James Fisher & Sons board members have agreed to a 20% reduction in salaries and fees, as part of the company’s efforts to mitigate the financial impacts of the coronavirus pandemic.
The cuts will take place from 1 April 2020.
The package of measures also includes the deferral of discretionary capital expenditure, a freeze on hiring new staff and suspension of the final dividend for the year ended 31 December 2019, of 23.4 pence per share, until further notice.
James Fisher said it will continue to monitor the developing situation and further actions will be taken as necessary.
The company stated: “The health and safety of our people is of paramount importance and we have implemented a range of actions to protect our colleagues, customers and suppliers.
“Whilst Group trading in the first two months of 2020 is ahead of prior year, the potential impact of Covid-19 is difficult to predict with any degree of certainty. Given this position, we have proactively taken steps to reduce costs, to optimise cash flow and to protect liquidity.”
James Fisher has a “strong balance sheet and good liquidity”. Excluding IFRS 16, net debt at 31 December 2019 was £203m (€218m), with around £42m of headroom. In addition, the group signed a £30m revolving credit facility on 20 March 2020.
James Fisher will provide a further update at its annual general meeting to be held on 30 April 2020.