve its strong liquidity, cashflow and financial position through these most uncertain times”.
The company has a major contract to support the Tokyo Olympics and Paralympic Games which are planned to start on 24 July.
“We are in regular dialogue with our customer on the Tokyo 2020 Olympic and Paralympic Games and, in line with the current International Olympic Committee guidance, we are continuing our work in support of delivering the Games,” it said.
Aggreko stressed it was in a strong financial position. At the end of February it had £606 million at its immediate disposal and said it has considered a range of scenarios to stress-test the group’s liquidity position through to the end of this year.
“These show that even in the reasonably probable worst case scenario, with appropriate mitigating actions, we expect to remain within the group’s financial covenants, while maintaining headroom under our existing committed facilities,” it said.
“We have a global, diversified business, with a robust balance sheet and we are taking immediate measures to contain our costs and protect our strong financial position,” it said.
