Firm warns of hit to visitor levels and building capacity
Crest Nicholson has become the latest housebuilder to cancel its dividend because of the coronavirus outbreak, citing an expected “significant impact” on buyers, production capacity and trading.
The firm said it had made arrangements to draw its revolving credit facility, resulting in available cash of £185m.
It added: “The board has carefully considered this week’s rapidly evolving government guidance in respect of COVID-19 and expects this to have a significant impact on visitor levels, production capability and trading performance over an unclear timeline.
“Accordingly, the company has taken the difficult decision to cancel its final dividend of 21.8p per share.”
The dividend, equivalent to more than £50m had been due to paid next month.
The company said it was also ”suspending all existing financial guidance until both the severity and duration of the COVID-19 impact becomes clearer”, given the ”unprecedented and unpredictable situation”.
It said it had taken to decision to protect cash in order to enable the business to “trade through this period of prolonged uncertainty.”
Yesterday, retirement housebuilder McCarthy & Stone said it was cancelling its final dividend payment of the year due to the uncertainty created by the coronavirus pandemic.
And last week Berkeley postponed a £455m investor payout for the same reason.
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