- Australian fintech flexigroup (FXL) has deferred its interim dividend amid the volatile global economic climate
- The company was due to pay a 3.85 cents per share dividend on April 14, but has now delayed the payment until mid-October
- FXL has chosen to defer its dividend payment and rely on cost-cutting and existing funding facilities to see it through the troubled times
- The company had previously withdrawn earnings guidance for the remainder of the financial year, and continues to monitor the pandemic fallout closely
- flexigroup is up 6.25 per cent to 85 cents a share
Australian fintech flexigroup (FXL) has deferred its interim dividend amid the volatile global economic climate.
The company was due to pay a 3.85 cents per share dividend on April 14, but has now delayed the payment until mid-October. The record date for the interim dividend remains unchanged.
A number of companies have undertaken capital raising and operational downgrades amid the COVID-19 crisis. FXL has instead chosen to defer its dividend payment and rely on cost-cutting and existing funding facilities to see it through the troubled times.
The company says it has over $550 million in undrawn committed wholesale funding facilities provided by a range of major domestic and international banks, and over $100 million combined in undrawn corporate debt facilities and unrestricted cash. This gives flexigroup considerable breathing room to continue its operations.
The company had previously withdrawn its earnings guidance for the remainder of the 2020 financial year due to the virus crisis. While the global economic downturn is creating tough conditions for the financial sector, the company’s board says it will continue to monitor the impact of COVID-19 closely, and believes the measures it’s taking to mitigate the pandemic impacts to be prudent at this time.
flexigroup is up 6.25 per cent to 85 cents a share as at 1:30pm AEST.