Connect Group's Board has evaluated the overall performance in the year and in light of both ongoing confidence in future positive cash flows and the immediate priorities of the business, the Board has resolved to recommend a final dividend of 1.0p, leaving the full year dividend as 1.0p to be paid in February 2020, a reduction of 2.1p or 67.7% (FY2018: 3.1p).
Other financial highlights include:
Group Adjusted profit before tax for continuing operations of £23.2m is down by 18.3% (FY2018: £28.4m) and Adjusted Earnings per Share of 7.9p is down 15.1% (FY2018: 9.3p).
Following an impairment of £45.5m to the goodwill, tangible and intangible assets of Tuffnells, the Statutory loss before tax is £37.6m (FY2018: loss of £35.5m) and Statutory earnings per share is a loss of 12.9p (FY2018: loss of 15.5p).
The Group generated free cash flow from operations of £8.3m (FY2018: £20.2m), helping to reduce Net Debt by £9.5m to £73.9m (FY2018: £83.4m).
Since the year end, the Group has completed the sale and leaseback of 6 Tuffnells depots for £9.9m, the proceeds of which have been used to further reduce the Group's Net Debt from that reported at the year end. They continue to investigate opportunities for remaining depots, but, with strong underlying finances, their capital management strategy is not dependent on further transactions.
After careful consideration of the Group's overall performance in the year and in light of both ongoing confidence in future positive cash flows and the immediate priorities of the business, the Board has recommended a final and full year dividend for FY2019 of 1.0p (FY2018 3.1p, down 2.1p).
