InterQuest to adopt more prudent dividend policy

AIM-listed recruitment business InterQuest Group said on Thursday that it will adopt a more prudent policy on dividend payments following weaker trading in recent months.

In a trading update ahead of its results for the six months to 30 June, the company said the new policy means dividends will only be declared in circumstances where net debt levels are below twice earnings before interest, taxes, depreciation and amortisation. This will not affect the dividend announced on 14 March which will be paid on Friday.

InterQuest said that although it has benefited from solid sector fundamentals which underpin the business in the longer term, it has been experiencing weaker trading in recent months, especially in its core contractor market.

"Whilst it is still early, the company recognises signs of potential challenges ahead in the political and trading environment resulting from Brexit, the result of the UK election and the subsequent hung Parliament. The company continues to restructure its business in order to focus on the future technology markets it services."

At 1455 BST, the shares were down 7.8% to 41.02p.