Dividend is axed as Enodis slips

FAST-FOOD equipment maker Enodis has drawn on its experience during the Gulf War, when the market for its products fell 15%, to cope with a similar sales environment in the wake of the 11 September terrorist attacks on the US.

It has already made 900 people redundant, some 10% of its workforce, and expects a further 100 to go soon, saving £10m. Most of the jobs losses will be in the US. Non-core assets worth £50m, including some property, are to be sold in the current year.

Shareholders lost their final dividend payment today as the group instigated a wide-ranging programme of savings to reduce its overall debt of £366m. Chief executive Andrew Allner justified passing the dividend by saying: 'It is prudent to minimise cash outflow.'

The success of previous asset sales is revealed by the fall of £138m in debt in the six months between the interim and final stages, ending 29 September.

Fast-food sales rallied during the Gulf War and the economic downturn that followed, the market expanding worldwide as families economised by eating at burger bars.

Allner expects this to happen in the current year, with October and November trading already 'at levels close to our original plans'. Full-year pre-tax profits fell to £63.8m from £102.2m last time.

The shares rallied 1 1/2p to 89 1/2p.