Sopra Steria Suspends Its 2020 Guidance and Will Submit a Resolution at the Next General Meeting to Forgo Distribution of a Dividend in Respect of Financial Year 2019
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Regulatory News:
At its meeting held today, chaired by Pierre Pasquier, Sopra Steria’s (Paris:SOP) Board of Directors reviewed the action plan implemented by the Group to address the crisis caused by the Covid-19 pandemic.
Business continuity
Since mid-March, Sopra Steria has ensured its ability to continue providing the services and solutions required by its clients and strictly adheres to all regulations and guidelines from government authorities relating to the containment of Covid-19 in each of the countries where the Group operates.
The following measures were immediately put in place:
- A crisis management team was established, responsible for monitoring developments in the economic situation and from the standpoint of public health and empowered to take immediate decisions.
- The highest priority was placed on protecting the health of the Group’s employees, clients and partners.
- Secure, efficient and well-adapted systems for working from home, facilitated by considerable advance preparation, were put in place for nearly all employees.
In order to support employees with reduced work hours due to the crisis, the Group also decided to supplement the payments made by certain governments in order to maintain their level of remuneration.
Targets for 2020
Some of the Group’s clients have already communicated their decision to postpone or suspend the services provided. However, due to the lack of visibility into the extent or duration of the crisis, it is not possible at this stage to make sufficiently reliable forecasts. Consequently, the targets for 2020 announced on 21 February are suspended.
Dividend in respect of financial year 2019
In a spirit of responsibility, the Board of Directors has decided to submit a resolution for shareholder approval at the General Meeting to forgo distribution of a dividend in respect of financial year 2019.1
Sopra Steria’s fundamentals are strong and it enjoys a solid financial position. At 9 April 2020, the Group has access to €1.5 billion in confirmed financing, including a €900 million undrawn revolving credit facility maturing in July 2023.
Backed by the commitment of its teams and the close relationships it has built both with its clients and its entire ecosystem, Sopra Steria is confident in its ability to overcome this crisis.
Next press release
Friday, 24 April 2020 (before market open): Q1 2020 revenue. An update on the situation will be communicated at that time.
About Sopra Steria
Sopra Steria, a European leader in consulting, digital services and software development, helps its clients drive their digital transformation and obtain tangible and sustainable benefits. It provides end-to-end solutions to make large companies and organisations more competitive by combining in-depth knowledge of a wide range of business sectors and innovative technologies with a fully collaborative approach. Sopra Steria places people at the heart of everything it does and is committed to putting digital to work for its clients in order to build a positive future for all. With 46,000 employees in 25 countries, the Group generated revenue of €4.4 billion in 2019.
The world is how we shape it.
Sopra Steria (SOP) is listed on Euronext Paris (Compartment A) – ISIN: FR0000050809
For more information, visit us at www.soprasteria.com
1 In the announcement of the Group’s full-year results for 2019, published on 21 February 2020, a dividend payment of €2.40 per share had initially been proposed in respect of financial year 2019.
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