The board of directors of Coor proposes a reduced dividend of SEK 2.20 per share to be paid in two parts – negative effects of the coronavirus are expected

Coor previously communicated in the year-end report 2019 that the board of directors’ intention was to propose to the annual general meeting 2020 a dividend of SEK 4.40 (4.00) per share, whereof SEK 2.20 (2.00) per share as ordinary dividend and SEK 2.20 (2.00) as extra dividend.

Coor previously communicated in the year-end report 2019 that the board of directors’ intention was to propose to the annual general meeting 2020 a dividend of SEK 4.40 (4.00) per share, whereof SEK 2.20 (2.00) per share as ordinary dividend and SEK 2.20 (2.00) as extra dividend.

 

As a precautionary measure due to the uncertain effects of the spreading of the novel coronavirus and the severe economic effects on society thereof, the board of directors has revised its earlier dividend proposal. The board of directors has now resolved to propose that only the ordinary dividend of SEK 2.20 is distributed to the shareholders and that the dividend distribution is made on two occasions - each of SEK 1.10 per share. The board of directors thus withdraws its previously communicated extra dividend of SEK 2.20, and proposes a dividend of in total SEK 2.20 per share.

 

The record date for the first payment is proposed to be Thursday, April 30, 2020 and for the second payment Friday, October 2, 2020. Subject to resolution by the annual general meeting in accordance with this proposal, the first dividend payment is expected to be made on Wednesday, May 6, 2020 and the second dividend payment is expected to be made on Wednesday, October 7, 2020.

 

Coor expects the economic effects of the coronavirus to have a negative impact on the company's net sales and operating profit, not least in respect of the variable volumes in food and beverages. Food and beverage services corresponded to approximately 15% of Coor's sales in 2019. We are now implementing measures to minimize the financial effects by reducing the company's costs.

 

Coor works proactively to secure the company's cash flow from both a working capital perspective and an investment perspective. Coor keeps a good margin to the bank covenants at 3.75x (interest-bearing net debt per balance sheet date divided by adjusted EBITDA, rolling twelve-month basis) for the company's bank credits of SEK 1,500 million (unutilized credit facility corresponds to approximately SEK 750 million).

 

The company's long-term financial goals remain.

 

For more information, please visit www.coor.se or contact:

 

Mikael Stöhr, President and CEO, Coor

+46 10 559 59 35

mikael.stohr@coor.com

 

Klas Elmberg, CFO and IR-director

+46 10 559 65 80

klas.elmberg@coor.com

 

Magdalena Öhrn, Communications Director, Coor

+46 10 559 55 19

magdalena.ohrn@coor.com

 

 

This information is such that Coor Service Management Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 11:30 March 19, 2020.

Coor is a leading provider of facility management services in the Nordics, focusing on integrated and complex service undertakings (IFM). Coor offers specialist expertise in workplace services, property services and strategic advisory services for development of customers’ service activities. Coor creates value by executing, leading, developing and streamlining its customers’ service activities, ensuring that they provide optimal support to the core business over time. Coor’s customer base includes many large and small companies and public-sector organisations across the Nordic region, including ABB, Aibel, Det Norske Veritas, E.ON, Ericsson, Equinor, ICA, NCC, Politiet (Danish Police), Saab, Sandvik, SAS, Telia Company, Swedish Transport Administration, Vasakronan, Volvo Cars and Volvo Group.

 

Coor was founded in 1998 and is listed on Nasdaq Stockholm since 2015. Coor takes responsibility for the operations it conducts, in relation to its customers, employees and shareholders, as well as for its wider impact on society and the environment. Read more at www.coor.com