“When the scale of the COVID-19 crisis became apparent, listed companies hit the liquidity button.”
In our 100 seconds video, I provide my insights on the impact of COVID-19 on investment communications.
As the crisis has taken hold, many listed companies have looked to bolster liquidity by reducing capex and discretionary spending, drawing down credit lines from banks, seeking government funding, and, possibly, cutting dividends too. On the London Stock Exchange, some share prices have more than halved.
“Don’t rush to give too much guidance.”
Greater insight into the impact of COVID-19 on performance will be available as calendar year-end companies deliver first-quarter results and March year-end companies present full-year results.
“We expect fund managers to go back to basics.”
Fund managers are likely to take a fresh look at the business models they’ve invested in and seek to assess whether they’ll deliver growth in a post-COVID-19 world.