International Personal Finance pulls dividend due to Covid-19

IPF said the cancellation of its dividend would save the group £17.3m in cash and was in the "long-term best interests of the business and its stakeholders".

The London-listed company said the decision came as regulators and governments in a number of its markets had implemented, or were considering implementing, temporary consumer lending measures in response to the Covid-19 pandemic, including debt repayment moratoriums and new or lower pricing limits.

IPF said collections in its home credit businesses had also been hit by tighter restrictions imposed on the freedom of movement of individuals. It added that while it remained too early to quantify the potential financial impact of the pandemic on its businesses, it is taking "a number of actions" to protect liquidity through the outbreak.

"Capital expenditure and 2020 salary increases (including those of our executive directors) are being deferred, costs are being reduced, and discretionary expenditure curtailed," said IPF.

"Additionally, in response to reduced collections and in some cases tighter price caps, we have significantly restricted our lending across all of our businesses."

IPF also highlighted its strong balance sheet and headroom on undrawn debt facilities of £203m.

At 0900 BST, IPF shares were down 14.70% to 65p.