Quartix Holdings PLC Measures taken re Coronavirus and Dividend (7141G)
19 March 2020 - 6:00PM
UK Regulatory
TIDMQTX
RNS Number : 7141G
Quartix Holdings PLC
19 March 2020
Quartix Holdings PLC
19 March 2020
Quartix Holdings plc
("Quartix" or the "Company")
Measures taken by Quartix re Coronavirus and Dividend
Quartix Holdings plc, a leading supplier of vehicle telematics
services to the fleet and insurance sectors, provides an update to
shareholders regarding the measures it has taken to mitigate the
effects of the Coronavirus pandemic on its employees and business.
The Board has also decided to recommend that shareholders reject
resolution 2, to be proposed at its forthcoming AGM on 24 March
2020, which is the resolution proposing the approval of the
Company's total final dividend of 10p per share, and which was
declared at the time of announcing its 2019 results ("AGM
Resolution 2").
Measures taken to protect employees and the business
On 9 March, and ahead of government advice, management took the
decision to offer all of the Company's employees the opportunity to
work from home. Approximately 85% of the workforce chose this
option, and by Friday 13 March the Company's systems and support
teams had implemented remote access, assistance with suitable home
computers, IP-based phones and a bank of new telephone numbers
(which the company will retain after the crisis) allowing all
incoming calls to be diverted to employees' home PCs. Since Monday
morning on 16 March, the Company has been operating in this manner.
Those employees who continue at the main facility in Wales are now
in a single-floor office which is at 10% of its capacity and with
substantial space between them.
Production shipments from China have continued without problems
so far and the Company believes that its final assembly
sub-contractor in the UK can operate home working.
Trading and financial position
A fuller trading update will be given in advance of the
Company's AGM on 24 March 2020. At this time we can report that
trading to date in 2020 has been in line with management's
expectations, with a strong increase in new installations compared
to the same period last year. However, we are, of course, beginning
to see some weakness in certain customer sectors.
The Company has an excellent cash position, with available cash
balances of approximately GBP7.7m as at the end of February.
AGM Resolution 2
The Board declared a final dividend for the year ended 31
December 2019 of 4.2p per ordinary share and a supplementary
dividend of 5.8p per ordinary share, equating to a total final
dividend of 10.0p per share at the time of announcing its results
for 2019 on 24 February 2020 subject to shareholder approval at the
Company's AGM on 24 March 2020. This dividend declaration was made
at a time when it was impossible to foresee the rapidly changing
impact of the Coronoavirus on the countries the Company operates in
and their economies. The Board therefore believes that, in the same
way it took rapid action with regards to home working, the
appropriate and prudent course of action would be to conserve and
build the Company's cash reserves in the current crisis. Management
will continue to monitor the situation closely, adjusting stock and
spending plans accordingly. It will also restrict further
recruitment to those new positions which will help generate growth
in sectors and regions which are less affected by the crisis.
Looking beyond the crisis, the Board believe there may be
opportunities to invest quickly in growth opportunities as the
economy recovers.
In addition to the measures outlined above to conserve and build
the Company's cash reserves, the Board has also decided to
recommend that shareholders reject AGM Resolution 2, as this would
be the simplest way of cancelling the dividend. It is the Board's
intention to vote against the passing of AGM Resolution 2 in
respect of their shareholdings in the company, amounting to, in
aggregate, 37.5 per cent of the issued share capital of the
Company,
If AGM Resolution 2 was not passed, and the dividend not paid,
the Board would still be able to declare and pay a dividend later
in the year, when the impact of the Coronavirus situation becomes
clearer.
The Company will provide a more detailed update on trading on 24
March, prior to the AGM.
AGM attendance
In light of the coronavirus outbreak, shareholders are
encouraged to vote at the Group's AGM by proxy.
Shareholders will be able to vote electronically using the Share
Portal Service via www.signalshares.com. To vote online
shareholders will need to enter their surname, investor code and
postcode. Please note that the deadline for receiving proxy forms
(including any submitted electronically) is 11 a.m. on 20 March
2020.
Shares held in uncertificated form (i.e. in CREST) may be voted
through the CREST Proxy Voting Service in accordance with the
procedures set out in the CREST manual
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
For further information, please contact:
Quartix (www.quartix.net)
Andrew Walters, Chief Executive
Daniel Mendis, Chief Operating and Financial Officer 01686 806 663
finnCap (Nominated Adviser and Broker)
Matt Goode /Scott Mathieson (Corporate Finance)
Alice Lane (Corporate Broking) 020 7220 0500
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END
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