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Drax holds firm on dividend

Despite taking a hit from Covid-19 disruption, the group expects to meet consensus expectations for the full year
April 22, 2020

Drax (DRX) has announced that its 2020 adjusted cash profits (Ebitda) are set to be in line with consensus expectations of £398m. This is despite an estimated £60m hit from the Covid-19 pandemic.

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The disruption largely relates to its "customers" business which focuses on the industrial and commercial, and small- and medium-sized enterprises (SMEs) markets. The division is expected to be lossmaking this year based on lower power demand and a potential increase in bad debt from SMEs.