FY20 trading and outlook – “imminent and meaningful downturn” expected Headlam’s statement this morning notes that most of Q1’20 has been “reasonably resilient, and broadly in-line with that of 2019”. However, management now expect an “imminent and meaningful downturn in orders. As the overall impact on demand and over what time period is not yet known, it is not currently possible to provide guidance on the expected outturn for the financial year ending 31 December 2020””. A further announcement will be made when the Board has more clarity. FY19 dividend suspended FY19 dividend of 17.45p is suspended (saving £14.6m cash outflow) The Board is “committed to providing dividend income to its shareholders, and dependent on prevailing conditions at the time, the Board will consider an appropriate augmentation to the 2020 interim dividend that is normally declared at the time of the Company’s interim results announcement and payable in January of the following year. Alternatively, and subject to trading in the final quarter of 2020 and other prevailing conditions at the time, the Company may consider the declaration of a special dividend.” Strong Balance Sheet and significant liquidity headroom Average FY19 net debt was £3.3m (£27m net cash at Dec’19) £109.7m of total banking facilities at Dec’19 (94.1% undrawn at that date) In Aug’19, banking facilities were extended from Dec’21 to Apr’23 Headlam also has short-term uncommitted facilities of £25m (renewable annually) Largely freehold property portfolio with minimal lease commitments. PPE assets of c.£115m at Dec’19 Forecasts under review We place our forecasts under review until greater clarity is available. Continued over ….